Question

Conflict of Interest address situations and circumstances in which an employee’s personal interest are- or can appear to be in conflict with the organization’s interest” . Is this statement policy or law. Justify your answer explaining difference between policy and law.

Answer 1

The given statement is Policy.

Explanation:

• A conflict of interest arises when an individual becomes untrustworthy because of a clash between self-serving or personal interests and professional responsibilities or duties.

• When an individual makes a decision, which is against the Organization’s welfares, it may lead to a legal consequence.  

• This indicates that it is the Policy of a discrete organization.

Following are the differences between policy and law:

• A policy is that which outlines what an organization is willing to do and what it can achieve for itself as a whole.  

• Laws are set principles, standards, and procedures that must be followed by individuals.  

• Policies can be called a collection of rules that guide any organization. Laws are upheld through the courts. Laws are enforceable in which the policies conform.