Manager of branch conflict of interest
catherinetnc
79 Posts
Here's a good one:
Rather than contract with a cleaning service, manager of branch (small manufacturing facility) decides to form a "cleaning company" with her assistant and clean the branch themselves.
Here are some problems I see:
- obvious conflict of interest - branch manager is buyer of service and provider of service
- not bonded and insured - worker's comp claim waiting to happen
- inappropriate boundaries with subordinate (how can you be objective about someone you have formed a company with outside of primary job)(grey area - so hard to police)
Any others?
The only prohibition our company has to outside employment is if it conflicts with job at our place.
I'm sure these ladies do a good job cleaning, but this doesn't pass the smell test. Any of you had this experience?
Thanks for any comments -
Catherine
Rather than contract with a cleaning service, manager of branch (small manufacturing facility) decides to form a "cleaning company" with her assistant and clean the branch themselves.
Here are some problems I see:
- obvious conflict of interest - branch manager is buyer of service and provider of service
- not bonded and insured - worker's comp claim waiting to happen
- inappropriate boundaries with subordinate (how can you be objective about someone you have formed a company with outside of primary job)(grey area - so hard to police)
Any others?
The only prohibition our company has to outside employment is if it conflicts with job at our place.
I'm sure these ladies do a good job cleaning, but this doesn't pass the smell test. Any of you had this experience?
Thanks for any comments -
Catherine
Comments
Stop the practice immediately. You have a ton of exposure ranging from FLSA to WC and general liability.
Gene
Can always count on you for good advice -
thanks!
Catherine
We have an "Outside Employment and Personal Business Activity" that I would be happy to share with you. e-mail: [email]paulknoch@cbcc.net[/email]
We created this policy a few years ago when our rec center director wanted to start his own personal fitness business using our equipment.
It might be helpful as a starting point if you don't already have such a policy.
No employee of XYZ shall have a financial interest, direct or indirect, in any contracts entered into by XYZ during employment tenure or for one year thereafter. No employee shall be employed in any capacity by a contractor doing business with XYZ. Employees are encouraged to obtain written opinions from XYZ prior to engaging in any act which could be questionable as a violation of this section.
I removed industry-specific prohibitions. We also address gifts and gratuities in the next subsection.
Our CoC and Handbook pretty much track one another in many subjects -
Thanks-
Catherine
I do not have a code of conduct policy. Would one or the other be willing to share what is contained in this policy?
It may help with my situation with the disagreements between my foreign and US managers I have been trying to settle.
Thanks for your help.
Shirley
CoC, among other things, are required by Sarbanes-Oxley (Enron, Worldcom reaction law) - even for private companies!
Under my name on this post click the second icon and send me your address. I'll get it in the mail to you.
AIM International
3923 E. Flamingo Ave.
Nampa, ID 83687
Thank you I really appreciate the help. I have not spent that many years in HR and I am still working on policies, precedures and such.
Shirley