What is a conflict of interest?

A conflict of interest is a situation in which a person or organization is involved in multiple interests, financial or otherwise, one of which could potentially impair their judgment. In North Dakota, a conflict of interest is particularly pertinent in corporate law, where a person or organization may have competing interests that put them in the position of having to choose between what is right for their company as a whole or what is best for a particular group within the company. For example, consider a situation in which a company CEO has a financial interest in a company that supplies one of the company’s main products. In that scenario, the CEO may be presented with a decision that would benefit the supplier’s company at the expense of the overall company—causing a conflict of interest. Furthermore, conflicts of interest can also arise in situations where a person or organization is in a position of trust. This could include lawyers, accountants, fiduciaries, and public officials, who are in a position of power and must remain impartial to their clients or constituents. In North Dakota, the state’s laws on ethical conduct require that public officials, professionals, and business people avoid any activities that could potentially lead to a conflict of interest. While there may be certain circumstances in which a person or organization can manage a conflict of interest, North Dakota takes a particularly strict stance when it comes to avoiding any potential conflicts of interest.

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