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Compliance & Governance

Conflict of Interest

Also known as: COI

A conflict of interest arises when a person involved in a procurement decision has a personal interest that could improperly influence that decision.

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Examples include a buyer with a financial stake in a supplier, a family relationship with a vendor, or accepting significant gifts from a bidder. Even the appearance of a conflict can undermine trust in a procurement decision, so conflicts must be declared and managed, not hidden.

Good governance requires people to declare potential conflicts and step back from decisions where they are conflicted. Combined with segregation of duties and transparent sourcing, this keeps awards defensible and fair.

Frequently asked questions

What is a conflict of interest in procurement?
A conflict of interest is when someone involved in a buying decision has a personal interest — financial, family or otherwise — that could improperly influence the outcome.
How are conflicts of interest managed?
By requiring people to declare potential conflicts and recuse themselves from affected decisions, backed by segregation of duties and transparent, documented sourcing.

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