Questions that will help you identify potential conflicts of interest on your board: Part 1

Conflicts of interest can have a detrimental effect at board level, creating ethical problems by distorting decision-making and generating consequences that can undermine the credibility of boards, organizations or even entire economic systems. The real danger lies in the extent to which boards and directors are unaware of the many subtle conflicts of interest within a group dynamic. Add to the mix divided loyalties among shareholders and the multiple roles of directors, and the potential for conflict becomes clear.

We have identified what we refer to as four tiers of conflicts that can arise in the boardroom:

1. Tier-I conflicts: Individual directors versus The company
2. Tier-II conflicts: Directors versus stakeholders
3. Tier-III conflicts: Stakeholders versus other stakeholders
4. Tier-IV conflicts: The company versus society

In this four-part series, we will give you ways to examine whether your board has any of these conflicts, an exercise that is worth doing on a regular…