A conflict of interest occurs when a person or organization has competing interests or loyalties that could compromise their judgment, objectivity, or ability to act in the best interest of one party they’re supposed to serve.
The basic problem: You’re in a position where your personal interests (financial, professional, relational, etc.) might interfere with your duty to act impartially or in someone else’s best interest.
Common examples:
- An engineer who owns stock in a supplier recommending that supplier’s products to their employer
- A government official awarding contracts to their spouse’s company
- A consultant working for two competing companies on similar projects
- An employee moonlighting for a competitor while still employed
Why it matters: Even if you believe you can remain objective, the mere appearance of a conflict can undermine trust and credibility. That’s why the NSPE Code requires engineers to disclose conflicts - the disclosure itself is often as important as avoiding the conflict.
Tip
Key distinction: Having a conflict of interest isn’t necessarily unethical by itself - it’s failing to disclose it or allowing it to improperly influence your decisions that creates the ethical violation. Many conflicts can be managed through transparency, recusal, or getting consent from all affected parties.
Two conflicts of interest, outlined in the BPELSG Code of Professional Conduct are of particular relevance to energy engineers:
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(b)(2) If a licensee has a business association or a financial interest which may influence his or her judgment in connection with the performance of professional services, the licensee shall fully disclose in writing to his or her client(s) or employer(s) the nature of the business association or the financial interest.
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(b)(3) A licensee shall not solicit or accept payments, rebates, refunds, or commissions, whether in the form of money or otherwise, from contractors or suppliers of material, systems, or equipment in return for specifying their products to a client or employer of the licensee.