A conflict of interest exists when a board member has, or appears to have, interests that are in conflict with their board duties, obligations or interests. Board members have a duty to manage real or potential conflicts of interest appropriately and act with honesty and due care when dealing with such situations.
Making unbiased, independent decisions on behalf of an organisation can be difficult for people who work within small communities, or are involved in a number of organisations and/or businesses within that community. The more connected you are, the more likely you will experience situations where there will be a conflict of interest. Therefore, consciously being aware of these situations and being honest and open about how your organisation manages conflicts of interest, will help you stay accountable and legally compliant.
- Do we have a clear and relevant Conflict of Interest Policy?
- Do all our board members know when to declare a conflict of interest?
- What can we do to strengthen our board’s culture of transparency and accountability?