Types of conflicts of interests
The following are the most common forms of conflicts of interests: Self–dealing, in which an official who controls an organization causes it to enter into a transaction with the official, or with another organization that benefits the official. The official is on both sides of the " deal." Outside employment, in which the interests of one job contradict another. Family interests, in which a spouse, child, or other close relative is employed (or applies for employment) or where goods or services are purchased from such a relative or a firm controlled by a relative. For this reason, many employment applications ask if one is related to a current employee. If this is the case, the relative could then recuse from any hiring decisions. Abuse of this type of conflict of interest is called nepotism. Gifts from friends who also do business with the person receiving the gifts. (Such gifts may include non-tangible things of value such as transportation and lodging.) Pump and dump, in which a stock broker who owns a security artificially inflates the price by " upgrading" it or spreading rumors, sells the security and adds short position, then " downgrades" the security or spreads negative rumors to push the price down. Other improper acts that are sometimes classified as conflicts of interests are probably better classified elsewhere. Accepting bribes can be classified as corruption; almost everyone in a position of authority, particularly public authority, has the potential for such wrongdoing. Similarly, use of government or corporate property or assets for personal use is fraud, and classifying this as a conflict of interest does not improve the analysis of this problem. Nor should unauthorized distribution of confidential information, in itself, be considered a conflict of interest. For these improper acts, there is no inherent conflict of roles, unless being a (fallible) human being rather than (say) a robot in a position of power or authority is considered to be a conflict. 3. Answer the questions: What are the forms of conflicts of interests? Are gifts, bribes, pumps and dumps considered improper acts? Why? When can the improper acts bring to inherent conflict of roles? What is fraud considered to be? Can confidential information provoke a conflict of interest? 4. Match the following words with the translation: to cause– отказываться to contradict– взвинчивать official– могущий ошибаться nepotism– обман, мошенничество deal– активы assets– сделка to recuse– вздувать abuse– врожденный to inflate– противоречить inherent– неправомочный to upgrad– заставлять bribe– кумовство fraud– взятка unauthorized– злоупотребление fallible– служащий
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