Conflict of Interest

beginner2 min readpolitics · sociology · science · economics · psychology · business

A conflict of interest exists when a source has interests that could compromise its judgment or impartiality. The authors use fossil-fuel advertising to show why incentives matter when checking a claim.

THE IDEA

The Problem in Three Words: Conflict of Interest

What’s the big deal if you don’t notice that the story you just forwarded was an ad from ExxonMobil? To start, these kinds of companies are not in the business of helping humanity or adopting stray cats. Their goal is to make shareholders giddy by increasing profits. Fossil fuel companies may want us to think they’re on the right side of history when it comes to climate change. But actions speak louder than ads. Clean energy investments by big oil companies (“renewable resources” as the Shell ad calls them) represent a sliver, 1 percent, of their yearly capital expenditures, a pittance compared to what they spend exploring and discovering new ways to extract fossil fuels from the earth and sea.19 Shell might not be outright lying in its infographic, but you can bet on one thing: companies are not going to pay for something that casts them in a negative light. The whole point, after all, is to spiff up their image. Instead of having us view Shell as climate change enemy number one, its ads are designed to soften us up, to plant a seed of doubt.20 “Sure, it’s an oil company, but look, maybe it’s really trying.”

Three words explain why we should think hard before accepting what Shell tells us about climate change: conflict of interest. It goes against Shell’s interest to be forthcoming about the harmful effects of fossil fuels. Big oil companies like Shell, ExxonMobil, BP, and the rest “may be a reliable source of information on oil and gas extraction,” writes Harvard professor Naomi Oreskes, but they are “unlikely to be a reliable source of information on climate change.” Why? Simple: “The former is its business and the latter threatens it.”21

When to use it

Evaluating medical advice from a pharmaceutical company about a drug they manufacture.
Reading a product review on a website that is owned by the product's manufacturer.
Assessing a politician's stance on a policy that directly benefits their campaign donors.
Considering a news article from a media outlet that has financial ties to the subject being reported.

FROM THEORY TO EVERYDAY LIFE

In practice

Shell's Renewable Energy Infographic

The authors examine a Shell infographic promoting renewable-energy investments. They cite 1% as a figure for clean-energy spending by major oil companies in the account’s period, not as a verified current figure for Shell alone. Their point is that an advertisement serves the company’s interests and needs comparison with independent evidence.

✳

A MOMENT TO REFLECT

Put it to work.

How can you identify conflicts of interest in the information you encounter daily?
When evaluating advice or claims, what questions can you ask to uncover the source's incentives?
Think of a time when a company's self-interest influenced its messaging. How did that affect your trust in the information?