5 Tips on Avoiding Conflicts of Interest
Create a harmonious working environment while employing family.
1. 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.
2. Think twice about offering a contract to a supplier who is a relative. Award contracts on merit.
3. 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.
4. 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.
5. Think of the future. If you hope to seek investors or go public, dealings with family members outside the business will be questioned.