Conflict of interest
Download
1 / 16

Conflict of Interest - PowerPoint PPT Presentation


  • 77 Views
  • Uploaded on
  • Presentation posted in: General

Conflict of Interest. State Ethics Commission. Conflict of Interest. Person A has role X regarding issues Q X requires competent/objective judgment regarding Q A’s having X thereby justifies others (B) to rely on A regarding Q

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha

Download Presentation

Conflict of Interest

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Conflict of Interest

State Ethics Commission


Conflict of Interest

  • Person A has role X regarding issues Q

  • X requires competent/objective judgment regarding Q

  • A’s having X thereby justifies others (B) to rely on A regarding Q

  • A (actually, latently, potentially) is subject to influence, loyalties, or other interests tending to make A’s competent objective judgment in X regarding Q less likely to benefit B than A’s occupying X justifies B in expecting.

(see Conflict of Interest in the Professions by Michael Davis, portions here from Davis’ work)


Bottom Line

  • a = personal interest (usually financial benefit/competition detriment)

  • b = official duty/public interest

  • c = objective, professional, or independent judgment

    Can a + b = c ?

    If not, seek a remedy


Conflict of Interest

  • Any situation in which an individual or corporation (either private or governmental) is in a position to exploit a professional or official capacity (role) in some way for their personal or corporate benefit (role).

  • Therefore, conflict of interest = conflict of roles


Conflict of Interest

  • Having a conflict of interest is not, in and of itself, evidence of wrongdoing

  • For many professionals, it is virtually impossible to avoid conflicts of interest from time to time

  • It can, however, become a legal matter if an individual tries influencing the outcome of the decision for personal benefit (a breach of the Duty of Loyalty) – see N.C.G.S. 138A-12 and 138A-36.


Conflict of Interest

  • A conflict of interest may exist even if there are no improper acts as a result (“Conflict of Roles” and Conflict of Interest)

  • A person with two roles (e.g. a stockholder and government official) may experience situations where those two roles conflict

  • Having two roles is not illegal, but the differing roles may provide an incentive for improper acts in some circumstances

  • The conflict can be mitigated- but it still exists


The Ethics Act and Types of Conflicts of Interest

  • Self-dealing: in which public and private interests compete, if not collide

  • Outside employment: in which the interests of one job contradicts or competes with another

  • Family interests: in which a spouse, child, or other close relative is employed or where goods or services are purchased from said relative


Conflicts of Interest

  • Other improper acts that are sometimes classified as conflicts of interest are probably better classified otherwise

    • Accepting bribes can be classified as corruption

    • Unauthorized disclosure of confidential information, in itself, should not be considered conflict of interest

    • Use of government or corporate property or assets for personal use is fraud


Ways to Mitigate Conflict of Interest

  • The best way to handle conflicts of interest is to avoid them entirely

  • Short of avoiding conflicts of interest, the best way to deal with them is one or more of the following (mitigation) measures…


Ways to Mitigate Conflict of Interest(see 138A-2; 15; especially 36 [Public Servants and Official Actions])

  • Disclosure or “remedies”:

    • Severity of Conflict of Interest:

      • Likelihood that professional judgment will be influenced, or appear to be influenced, by the secondary interest, and

      • The seriousness of the harm or wrong likely to result from such influence or its appearance (see 138A-36 and Article 3 [138A-21-27:SEI])


Ways to Mitigate Conflict of Interest

  • Recusal

    • To minimize any conflict, the board member should not participate in any way in the decision, including discussions

  • Third-party evaluations

    • The cure (rules/law) can create difficulties in matching the rule to the great variety of conflicts of interest

    • A response to the common claim that ethics cannot be legislated: morality and law overlap/interact in many mutually reinforcing ways, especially with Conflict of Interest (appearance, potential, actual), as discussed in N.C.G.S. 138A: “The State Ethics Act”


Failure to Recognize Conflict of Interest and Act Upon It May Become Felonious

The courts have interpreted “honest services” to include honest and impartial government, and a general duty on the government official to act out of loyalty, honesty, independence, impartiality, and integrity.

Accordingly, the public has a right to have its public officials perform their duties free from improper influences, corruption, fraud, deceit, self-enrichment, self-dealing, and conflicts of interest.


Failure to Recognize Conflict of Interest and Act Upon It May Become Felonious

The taxpayer, the media, and government leaders are paying attention- so should we.

These federal statutes, which predate The Ethics Act but whose potential applications are made the more probable, are the ones under which a former Council of State officer, a U.S. Congressman from North Carolina, a former N.C. legislator, and a former board member were recently convicted.

The Congressman is serving a four-year prison term, and the former Commissioner is facing a maximum of 20 years pursuant to the federal and state violations.


Remember

Conflict of interest consists of a set of conditions by which professional judgment concerning a primary interest (e.g. patient’s welfare) tends to be unduly influenced by a secondary interest (e.g. financial gain); with a board, the primary interest is the business, mandate, or responsibility of the board, being influenced by a board member’s secondary (individual) interest.


Bottom Line (again)

  • a = personal interest (usually financial benefit/competition detriment)

  • b = official duty/public interest

  • c = objective, professional, or independent judgment

    Can a + b = c ?

    If not, seek a remedy


The Trust Test

Would stakeholders (“relevant others”) trust my judgment if they knew of my conflict of roles/conflict of interest?

It is easier to see Conflict of Interest in others than yourself; so, discuss with others and promote/act with transparency: This is the goal of the Statement of Economic Interest

(Article 3, SGEA)

(from Michael McDonald, Chair, Department of Applied Ethics, University of British Columbia)


ad
  • Login