self-dealing: meaning, definition, pronunciation and examples
C1/C2Formal, Legal, Business, Financial, Academic
Quick answer
What does “self-dealing” mean?
The unethical or illegal practice of a fiduciary (e.
Audio
Pronunciation
Definition
Meaning and Definition
The unethical or illegal practice of a fiduciary (e.g., a trustee, director, or corporate officer) using their position to benefit themselves at the expense of the organization or party they are supposed to be serving.
Any situation where a person in a position of trust prioritizes their own personal interests over the duties owed to another, creating a conflict of interest. It often involves transactions where the fiduciary is on both sides of a deal.
Dialectal Variation
British vs American Usage
Differences
No significant difference in core meaning or usage. The term is equally prevalent in both UK and US corporate/fiduciary law contexts.
Connotations
Equally pejorative in both dialects. Suggests serious misconduct and potential illegality.
Frequency
Slightly higher frequency in American English due to the prominence of SEC regulations and shareholder activism, but it is a standard term in Commonwealth jurisdictions as well.
Grammar
How to Use “self-dealing” in a Sentence
[Subject] engaged in self-dealing.The [position, e.g., trustee] was accused of self-dealing.The contract was voided due to self-dealing.The law prohibits self-dealing by [fiduciaries].Vocabulary
Collocations
Examples
Examples of “self-dealing” in a Sentence
verb
British English
- The trustee was found to have self-dealt by selling trust property to his wife's company.
- The regulations clearly state that one must not self-deal.
American English
- The CEO self-dealt when he leased corporate property to his own shell corporation.
- Laws exist to prevent officers from self-dealing.
adverb
British English
- He acted self-dealingly, with no regard for the charity's beneficiaries. (Rare/Formal)
American English
- The contract was negotiated self-dealingly, to his exclusive advantage. (Rare/Formal)
adjective
British English
- The self-dealing director faced immediate suspension.
- A self-dealing transaction is voidable at the option of the beneficiaries.
American English
- The investigation uncovered a series of self-dealing schemes.
- Shareholders sued over the board's self-dealing conduct.
Usage
Meaning in Context
Business
Used in corporate governance to describe directors approving deals that benefit their own private companies.
Academic
Analysed in law and business ethics papers concerning agency theory and fiduciary responsibility.
Everyday
Rare in casual conversation; would appear in news reports about political or corporate scandals.
Technical
A precise legal term defining a specific type of prohibited transaction under trust, corporate, or charity law.
Vocabulary
Synonyms of “self-dealing”
Strong
Neutral
Weak
Vocabulary
Antonyms of “self-dealing”
Watch out
Common Mistakes When Using “self-dealing”
- Using it as a countable noun (e.g., 'a self-dealing' – usually incorrect).
- Confusing it with 'insider trading' (which is specific to securities markets).
- Using it in non-fiduciary contexts (e.g., for simple selfishness among friends).
FAQ
Frequently Asked Questions
Not always automatically illegal, but it is presumptively fraudulent or voidable. It can be permitted if fully disclosed, approved by disinterested parties, and proven to be fair. However, it is always a serious breach of ethical duty.
A conflict of interest is a broader situation where personal interests *might* influence duty. Self-dealing is a specific, actionable *act* that exploits that conflict for personal gain. All self-dealing involves a conflict of interest, but not all conflicts lead to self-dealing.
Yes, depending on the jurisdiction and context. In corporate law, it can lead to civil liability (fines, dismissal, repayment). In roles like trustees or public officials, it can constitute fraud, embezzlement, or corruption, leading to criminal charges.
Anyone in a fiduciary position: company directors, officers, trustees, lawyers acting for clients, guardians, agents, partners, and sometimes government officials or union representatives.
The unethical or illegal practice of a fiduciary (e.
Self-dealing is usually formal, legal, business, financial, academic in register.
Self-dealing: in British English it is pronounced /ˌself ˈdiːlɪŋ/, and in American English it is pronounced /ˌself ˈdiːlɪŋ/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “On both sides of the bargain (describes the action)”
- “Feathering one's own nest (related concept, less formal)”
- “A classic case of self-dealing.”
Learning
Memory Aids
Mnemonic
Imagine a SELFish car DEALER who sells a car from the company's stock to himself for £1. That's SELF-DEALING: dealing for your own SELF when you should be acting for others.
Conceptual Metaphor
FIDUCIARY DUTY IS A SACRED TRUST / SELF-DEALING IS BETRAYAL OF TRUST. The fiduciary is metaphorically a guardian; self-dealing is the guardian stealing from the vault they were sworn to protect.
Practice
Quiz
Which of the following scenarios BEST exemplifies 'self-dealing'?