Conflict of interest

[Howard]

Company B provides services which company A has a use for. Company A has discovered company B due to the fact that there is a blood relation between employees at each of those companies (one at each). Is there any way through which company B can be contracted for their services to company A without legal or ethical complications?

 

[krunchykrome]

It depends on the nature of company A.

 

[Ika]

Sure, fire both blood relatives.

 

[Uppsala9496]

As long as there is full disclosure and the 'blood' ee's have no say in the contract, then there are no issues.

 

[spidey07]

I don't really see any conflict of interest. If company A can easily show that B is the best choice based on whatever criteria they deem necessary.

Conflict of interest means there are two direct interest or duties that are in direct conflict. Even if the presidents of both companies were brothers there would be none.

 

[DaveSimmons]

My brother has done web design and press release service work for my previous and current employers.

They've used him because he does good work at reasonable prices. I have nothing to do with the hiring or managing of that work, so there's no conflict.

The only way there could be a conflict would be if I applied some pressure or made some sort of threat like leaving the company unless they hired him.

 

[keird]

I think any kind of gang activity would have both legal and ethical issues. It would be the same as having MS-13 or Crip relations.

 

[D1gger]

Way too little information to make clear decision. It depends on the nature of the business relationship, the respective roles of the related individuals and degree to which the relationship has been disclosed.

It is entirely likely that a business relations can be formed without a real or percieved conflict of interest.

Real Life Example: My brother works for a company that supplies construction supplies. My company buys supplies from them from time to time. We buy from them when they have the right product at the right price. My relationship with my brother has no influence over the buying decision.

 

[dullard]

There is a conflict of interest (COI) in that example. But simply having a COI is not a problem. COIs happen all the time. The problem comes when the COI changes the result to favor the person(s) with the COI.

Company A and B can enter contracts without any legal or ethical issues even if there is a COI. Either dispose of the COI (fire an employee), disclose of the COI (let all sides know about it), recluse the people with the COI (that is, have someone else make the decisions), have a 3rd party decide (one where there isn't a COI), and/or use your code of ethics (that says how to handle this situation).

 

[rasczak]

I think any kind of gang activity would have both legal and ethical issues. It would be the same as having MS-13 or Crip relations.

hehe. i see what you did there.

 

[DaWhim]

is anyone of them in a senior position that can affect decision making?

if everything is disclosed, it shouldn't be matter.

 

[Howard]

The relatives are both project engineers at their respective companies. The project engineer at company A has considerable influence on the decision-making process through which a contractor/proposal is selected. The project engineer at company B is generally not involved in outside sales.

 

[Bignate603]

As long as there is full disclosure and the 'blood' ee's have no say in the contract, then there are no issues.

Exactly. If it comes up the person that has any relation to the other company should let their superior know and if they have any say in the decision they should ask that the responsibility be moved to someone else.

 

[guyver01]

Company B provides services which company A has a use for. Company A has discovered company B due to the fact that there is a blood relation between employees at each of those companies (one at each). Is there any way through which company B can be contracted for their services to company A without legal or ethical complications?

are either relatives involved in any decision making process? is this a publicly traded company?

if so.. there needs to be full disclosure, including other companies that were considered, and why they didn't make the cut.

either that..

or fire both employees.

not employed... no complications.