Conflicts of interest (COF) and the pursuit of truth. We hear and read so much about conflicts of interest. Why is it such a big deal? I mean, isn't everyone conflicted to some extent in their dealing with everyday life?

www.Businessethics.com says, "We can define a conflict of interest as a situation in which a person has a private or personal interest substantial enough to appear to influence the objective exercise of his or her official duties as, say, a public official, an employee, or a professional." Wikipedia says, "A conflict of interest can only exist if a person or testimony is entrusted with some impartiality; a modicum of trust is necessary to create it. The presence of a conflict of interest is independent from the execution of impropriety. Therefore, a conflict of interest can be discovered and voluntarily defused before any corruption occurs."

And, in plain English that means what?

Conflicts of Interest in a family - Your brother-in-law is stealing from your employer's company. It has become an almost unbearable secret. More importantly, the brother-in-law is best friends with your boss. If you take the whistleblower position and report this accounting fraud, could you lose your job over this? Or, do you compromise yourself by getting transferred from that department, or continue signing off on reports, hoping at some point, someone or something will bring this whole secret into the open.

COF in business. The chief executive officer knows the company bottom line results aren't that good but continues on with the dog and pony show, thereby sticking it to the small investor, trustingly still. He knows that if he does not act as if everything is just dandy, he won't get his large year end bonus. Is this right? Is he conflicted? Is it done all the time? The answers are: no, yes, and yes, far too often than we should have to contemplate. Sarbanes-Oxley did little for trusted senior managers who put their own interests and careers ahead of everyone else. Rare, indeed, is the manager who is willing to try all and go down with the ship still trying to resurrect the bow.

COF in politics: the Attorney General's office of the State of California states their policy for politicians as, "Conflict of interest laws are grounded on the notion that government officials owe paramount loyalty to the public, and that personal or private financial considerations on the part of government officials should not be allowed to enter the decision making process". And there you have it - plain as the nose on your face.

Conflicts of interest for some in the matter of betraying a trust, is a little like confessing one's venial (you'll have to ask a Catholic what that means) sins in the confessional. They benefit, they make amends, it wasn't much of a sin in their eyes and move on. But, there are those who have a rigorous moral code that their personal character will not allow them to deviate from. In refusing to accept a conflicted position, are they doomed to material failure, but take comfort from always maintaining personal integrity? It may be small comfort if the rest of the family suffers because of one's ethical stand. Which is better: being able to live with oneself, or going along to get along? At what point do you no longer have respect for yourself, nor for the person(s) who put you in this conflicted position? I contend that this constant push/pull in today's society leads to depression, anxiety and continued stress in personal lives. The individual cannot solve the constant compromise between personal ethics and individual/ community conflicts of interest. Does it just become the way of the world - that some with lighter consciences will always benefit and others won't?

Small wrongs for the greater good. None of these decisions are ever easy. Even when you choose to do nothing, it is not understand that a choice has been made. There is an old Bermudian expression for ignoring all sorts of chicanery, "it's got nothing to do with me". That's right, until it does have to do with you. In such moral dilemmas, no one can know the pressures that some are under, so dependent upon the almighty dollar and place in society that they are willing, more than once and sometimes every day, to look the other way. No one wins.

The solution. Of course, we, as individuals, are and will continue to be conflicted. How can we not be, especially given the family mantra of 'blood being thicker than water'. The solution seems so simple. Disclose - "I have a conflict of interest - I cannot vote on recommending the award of a construction contract because my friend (my relative, my son-in-law, my business associate) will benefit from my inside information and receive the contract unfairly". Not everyone has the courage (or the ethics) to do that. Instead, there is subterfuge, denial of relevant facts, acts of supposed ignorance, outright lies and ultimately deceit. This generates loss of respect, sometimes permanently, for the person and his/her place within the community.

Disclosure and truth in positions only works if telling the truth does not place you, your family, and your community in harm's way from the potential threat of grave retributory violence. You see how complicated it becomes?

In summary, in a dictatorship this type of philosophical discussion never takes place. Freedom of speech, thought, and expression is never allowed; the brave may be terminably punished. Debate of moral ambiguities only arise in a democratic society. Fortunately, as an island, we are still standing on the side of liberty, equality and justice for all. Let us continue to support such democratic ideals; for if we allow the individual and his/her rights to be circumvented, we have no future.

Let me hear your comments.

Martha Harris Myron, CPA, CFP(US) TEP(UK) JP- Bermuda is an independent fee-only cross border planning specialist in investment, tax, estate, and strategic retirement planning services for Bermuda residents with cross-border and multi-national connections, internationally mobile people and US citizens living abroad. For more information, contact martha.myron@gmail.com">martha.myron@gmail.com or 296 3528 at Patterson Partners Ltd.