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Conflicts of interest: The ethical viewpoint


Author Info

  • Argandoña, Antonio

    (IESE Business School)


Conflicts of interest are a very widespread ethical problem which, precisely for that reason, deserves special attention, both from a legal viewpoint and from the point of view of ethics applied to organizations and professions. In this paper we use the conceptual framework of agency theory to explain what constitutes a conflict of interest. This enables us to identify what causes conflicts of interest and analyze the ethical criteria to be applied to them and the solutions commonly proposed. Because our processing of information, our judgments and our decision making are subject to significant unconscious and unintended biases, the emphasis in this paper is on the conditions that an agent's decision must satisfy in a conflict of interest situation in order to be ethically correct.

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Bibliographic Info

Paper provided by IESE Business School in its series IESE Research Papers with number D/552.

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Length: 19 pages
Date of creation: 20 Mar 2004
Date of revision:
Handle: RePEc:ebg:iesewp:d-0552

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Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
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Keywords: agency theory; agent; conflict interest; corruption; ethics professions;

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Cited by:
  1. Argandoña, Antonio, 2009. "Can corporate social responsibility help us understand the credit crisis?," IESE Research Papers D/790, IESE Business School.


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