Can i get some advice?

SPK-250 · 11-07-2006, 12:52 AM

Hello people. I need advice or thoughts regarding a position i'm in. I'm looking at starting my own business in a certain field, and over the last couple of weeks have been scouting around the australian distributors that, distribute the products i will sell. Out of about 5-6 distributors they all sell a different product to each other which is nothing really, but, my partner in life just happens to work at one of the distibutors that i plan to buy from. The problem is that my missus thinks if i buy stuff from the distributor that she works it will,,, jepardise her position with in the company. I seriously think they would be cool with it(g/f's boss') as they are making money off me as a business. My g/f reckons if i do use them then she will just get another job but as it stands she has only been there for 5 months and she really likes it, so i dont want to mess around with that problem. I reckon i will be able to do with the remaining distributors but where she works would make up about 60-70% of my stock anyways.
Hoping someone can guide me to the end of the tunnel on this one.

Cheers.

4.9 EF Futura · 11-07-2006, 11:36 AM

A conflict of interest without a doubt. But that's not necisarrily a bad thing. Conflicts like this arise every day in all facets of business. It's not the conflict itself which will be a problem - it will depend on how the conflict is managed.

There's two parts to managing a conflict like this in the interest of sound governance. Disclosure and managing a conflict.

Disclosure is a must. 100%. If you decide to source product from this supplier then you and/or your GF should disclose this to her boss. Can be anything from a formal declaration to a quick word with her boss "hey, spk-383 is looking to source product a from us".

Dealing with an ongoing conflict will depend on your GF's role within the supplier's business. If she is in a position where pricing could be affected or anything along those lines, then it would be inappropriate for her to excercise such duties when dealing with you. Perhaps someone else could process orders or negotiate prices etc when dealing with you. If this isnt feasible then you may have a situation where the conflict cannot be suitably managed.

However, there is a good chance the conflict is only perceived. If your GF's role has no bearing on your dealings with the supplier, or if there is no possible way for her to influence the transactions - then the conflict is only perceived and this should be brought up at the time when the conflict is disclosed. Let's face it - if she cant "meddle" in the deal, then there's no real issue right?

The following document is focused on the public sector but provides some good general guidance on managing a conflict of interest... basically a formal approach to what i've described here.

http://www.opssc.wa.gov.au/icg/coi/6rs.htm

Is this of any assistance??

phoon · 11-07-2006, 12:07 PM

good reply 4.9 ef

SPK-250 · 11-07-2006, 02:37 PM

Hey yeah thanks for that. My GF handles invoicing so i dont really see that as being a problem. However she seems to think it may be a conflict of interest because she knows sales figures and stuff like that. But like i said at the end of the day they'll be making money of me and considering they will be the supplier and not my direct competition. It would be different if they had the same demographic of purchaser ie the general public. I will marinate on this one for a while longer as to investigate all avenues to go about this the correct way. Thankyou 4.9 EF.