A conflict of interest policy is a set of rules that companies use to ensure that business decisions are based on what’s best for the company—not on an individual’s personal interests. It sets forth expectations, guidelines and limits regarding financial activities and other situations that could create a conflict of interest. This policy also helps protect employees from being put in a position where they must choose between their own interests and those of the company. By creating a clear set of standards, businesses can promote ethical behavior and avoid potential legal disputes.