This paper examines one of the key problems of corporate governance – conflict of interest, which is not only widespread but also a complex phenomenon in the activities of modern companies today. Considerable attention is paid to understanding its nature, causes of occurrence and consequences for the functioning of enterprises. Conflicts of interest usually arise in situations when the personal or group interests of individual participants in the management process conflict with the goals of the company, which in turn negatively affects the quality of decision-making, the internal atmosphere and the overall image of the organization. An attempt is made to analyze how the lack of proper control mechanisms and the imperfection of internal policies of companies contribute to the exacerbation of this problem. It is emphasized that timely detection and adequate response to conflicts of interest are an important condition for ensuring transparency, accountability and trust in management structures. This is especially relevant in the context of modern challenges facing business in the context of global competition and growing social responsibility. The paper also compares different approaches to interpreting the concept of conflict of interest in the scientific literature, in particular, it studies the regulatory and legal aspects of regulating this problem both at the national level and within international practices. The role of corporate ethics, internal integrity policies and supervisory bodies in forming an effective system for preventing conflict situations is considered. A special place is given to the issues of transparency of decision-making procedures, participation of independent members of the board of directors and creation of internal audit mechanisms. In addition, the possibilities of implementing corporate agreements as one of the tools for reducing the risks of conflicts between owners and managers are analyzed. It is noted that the formation of a mature corporate culture, based on the principles of openness, accountability and equality of the parties, can be an important factor in increasing the resilience of companies to internal challenges. In conclusion, the author emphasizes the need for a systemic and multi-vector approach to managing conflicts of interest, which includes both legal regulation and practical ethical tools.
A. O. Khrystoliubova (Tue,) studied this question.