Preventing perceived
or actual conflict of interest?
Preventing other
shades of grey, e.g. entertainment
and gambling, etc. ?
Putting oneself
into an obligatory position, e.g. indebtedness?
Conflict
of interest is a situation in which an officer's
"private interest" interferes with
the proper discharge of his duties.
"Private interest"
include financial and other interests of
the professional himself, his family or
other relations, his friends, the clubs
and associations of which he is a member,
any person with whom he has frequent social
gatherings or to whom he owes a favour or
is obligated in any way.
Different
dimensions of conflict of interest
Actual
conflict of interest - it occurs when
the professionals' actions and decisions are
under the influence of their "private interest".
¡P
Perceived
conflict of interest - it occurs when
the professionals' actions and decisions,
as perceived by the public, are under the
influence of their "private interests". Unless
the professionals concerned can take steps
to avoid such perception, they may be subject
to public criticism.
Problems
arising from conflict of interest
It is
important to note that an actual conflict
of interest often involves abuse of authority
and in some cases even corruption if an advantage
is offered.
A perceived
conflict of interest, though may not involve
abuse of authority, can be as damaging as
an actual one because it undermines public
confidence in the professionals.
A fundamental rule is the need
for a professional to avoid any conflict of interest.
Advice
on avoiding conflict of interest
1.
Stay alert
to situations which may lead to an actual
or perceived conflict of interest
Remember
to put the interests of the employers/clients
before your private interests in discharging
your duties.
Observe
relevant internal guidelines of the company
or the professional code.
Anticipate
the perception of the public or other stakeholders.
Identify
work situations which may give rise to conflict
of interest.
Consult
supervisors or management if in doubt
2.
Take
steps to avoid conflict of interest
Declare
to the company when called upon to deal with
matters which may give rise to conflict of
interest
Refrain
from participating in the discussion and decision
making or dealing with the matters in question.
Entertainment
is defined in the Prevention of Bribery Ordinance
as food or drinks for immediate consumption.
Although it is not considered to be an advantage,
it does not mean that one is free to accept
lavish or unreasonably generous or frequent
entertainment. One should ask whether the
acceptance of the entertainment will impose
an obligation on oneself to do the host a
favour or lead to any actual or perceived
conflict of interest.
Advice
on acceptance of entertainment
Observe
the relevant guidelines of the company.
Avoid
accepting frequent or lavish entertainment
from colleagues, especially subordinates or
people with whom you have business dealings.
Anticipate
the perception of the other stakeholders when
accepting frequent or lavish entertainment
during work situations. ¡P Avoid placing oneself
into a position of obligation.
Report
to the company if people with whom you have
business dealings offer frequent or excessive
entertainment.
Consult
supervisors/management for advice when in
doubt.
Give appropriate
advice to staff if they accept frequent or
lavish entertainment from people with whom
they have business dealings.
A
professional should be prudent in managing
his personal finance. Among the factors landing
one in a difficult financial situation, overspending,
speculative investment beyond one's financial
means and gambling are the major reasons that
are worthy of professionals' attention. He
should also watch out for indebtedness problems
of his staff as the problems may give rise
to corruption or malpractice.
Advice
on indebtedness
Remember
the dire consequences brought about by indebtedness.
Avoid
borrowing money from colleagues, especially
subordinates and people with whom you have
business dealings.
Give appropriate
advice to subordinates with a debt problem,
and report to the management if the problem
persists.
Report
to the management any illegal loan activities
at work.
