Conflict of Interest and the Talmud

A core value of Judaism is leading an ethical life. The Talmud, an authoritative source on Jewish law and tradition, has a number of discussions that deal with honesty in business and decision-making. One motive that can cause individuals to be unscrupulous is the presence of a conflict of interest. This paper will define, discuss, and review five Talmudic concepts relevant to conflict of interest. They are (1) Nogea B’Davar (being an interested party), (2) V’hiyitem N’keyim (behaving to ensure that one is above suspicion) (3) Lifnei Iver (placing a stumbling block before the blind), (4) Shokhad (accepting a bribe), and (5) Geneivat Da’at (deception and undeserved goodwill). Case examples will be used to apply these Talmudic principles to contemporary business practice. This will include discussion of these Talmudic concepts as it applies to specific contemporary business examples relevant to the boardroom, accounting firms, investment banking, politics, and government. It may be impossible to eliminate all conflicts of interest. However, knowledge and awareness of these Talmudic principles can help individuals in business settings better address the ethical issues that they confront. Joshua Fogel, PhD, is an Assistant Professor in the Business Program of the Department of Economics at Brooklyn College. He is the Business Program’s behavioral scientist. He has an interest in the interface of religion and business ethics and can be contacted at joshua.fogel@gmail.com. Hershey H. Friedman, PhD, is a Professor in the Business Program of the Department of Economics at Brooklyn College. He has interest in business ethics and also the interface of religion and entrepreneurship. He currently is funded with a grant by the Kauffman Foundation to study religion and entrepreneurship.