diff --git a/peps/pep-0772.rst b/peps/pep-0772.rst
index 30023f2998d..404e9dc1ceb 100644
--- a/peps/pep-0772.rst
+++ b/peps/pep-0772.rst
@@ -244,7 +244,9 @@ Conflicts of interest
 ---------------------
 
 No more than two Packaging Council members should be employed by or
-significantly affiliated with the same entity.
+significantly affiliated with the same entity. An entity would be a company,
+a company and its subsidiaries, or another incorporated entity such as a
+non-profit or educational institution with its own mission and goals.
 
 While we trust council members to act in the best interests of Python rather
 than themselves or their employers, the mere appearance of any one company