What does "conflict of interest" mean in a compliance program?

In a compliance program, the concept of "conflict of interest" refers to a scenario where an individual's personal interests interfere with the best interests of the organization. This can occur when a person's decisions or actions are influenced by personal gains, rather than adhering to their responsibilities to the organization they represent.

When personal interests, such as financial gain, family ties, or friendships, take precedence over the organization's needs or ethical standards, it creates a potential risk for the organization. It can lead to decisions that could harm the organization’s reputation, financial stability, or operational effectiveness. By recognizing and managing conflicts of interest, compliance programs can help maintain integrity and ensure that decisions are made in the organization's best interest, ultimately fostering trust and accountability within the workplace.

In contrast, aligning organizational and personal interests, promoting transparency, and encouraging collaboration are positive elements typically found within effective compliance programs, but they do not define what constitutes a conflict of interest.