Origin Dictionary / OD-146
Conflict of Interest
Your friend’s enthusiasm for your move makes more sense when they ask for your bedroom.
01Dictionary Meaning
A conflict of interest exists when a person’s own interests could interfere with a duty or responsibility owed to someone else.
02What People Think
“If someone is helping me make a decision, their interests must point in the same direction as mine.”
03What’s Underneath
A friend agrees to give an objective view on moving in with a partner. They strongly encourage the move while privately hoping to take over the larger bedroom you would leave behind. Their recommendation might still be sensible, but they now have a personal benefit attached to one outcome.
A conflict of interest is the tension between that benefit and a responsibility to another person. It can involve money, access, reputation or a benefit for somebody close to the decision-maker. The conflict exists because the interests can pull in different directions, even before anyone proves that the judgment was actually distorted.
People can sincerely believe their advice is fair while a competing interest influences which facts receive attention. Disclosure makes an interest visible, but visibility alone does not resolve the underlying incentive. Conversely, simply having an opinion or disagreeing with someone is not enough to establish a conflict. There must be an identifiable responsibility and a competing interest.
04The Game
What is this person supposed to be deciding for whom, and what do they personally gain from one answer? Both parts are needed to understand the potential conflict.
05One Line
Advice can be sincere while the adviser still has something else to gain.
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M2Mature Individuals
Inspect the interests behind recommendations and decisions made for others.
References 2
- How Serious is Your Agent’s Conflict of Interest?
Program on Negotiation at Harvard Law School
- The Dirt on Coming Clean: Perverse Effects of Disclosing Conflicts of Interest
Daylian M. Cain, George Loewenstein and Don A. Moore / SSRN