Conflict of interest??

[eimanshalash]

I've got two businesses. One is a social enterprise that works with young people and women. The other is a card making business for education purposes.

A project has come up that may involve both companies. But there is a problem. I need to make sure everything is done correctly. Can my commercial business sell to the social enterprise or is this a conflict of interest?

My commercial business has established contacts and can publish card games at a reduced rate. I'd like to be able to cut costs using this method by selling to the social enterprise thereby saving money but also providing the commercial business a small profit.

Is this a conflict of interest?

[eimanshalash]

Anyone have an opinion on this?

I've got to do a proposal soon but want to read other's general opinion.

[Rachael]

I wouldn't say it was a problem as to be honest you are doing what's best for the job as in a lower cost. I would maybe make it clear it's your other company but I personally can't see that you are doing anything wrong. Maybe you could include some quotes that show a higher price to prove that you are the cheapest?

Rachael

[eimanshalash]

Thanks Rachel for your response. I guess I could get quotes elsewhere through the social enterprise and make the comparison with the commercial business.

That's a great idea! Thanks

[Sunee]

It could be seen as a conflict of interest.

Obtain more two quotes from other companies; also, you will need to remove yourself from the Boards decision process (and have this fact minuted).

[Incepto]

Hi Eiman. A bit off topic, but would you mind if we had a quick chat? I have an idea for a card based product, and would like some expert advice!

[eimanshalash]

Originally posted by Sunee
It could be seen as a conflict of interest.

Obtain more two quotes from other companies; also, you will need to remove yourself from the Boards decision process (and have this fact minuted).

Will do. I appreciate all this advice it is really useful to keep me objective as sometimes it gets a bit of a blur! So much is going on so quickly.

[eimanshalash]

Originally posted by RSS
Hi Eiman. A bit off topic, but would you mind if we had a quick chat? I have an idea for a card based product, and would like some expert advice!

Any time RSS...e-mail me at

em u nr o at loopgames dot co dot uk

[eimanshalash]

Originally posted by RSS
Hi Eiman. A bit off topic, but would you mind if we had a quick chat? I have an idea for a card based product, and would like some expert advice!

Did you get my comments RSS? I've not heard back from you so not sure if you've received my e-mail in response to your questions.

[moneyman]

i have several companies that intertrade. there should be no conflict if you follow the basic rules.
1) inform everyone and keep a note of where and when.
2)if it is a large deal try to get someone else to make the decision
3)check competitors to see that you are a "reasonable choice" for supplier. keep checking every now and then.
Keep notes of when and why you made any decision involving both.
4)pay on time, dont let one operation "lend" money to another by paying late or fantastically good terms.

[eimanshalash]

Thanks Moneyman.

The orders are less than £10k so are relatively small. It's hard to work out what the competitors charge as Loop Cards Publishing Ltd, which is the commercial business will be providing full illustration, printing and marketing service for a card game that wouldn't:

a) be provided to small scale publishing card games
b) even if they did they wouldn't accept it as the main company that does do this only publish its own games and no one elses.

But got the issue on keeping records of all communication about the process.