People buy from people they KNOW, LIKE, and TRUST… But does this mean conflict of interest is embedded in how business operates?

NO.

Let’s understand how professional relationships can be friendly and still remain professional. And please – let’s differentiate professional networks from shady ones… I know it’s confusing, because influence is influence, right?

WRONG.

What matters is THE SOURCE of influence of a business partner. That makes all the difference between ethical and unethical (or even criminal) business.

Simply put: Don’t engage in a sale as a favour – one that creates a “who-knows-what-kind” obligation in return.

Good business starts with a good product or service, a clear offer, clearly communicated to those whose problems you are actually solving. Just good old business – done properly, vigilantly, and professionally.

It is exactly in this communication – understanding a partner and their needs, presenting the offer – where relationships are built. Where the supplier understands the client, and the client understands the supplier: their credibility, the value they bring, and also the risks. This is how trust – and yes, even likeability – develops in a legitimate way.

Sometimes, trust-building is accelerated through networks. That’s a OK, if you make sure those are professional networks – where influence is built on years of partner’s quality work, a credible track record, and proven integrity of key persons.

If you are personally happy to work with such a partner, that’s perfectly normal, and it also makes work enjoyable! As a business professional though, ensure that “the like” and “the trust” are grounded in professional merits. Never do business as a sole (or rationalized) favour to friends, relatives, political or other private allies – or just because you expect something (personal) in return.

The conflict that’s an issue is in wasting an opportunity or even damaging the company you work for, or its stakeholders – in pursuit of a private gain.

Sounds simpler? Still, many real-life situations are not such a clear-cut. Like the following…

Can I accept a special discount as a private buyer from a supplier that also works with my company?

Is it appropriate to recommend a cousin for a position in a company where I am not directly managing HR, just opinion is valued?

How about my team is invited to a private vineyard owned by a supplier to celebrate a successful project? Our team gets a treat and I get to be a good boss… These are just a few of the practical dilemmas we discussed at the latest EICE Club meeting by EICE European Institute of Compliance and Ethics. It can get much more complex with circumstances of each case – but always very real. Debating with dear colleagues reminded me that, as a #compliancecommunity, we often have all the answers.

What do you think?