Conflicts of interest: When employees aren’t on your side - Crawford Ellenbogen

An employee’s undisclosed conflict of interest can be a serious breach of fiduciary duty to an employer. In fact, when conflicts of interest exist, companies often suffer financial consequences. Uncovering conflicts, particularly when employees are profiting from them, can be difficult. Instead, focus on prevention. Create and communicate a conflict of interest policy that contains specific examples and outlines the consequences of violating it. Also require employees to complete annual disclosure statements listing the names and business interests of family members, as well as themselves.