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".
  
  
• 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.
  

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.
  
  
• 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.