Thursday, 18 September 2008

Conflicts of interest: Identifying

Just because a member or official has an interest outside their work, it does not necessarily follow that they have a conflict of interest. A conflict of interest only occurs if something arises at work that overlaps with the other interest. 

 The management of conflicts of interest also involves appearances — what an outside observer might reasonably perceive. Most often, what needs to be managed (and be seen to be managed) is the risk of the adverse public perception that could arise from the overlapping interests.  
Sometimes there may be a perception of a conflict of interest where the interests come close but do not actually overlap. It may still be necessary to take some steps to manage these situations. Not taking steps to manage these risks can undermine an entity's reputation.

So in the case of frost fans, a conflict of interest could take many forms, but just because an individual has (for instance) a business interest that would benifit from the installation of frost fans, doesn't mean that a conflict of interest is occuring.
As with anything, appearances are significant. Identifying that a percieved conflict exists and managing that to ensure that there is complete transparency is vital to avoid any question of bias.

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