Most companies experience conflicts of interest, and most often, they are associated with disagreements between co-owners or with a clash of personal interests of an employee and business interests. Corporate disputes are especially dangerous for small and medium-sized businesses, which are less protected from financial fluctuations and cannot count on state support. To deal with such troubles, special software helps to resolve conflicts of interest.
How conflicts arise in business
Management experts point out that there are several sources of conflicts of interest in the top management of a company:
- Mismatch of interests and needs of partners.
- Unequal share ratio and unstable economical environment.
- The refusal of one of the spouses to agree to the sale of the company’s share.
There is also an opinion that a conflict of interest is often associated with the fact that the interests and tasks of employees do not coincide. For example, employees receive bonuses for profit but evaluate the quality of their work by the size of the portfolio. In this case, employees direct most of their efforts towards achieving personal goals and not for the company’s benefit – this does not always cause damage. Still, it also does not work for the primary purpose of the business.
Working software to resolve conflicts of interest
The software helps protect your business from the risks associated with emerging conflicts of interest. The key benefits of using it are:
- Improving work efficiency. Every large company has a vast set of rules about dealing with conflicts of interest. Instead of specially trained employees, the program can deal with conflict resolution, while the company’s employees will deal with their immediate tasks.
- Increasing transparency. Business transparency helps it grow and become more attractive to employees, investors, and shareholders. Automating the COI process helps achieve a high level of transparency.
- Timely identification and elimination of risks. COIs are known to be a risk to a company. Depending on the size of your company, the risk of COI can range from minor to devastating. Analyze and eliminate risks before they become a problem.
- The software helps to cope with such tasks: as linking bonuses with profit, coordinating options for behavior in disputes, drafting local regulations, identifying emerging conflicts, and so on.
The program helps collect COI statements automatically – you don’t have to look through email or read sheets of text from employees.
Conflicts of interest: actual and potential
You can keep track of actual and potential conflicts of interest through the software.
Applications collect real-time information about conflicts of interest that employees have. This makes it possible to deal with situations and close them gently.
The analytics of existing COIs helps company managers to be on the lookout for potential conflicts of interest. This opens up the possibility of “putting a pillow” where you can fall.