Managing Competing Interests

Conflicts of interest represent an increasing problem in organizations, given the expansion of stakeholder concerns, needs and expectations. Existing remedies to address these conflicts largely involve aligning management incentives with the interests of investors, or by recusing parties with special interests from the decision-making effort. Both circumstances depend on a primary stakeholder and decision maker. However, increasingly complex situations involving multiple stakeholders in organizations exist. This added complexity heightens uncertainty that facilitates the pursuit of self-interest. Ironically, a potential remedy may involve ensure the presence of competing conflicts of interest versus trying to minimize them. A case study of military procurement suggests competing interests can mitigate self-interest.