Tips on Avoiding Conflicts of Interest

~ Be aware that, in a small or family-owned business, special favors to family members and friends de-motivate employees and set a bad example.

~ Think twice about offering a contract to a supplier who is a relative. Award contracts on merit.

~ Avoid letting family members borrow company vehicles, and don’t allow your sister to ask the company computer wizard to set up her home office.

~ Don’t put family members on the payroll if they’re not working in the company or can’t make a real contribution to the business.

~ Think of the future. If you hope to seek investors or go public, dealings with family members outside the business will be questioned.