Q&A for How to Recognize Conflict of Interest

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How do you ensure that you have no conflict of interest in a business deal?

Dave Labowitz
Business Coach
Dave Labowitz is a Business Coach who helps pre-entrepreneurs, solopreneurs/entrepreneurs, and team leaders start, scale, and lead their businesses and teams. Before beginning his coaching career, Dave was a startup executive who spent over a decade building high-growth companies. Dave’s “path less traveled” life includes adventures such as dropping out of high school, co-authoring a book in the Smithsonian Institute, and getting his MBA at Pepperdine’s Graziadio Business School.

Dave Labowitz

Business Coach

Expert Answer

Always double-check business deals before they go through to make sure that there's no conflict of interest. It's always important to make sure that ethics are being considered when you make any kind of deals—in some cases, this is actually a legal requirement.

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Is it a conflict of interest if the judge is related to the plaintiff in a divorce case and the plaintiff's sister is the clerk of the court?

Evan LaForge

Community Answer

Yes, it is.

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Is it considered a conflict of interest if the same judge who presided over my juvenile court proceedings is now going to be the judge for my children's CPS proceeding?

Community Answer

Yes. If he has an already apparent opinion of you, chances are that opinion is going to be carried over into your children's case.

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It is a conflict for an attorney to represent an agency where his wife is a paid manager?

Tom De Backer

Top Answerer

Not necessarily, as he would be defending the same interests his wife is. It might be though, so it is best to consult a legal specialist.

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Is it a conflict of interest if I have my own cleaning company but am paid by my family to clean their clients' buildings?

Tom De Backer

Top Answerer

No, not necessarily. Make the distinction between you, a natural entity, and you, a legal entity. The legal entity is receiving money from a client to do a task. If the natural entity happens to be related to the client, there's not necessarily a conflict of interest. It's different when there's a public tender involved. But in general, this is not an issue.

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Should I stay at a committee meeting when a matter involving a member of my family is being discussed?

Evan LaForge

Community Answer

If you are making a decision that will make that person better or worse off, then leave. Otherwise, stay on the committee.

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