Addressing Conflict of Interest - Essay Example

The underlying conflict could be addressed in differentiated ways, relative to all the parties involved.

The directors’ affiliation with organizations that stood to benefit from the operations undertaken by Enron gave them an opportunity to reap benefits from two sides. To address the underlying conflict of interest, the need to mainstream management is vital. Before directors are installed, there it would be essential to evaluate their relations with other organizations. The establishment of direct links between potential directors and other organizations should disqualify their installation. Investors should also undertake independent evaluations and assessments that relate to their preferred companies. In so doing, they can choose to uphold or ignore the recommendations made by auditors, business analysts, business consultants, or stockbrokers (Dharan & Bufkins, 2004).

Directors, auditors, business analysts, business consultants, and stockbrokers work in the best interest of both the shareholders and the organizations that award them service contracts. In the process, the realization of conflict of interest is relatively high.