Conflict of Interest

Conflict of interest policies apply to staff and volunteers of an organization. Board members, for example, are expected to place the interests of the organization ahead of their personal or professional interests. Conflict of interest arises when the personal or professional interests of a Board member are potentially at odds with the best interests of the organization. Conflict of interest is related to

• Ethics
• Public trust
• Public perception
• Effective management of an organization's resources

Council Board and committee members wear many different hats. They are valued in part because of their associations with many organizations in their communities, both on a professional and personal basis. For that reason, it is not unusual for actual or potential conflicts of interest to arise. A poorly managed conflict of interest can result in:

• A loss of public confidence
• A damaged reputation
• Financial loss
• Threat of lawsuits

There is value in taking steps to avoid even the appearance of impropriety. Potential conflict of interest could involve decisions related to family members, agency partnerships (such as shared staff or facilities) or grant applications made by a Board member's organization. A discussion of potential conflict of interest, how to address it when it arises, and the reasons for doing so is a valuable way of raising awareness among Board members and alerting them to the need for a transparent decision-making process.

Resources - Websites and Documents

Conflict of Interest Policy - by enVision.ca

Obligation to the corporation and its members - by boarddevelopment.org

Avoiding Conflict of Interest: Scenarios -Toolkit 1

Sample Conflict of Interest Policies - by United Way of the Alberta Capital Region

Sample #1 and #2 Conflict of Interest Policies - Toolkit 1

Sample Acknowledgment Form - Toolkit 1

Sample Disclosure Form: Potential Conflict of Interest - Toolkit 1