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.