Journal of Water and Sustainable Development

What is an institutional conflict of interest, and why must it be managed?

Document Type : Analytical note

Author

Mohsen Fanoodi

PhD in Climatology, Water and Environmental Research Institute, Ferdowsi University of Mashhad, Mashhad, Iran.

10.22067/jwsd.2026.48838
Abstract
Institutional conflict of interest is one of the most complex yet overlooked challenges facing organizations today. Unlike individual conflict of interest—which concerns the clash between employees' personal interests and their professional duties—institutional conflict of interest arises when the financial or non-financial interests of the organization itself conflict with its core mission, fundamental values, or decision-making processes. Due to its systemic nature, cumulative effects, and the difficulty of detection, this phenomenon is more dangerous and harder to manage than individual conflicts of interest.




















This article examines the nature of institutional conflicts of interest, their dimensions and types, and the consequences of disregarding them, ultimately proposing a framework for the effective management of this phenomenon. The central argument is that managing institutional conflicts of interest is not merely a choice but a strategic imperative for organizational survival and legitimacy in an era of transparency and accountability.





Keywords

Institutional conflict of interest
the organization's inherent mission
transparency
accountability
Subjects
Thompson, D. F. (2009). The challenge of conflict of interest in medicine. Science and Engineering Ethics, 15(4), 449–455. https://doi.org/10.1007/s11948-009-9159-0
World Health Organization. (2016). Framework of engagement with non-State actors (FENSA). World Health Assembly Resolution WHA69.10, Annex, Paragraph 23. Geneva: WHO.
OECD. (2003). Managing Conflict of Interest in the Public Service: OECD Guidelines and Country Experiences, OECD Publishing, Paris, England. https://doi.org/10.1787/9789264107564-en
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Journal of Water and Sustainable Development
Volume 13, Issue 1 - Serial Number 39
Water and Conflict of Interest
Spring 2026

  • Receive Date 22 May 2026
  • Revise Date 26 May 2026
  • Accept Date 05 June 2026

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