2 weeks Ago
When we hear the phrase "conflict of interest," many of us picture shady backroom political deals. But in truth, conflicts of interest are just as rampant in the world of business, especially in Bangladesh's fast-growing economy, where family ties and personal connections often blur professional lines. At its core, a conflict of interest occurs when someone in a position of trust, like a CEO, MD, chairman or director, uses their power for personal gain or to benefit friends and family, rather than acting in the best interest of the organisation.
In boardrooms and executive offices across Bangladesh and beyond, familiar patterns emerge: top executives appointing relatives and friends to key roles, not necessarily because they are the most qualified, but because they are "their person". The problem is not that family and friends are always unqualified, some may be perfectly capable. But far too often, merit takes a backseat to personal connections.
Nepotism, favouritism, cronyism -- whatever you call it -- erodes the foundations of a healthy business environment. In a country like Bangladesh, where personal relationships are deeply rooted in the culture, trust is often built through family or community ties. That can be a strength, but it can also open the door to serious conflicts of interest.
And nepotism is only one face of the problem. CEOs and directors may award contracts to companies owned by friends or relatives, even when better bids exist. They may greenlight investments or partnerships not based on merit, but personal benefit.
At a glance, these decisions may seem harmless or even justifiable. But over time, such compromises create a culture of mediocrity, resentment, and eventual failure. Talented individuals leave, stakeholder confidence crumbles, and companies underperform.
These issues rarely stay behind closed doors. In today's hyper-connected world, reputations built over decades can collapse overnight. So how do good leaders protect their organisations from this silent erosion? First and foremost, awareness is key.
Leaders must ask themselves: Am I making this decision in the company's best interest, or am I influenced by personal ties or emotion? It sounds simple, but in practice, it takes real discipline. Second, transparency is non-negotiable. Good CEOs do not make decisions in the dark.
They document them, explain their reasoning, and welcome scrutiny. Clear hiring and procurement processes, fair and merit-based, can protect an organisation. Establishing internal policies on conflicts of interest is also crucial.
Global companies often require disclosure of personal relationships or financial interests that may influence decisions. While such policies are gaining ground in Bangladesh, they are too often treated as box-ticking exercises. Most importantly, ethical leadership must be modelled from the top.
A CEO who plays favourites signals that integrity is optional. But a leader who makes fair, sometimes uncomfortable decisions fosters trust and inspires a culture of meritocracy. Leaders must also be willing to say "no" to undue influence, even from powerful sources.
In Bangladesh, where familial and social obligations carry great weight, rejecting a relative's or ally's request can be hard. But true leadership demands that kind of courage. If Bangladesh wants to continue its sustainable economic growth and become a true regional powerhouse, we must confront conflicts of interest head-on.
We can no longer afford to shrug off nepotism and favouritism as "the way things are done." We deserve better and so do the countless young, talented professionals whose futures are being blocked by an outdated system of personal gain. Mamun Rashid is an economic analyst who has worked with global corporations for more than 35 years.
When we hear the phrase "conflict of interest," many of us picture shady backroom political deals. But in truth, conflicts of interest are just as rampant in the world of business, especially in Bangladesh's fast-growing economy, where family ties and personal connections often blur professional lines. At its core, a conflict of interest occurs when someone in a position of trust, like a CEO, MD, chairman or director, uses their power for personal gain or to benefit friends and family, rather than acting in the best interest of the organisation.
In boardrooms and executive offices across Bangladesh and beyond, familiar patterns emerge: top executives appointing relatives and friends to key roles, not necessarily because they are the most qualified, but because they are "their person". The problem is not that family and friends are always unqualified, some may be perfectly capable. But far too often, merit takes a backseat to personal connections.
Nepotism, favouritism, cronyism -- whatever you call it -- erodes the foundations of a healthy business environment. In a country like Bangladesh, where personal relationships are deeply rooted in the culture, trust is often built through family or community ties. That can be a strength, but it can also open the door to serious conflicts of interest.
And nepotism is only one face of the problem. CEOs and directors may award contracts to companies owned by friends or relatives, even when better bids exist. They may greenlight investments or partnerships not based on merit, but personal benefit.
At a glance, these decisions may seem harmless or even justifiable. But over time, such compromises create a culture of mediocrity, resentment, and eventual failure. Talented individuals leave, stakeholder confidence crumbles, and companies underperform.
These issues rarely stay behind closed doors. In today's hyper-connected world, reputations built over decades can collapse overnight. So how do good leaders protect their organisations from this silent erosion? First and foremost, awareness is key.
Leaders must ask themselves: Am I making this decision in the company's best interest, or am I influenced by personal ties or emotion? It sounds simple, but in practice, it takes real discipline. Second, transparency is non-negotiable. Good CEOs do not make decisions in the dark.
They document them, explain their reasoning, and welcome scrutiny. Clear hiring and procurement processes, fair and merit-based, can protect an organisation. Establishing internal policies on conflicts of interest is also crucial.
Global companies often require disclosure of personal relationships or financial interests that may influence decisions. While such policies are gaining ground in Bangladesh, they are too often treated as box-ticking exercises. Most importantly, ethical leadership must be modelled from the top.
A CEO who plays favourites signals that integrity is optional. But a leader who makes fair, sometimes uncomfortable decisions fosters trust and inspires a culture of meritocracy. Leaders must also be willing to say "no" to undue influence, even from powerful sources.
In Bangladesh, where familial and social obligations carry great weight, rejecting a relative's or ally's request can be hard. But true leadership demands that kind of courage. If Bangladesh wants to continue its sustainable economic growth and become a true regional powerhouse, we must confront conflicts of interest head-on.
We can no longer afford to shrug off nepotism and favouritism as "the way things are done." We deserve better and so do the countless young, talented professionals whose futures are being blocked by an outdated system of personal gain. Mamun Rashid is an economic analyst who has worked with global corporations for more than 35 years.
.
