Conflict of Interest in Business

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Questions and Answers

What is the definition of conflict of interest?

A situation where the company is not interested in the personal matters of its employees

A situation where an individual is not interested in the company's financial matters

A situation where an individual has conflicts with other employees

A situation where an individual's personal interests affect their duty to act in the best interest of the company (correct)

What may direct conflicts of interest include?

Both a and b (correct)

Employee's personal interests in a transaction

Employee's personal relationships with business partners or competitors

Relative or close associate's interests in a transaction

Which of the following does not apply to direct interests as defined?

Spouses' interests in any organization that has a business relationship with the Company

Investments or management positions held by Board members and employees

Ownership interests in a Publicly Listed Company (correct)

Unmarried children under the age of eighteen years holding management positions

What do direct interests refer to in the NNPC Limited Code of Conduct?

Board members or employees having business relationships or ownership in NNPC Limited business partners or competitors (D) Signup and view all the answers

How are conflicts of interest expected to be handled by NNPC Limited employees?

By identifying, declaring, and following guidelines provided by the relevant regulatory and compliance unit (C) Signup and view all the answers

Where can conflicts of interest cases be reported as per the NNPC Limited Code of Conduct?

To the Relevant Regulatory and Compliance Unit or Human Resources Department (D) Signup and view all the answers

What should employees do to ensure they handle conflicts of interest appropriately?

Disclose conflicts in writing and seek guidance (A) Signup and view all the answers

What are indirect interests under the NNPC Limited Code of Conduct?

Board members or employees having control over an organization with business relations to NNPC Limited (B) Signup and view all the answers

What is the expectation regarding relationships with contractors and suppliers as per the NNPC Limited Code of Conduct?

Avoid influencing business decisions made on behalf of NNPC Limited through relationships with contractors and suppliers (A) Signup and view all the answers

What must Board members and employees do in relation to decision-making related to conflicts of interest?

Avoid participating in decision-making related to the conflict (B) Signup and view all the answers

How should employees conduct their relationships as per the NNPC Limited Code of Conduct?

Conduct relationships professionally and avoid pressure or inducement of other employees (A) Signup and view all the answers

What is the expectation regarding using position or confidential information for personal gain according to the NNPC Limited Code of Conduct?

Avoid using position or confidential information for personal gain (C) Signup and view all the answers

What is the requirement for annual declarations as per the NNPC Limited Code of Conduct?

Complete annual declarations and disclose potential conflicts of interest (A) Signup and view all the answers

What is the expectation regarding hiring, supervising, managing, or planning careers of relatives according to the NNPC Limited Code of Conduct?

Hire, supervise, manage, or plan careers of relatives with full disclosure and approval from the Relevant Regulatory and Compliance Unit (B) Signup and view all the answers

Study Notes

NNPC Limited has a Code of Conduct that addresses conflicts of interest for Board members and employees.
Direct interests refer to situations where a Board member or employee, or their Close Relatives have a business relationship or ownership in an NNPC Limited business partner or competitor.
Indirect interests refer to circumstances where a Board member or employee, or their Close Relatives/associates, have control over an organization with business relations to NNPC Limited, or stand to profit from the success of such organization.
Perceived interests refer to circumstances where a Board member, employee or their Close Relatives/associates appear to be prejudiced or stand to benefit from the outcome of a decision.
All NNPC Limited Employees are expected to declare potential conflicts of interest.
Employees must avoid conflicts of interest, identify and declare them, and follow guidelines provided by the relevant regulatory and compliance unit.
Conflicts of interest cases can be reported through the Relevant Regulatory and Compliance Unit or Human Resources Department.
Employees must disclose any conflicts of interest and avoid participating in decision-making related to the conflict.
Guidelines to avoid conflicts of interest include ensuring decisions do not create conflicts, disclosing conflicts in writing, completing annual declarations, seeking guidance, conducting relationships professionally, and avoiding pressure or inducement of other employees.
Employees must not use their position or confidential information for personal gain, nor hire, supervise, manage or plan careers of relatives, nor apply pressure to influence decisions in their favor.
Employees must ensure their relationships with contractors and suppliers do not influence business decisions made on behalf of NNPC Limited.

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Description

Test your knowledge about conflict of interest in business with this quiz. Learn about the impact of undisclosed conflicts of interest on companies and employees.