Conflicts
of Interest Policy Guidelines
Introduction
Conflict of Interest (COI) arises
when the exercise of a public
duty is influenced, or can be seen to be influenced, by a private
interest. COI usually arises without
fault or fraudulent intent. However, even
without improper
intentions, COI can have a detrimental effect
on organizational
performance and reputation. They create
a risk for the organization which should be managed, like all other risks. Uganda
National Association of Private Schools and Institutions (UNAPSI) is
responsible for promoting and setting high standards of conduct across the
private schools industry therefore the conduct of its Board is likely to come
under close scrutiny.
Overview
UNAPSI and its staff are entitled
to manage their affairs in privacy, the regulatory nature of the organization
must be carried out in an environment, which is free from any suggestion of
improper conduct. Those providing information must be confident that it will be
properly handled.
These guidelines are therefore
necessary to give UNAPSI and its staff a framework within which to deal with
conflicts of interest and other incidental matters. The guidelines are intended
to protect UNAPSI against any suggestions that regulatory decisions have been
influenced by personal interests and that planning decisions of UNAPSI are made
relying on information obtained by virtue of their connection with the private
schools industry and access to non-public information.
Conflicts
of interest (COIs) can arise for employees at all levels of seniority and in
every area of work in an organization. They are an inevitable fact of
organizational life and they are not in themselves a sign of wrongdoing, but
they create risks which should be identified and managed. However, when these
risks are not appropriately addressed, organizational performance and
reputation can be seriously compromised, and the effects can be significant for
the organization and for the individuals concerned.
These
guidelines outlines the obligations on members and employees to identify,
report, and address conflicts of interest (COIs), and to subject them to
ongoing monitoring. The policy also identifies the role of directors to take
steps to address risks of COI in relation to their staff.
The
conflict of interest policy guidelines includes practical resources to
assist members and managers in identifying, managing and monitoring COIs.
Private
interests include both financial and non-financial interests, and can include
the interests of family members and close friends or associates. They can be
positive or negative interests - personal enmity towards someone can be just as
relevant as loyalty to them. The public duty of all employees of the organization
(both in Service and the retired) and executives of private school councils
includes the obligation to perform all duties in accordance with public sector
values, which include accountability,
integrity and impartiality. A conflict therefore
arises if a private interest might undermine an executive’s ability to perform
a particular role in accordance with these values, whether or not the outcome
of the task or function is affected; an executive’s benevolent intention does
not mean that risks of perceived COI can go unaddressed.
While
COI can lead to corruption and fraud, it mostly arises innocently and
independently of any fraudulent intent and should be managed with this in
mind—with transparency, consistency and without favouritism or exception.
COI
can be actual, potential or perceived. A potential COI
refers to circumstances where it is foreseeable that a COI may arise in future
and steps can be taken now to mitigate any risk. A perceived COI arises
where a reasonable person might think that an executive could be unduly
influenced by a private interest, even if the executive is confident of their
own objectivity. It is particularly important for executives s to address risks
of perceived COI because they are the most likely to be overlooked or
underestimated.
An
important consideration when identifying and managing COI is whether reasonable
and fair minded people would consider that a private interest is likely to
influence the public duty to the extent that it would create a risk for the organization
or undermine public sector values. Being able to identify these risks will
assist executives in taking appropriate steps to protect the public interest.
Because
COI is inherently subjective and personal, individuals can be prone to
underestimating or misrepresenting the extent of the influence a private
interest might have. It is therefore critical that managers are involved in
assisting executives to assess and address risks associated with COI.
Poor management of COI can have a
serious effect on the organization, including:
• Poor substantive outcomes arising from decisions in which
merit is compromised
• Loss of stakeholder confidence and the erosion of proper
processes
• Considerable expense and loss of efficiency to remedy
actions which are tainted by undisclosed
or improperly managed COI
• Loss of members trust in management
• Loss of public confidence in government.
Objectives
The
purpose of these COI Policy Guidelines is to enable the organization to manage
COI risks effectively by identifying:
• the principles which inform the responsible management of
COI risks in the organization
• the responsibilities of all organization executives for the
management of COI risks
• the steps executives can take to manage COI risks
• key resources available to assist executives to meet their
responsibilities for managing COI risks.
Principles
The
following four principles underpin the organization’s management of risks of
COI:
• Protecting the public interest through upholding public
sector values
• Supporting transparency and accountability
• Promoting individual responsibility for integrity and
impartiality
• Developing an organizational culture which encourages
effective management of COI.
Responsibilities
All
executive officers have a responsibility to avoid any COI that may affect their
public duty. Where a conflict is identified, reasonable steps must be taken to
address it in order to protect the public interest.
The
primary basis for this obligation is the Code
of Conduct for the private education Sector, which is binding on
all private schools council executives. Other instruments also impose
obligations on particular groups within the organization, and this policy gives
effect to those obligations.
All
organization executives, including members of the private schools council, are
responsible for:
• Being aware of their obligations to avoid and address COI
• Continually assessing their private interests and public
duties in order and identify whenever they are subject to a COI
• Reporting identified COI to their manager, (or in certain
circumstances to the relevant Panel, Committee or Board)
• Assessing the risks related to identified conflicts and
taking reasonable steps to address these risks in accordance with organization
policy and procedures so that the public interest is protected.
Private Schools Council
Private
School Council members who are not executives of the organization (such as
parents) are not bound by the Code of
Conduct for Private Schools Council Executives. However, they are bound
by the Directors’ Code of Conduct and
Guidance Notes.
Relevant
duties under this Code are to:
• Act with honesty and integrity
• Act in good faith in the best interests of the public
entity
• Act fairly and impartially
• Use information appropriately
• Use the position appropriately
• Act in a financially responsible manner
• Exercise due care, diligence and skills
• Comply with the establishing legislation
• Demonstrate leadership and stewardship.
Principals
play a role, as executive officers of Private School Councils, in advising Private
School Council Executives about appropriate steps they should take to ensure
responsible management of risks of COI. Executives should be referred to the
principles and processes outlined in this policy for guidance.
In
addition, it is recommended that regulation of the Education and Training requires that if a member of the
school council or a member of his or her immediate family has any direct COI
(including a pecuniary interest) in a subject or matter under discussion at a
school council meeting, that member:
• must not be present during the discussion unless invited to
do so by the person presiding at the meeting
• must not be present when a vote is taken on the matter
• may be included in the quorum for that meeting.
Obligation to Incorporate COI Management in Specific
Circumstances
The
management of COI in accordance with the organization policy should be
incorporated into the work of the following groups, which are formed in the organization
from time to time:
The
policy guidelines contain resources which can assist employees in
applying the above process to real-world situations. Given the variety of circumstances in which
COI may arise, the organization also recognizes that high-level principles or
generic examples may be inadequate guidance for resolving COI risks in specific
circumstances. For this reason, business units throughout the organization are
advised to identify clear expectations for executives about how the COI policy
should apply to discrete situations. The resources in the COI guidelines can be
adapted for this purpose.
Specific Guidelines
1. Identify a conflict
• Could your private interests (financial and
non-financial) unduly influence your public duty?
• Could a conflict be reasonably perceived, even where none exists?
High risks of
COI
COI issues
can arise
in relation
to almost
any area
of work
and can
affect most, if not all,
employees. The following are as are prone
to risk and therefore warrant particular attention:
• Recruitment
and selection
• Tendering
and procurement
• Regulation
and grant approval
• Other employment (eg. tutoring,
conducting a private business)
• Gifts,
benefits, hospitality
• Complaints management and disciplinary investigations
2. Address the risks
Report any conflict to
your manager. Then take
reasonable steps to mitigate any
risks to the public interest which might arise from the conflict of
interest. Further management strategies include:
• Registering the private interest with the relevant
Committee, Board, or in another open forum for accountability and transparency.
• Restricting your involvement in the public duty
• Recruiting a disinterested third party to oversee part of
the public duty (such as accepting a selection panel’s decision in your place)
• Removing yourself from all responsibilities
in relation to the public duty
• Relinquishing your private interest (such as selling financial interest)
• Resigning your public office (temporarily or permanently)
Executives must
• Be aware
of their obligations under the organization’s COI policy.
• Continuously assess their private interests
and public duties to identify
actual, potential or perceived COI
• Report identified
COI to
their manager/principal. (Disclosing
to peers is rarely sufficient).
• Assess the risks
of an
identified COI and take reasonable steps to
protect the public interest
3. Monitor
Review the situation periodically
and when circumstances change:
identify new conflicts and consider whether
existing management strategies
are still sufficient.
COI may be actual,
potential or perceived
Potential COIs are conflicts that may arise in future. For
example, if you can foresee that a family member’s company could
reasonably be expected to tender for a contract for which you are planning the
terms of reference, you have a situation of potential COI which can, and in
many cases must, be addressed. Reporting
potential COIs as early as possible also often avoids future complications.
Perceived COI are situations where a third party might consider that an employee
is subject to an actual COI. For
example, when a principal removes herself from a selection panel which selects
her spouse for a role in the school, a perception of a conflict might still
exist if she does not also remove herself from accepting the panel’s preferred candidate, since all the panel
members are her subordinates.
