ConflictofInterest.pptVIP

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. 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