Resolving Conflicts of Interest

When individuals' private interests are as tightly interwoven as those found in successful family businesses, conflicts are common and virtually inevitable. It is suggested that the family be proactive in anticipating potential conflicts of interest and, if possible, adopt as a policy that no one in the family does business with the family business. However, when an outright ban on doing business with outside family members seems impossible, the following guidelines are suggested: 1. The firm will seek competitive bids for all controversial projects. 2. Family shareholders will be fully informed of all arrangements with family members. 3. Family members' use of pressure to secure employment or special treatment for others will be strictly avoided.