Ethics and Conflict of Interest

I define a conflict of interest as “a situation in which a person, such as a public official, an employee, or a professional, has a private or personal ... Search FacultyofMedicineTheW.MauriceYoungCentreforAppliedEthics|SchoolofPopulationandPublicHealth People GraduateFellowshipinAppliedEthics Teaching&Training Links VisitingScholars Events »FacultyofMedicine»Home»EthicsandConflictofInterest EthicsandConflictofInterest EthicsandConflictofInterest byMichaelMcDonald You’veseentheheadlines,“Politiciancaughtinconflictofinterest”or“professionaldeniesconflictofinterestallegations.”Youprobablywerethankfulthatyouwerenotthesubjectofthenewspaperstory.Butyoualsomayhavewonderedwhatexactlyisaconflictofinterest,whysuchconflictsareethicallysignificant,andwhatyoucandotoavoidbeinginone. Definition Idefineaconflictofinterestas“asituationinwhichaperson,suchasapublicofficial,anemployee,oraprofessional,hasaprivateorpersonalinterestsufficienttoappeartoinfluencetheobjectiveexerciseofhisorherofficialduties.”Therearethreekeyelementsinthisdefinition.First,thereisaprivateorpersonalinterest.Oftenthisisafinancialinterest,butitcouldalsobeanothersortofinterest,say,toprovideaspecialadvantagetoaspouseorchild.Takenbythemselves,thereisnothingwrongwithpursuingprivateorpersonalinterests,forinstance,changingjobsformorepayorhelpingyourdaughterimprovehergolfstroke. Theproblemcomeswhenthisprivateinterestcomesintoconflictwiththesecondfeatureofthedefinition,an“officialduty”—quiteliterallythedutyyouhavebecauseyouhaveanofficeoractinanofficialcapacity.Asaprofessionalyoutakeoncertainofficialresponsibilities,bywhichyouacquireobligationstoclients,employers,orothers.Theseobligationsaresupposedtotrumpprivateorpersonalinterests. Third,conflictsofinterestinterferewithprofessionalresponsibilitiesinaspecificway,namely,byinterferingwithobjectiveprofessionaljudgment.Amajorreasonsclientsandemployersvalueprofessionalsisthattheyexpectprofessionalstobeobjectiveandindependent.Factors,likeprivateandpersonalinterests,thateitherinterfereorappearlikelytointerferewithobjectivityarethenamatteroflegitimateconcerntothosewhorelyonprofessionals—betheyclients,employers,professionalcolleagues,orthegeneralpublic.Soitisalsoimportanttoavoidapparentandpotentialaswellasactualconflictsofinterests.Anapparentconflictofinterestisonewhichareasonablepersonwouldthinkthattheprofessional’sjudgmentislikelytobecompromised.Apotentialconflictofinterestinvolvesasituationthatmaydevelopintoanactualconflictofinterest. Leadingexamples Withthisinmind,considerthefollowingtypesoftypicalconflictsofinterestlistedbyCanadianpoliticalscientistsKenKernaghanandJohnLangfordintheirbook,TheResponsiblePublicServant.Theylistsevencategories: [1]Self-dealing. Forexample,youworkforgovernmentanduseyourofficialpositiontosecureacontractforaprivateconsultingcompanyyouown.Anotherinstanceisusingyourgovernmentpositiontogetasummerjobforyourdaughter. [2]Acceptingbenefits. Briberyisoneexample;substantial[nontoken]giftsareanother.Forexample,youarethepurchasingagentforyourdepartmentandyouacceptacaseofliquorfromamajorsupplier. [3]Influencepeddling. Here,theprofessionalsolicitsbenefitsinexchangeforusingherinfluencetounfairlyadvancetheinterestsofaparticularparty. [4]Usingyouremployer’spropertyforprivateadvantage. Thiscouldbeasblatantasstealingofficesuppliesforhomeuse.Oritmightbeabitmoresubtle,say,usingsoftwarewhichislicensedtoyouremployerforprivateconsultingworkofyourown.Inthefirstcase,theemployer’spermissioneliminatestheconflict;whileinthesecond,itdoesn’t. [5]Usingconfidentialinformation. Whileworkingforaprivateclient,youlearnthattheclientisplanningtobuylandinyourregion.Youquicklyrushoutandbuythelandinyourwife’sname. [6]Outsideemploymentormoonlighting. Anexamplewouldbesettingupabusinessonthesidethatisindirectcompetitionwithyouremployer.Anothercasewouldbetakingonsomanyoutsideclientsthatyoudon’thavethetimeandenergytodevotetoyourregularemployer.Incombinationwith[3]influencepeddling,itmightbethataprofessionalemployedinthepublicservicesellsprivateconsultingservicestoanindividualwiththeassurancethattheywillsecurebenefitsfromgovernment:“Ifyouusemycompany,Iamsurethatyouwillpasstheenvironmentalreview.” [7]Post-employment. Hereadiceysituationcanbeoneinwhichapersonwhoresignsfrompublicorprivateemploymentandgoesintobusinessinthesamearea.Forexample,aformerpublicservantsetsupapracticelobbyingtheformerdepartmentinwhichshewasemployed. Sometests Howdoyoudetermineifyouareinaconflictofinterest,whetheractual,apparent,orpotential?Thekeyistodeterminewhetherthesituationyouareinislikelytointerfereorappeartointerferewiththeindependentjudgmentyouaresupposedtoshowasaprofessionalinperformingyourofficialduties.Agoodtestisthe‘trusttest’:wouldrelevantothers[myemployer,myclients,professionalcolleagues,orthegeneralpublic]trustmyjudgmentiftheyknewIwasinthissituation.Trust,inmyopinion,isattheethicalheartorcoreofthisissue.Conflictsofinterestinvolvetheabuse,actualorpotential,ofthetrustpeoplehaveinprofessionals.Thisiswhyconflictsofinterestnotonlyinjureparticularclientsandemployers,buttheyalsodamagethewholeprofessionbyreducingthetrustpeoplegenerallyhaveinprofessionals. Infact,the‘trusttest’suggestsoneverygoodwayofdealingwithaconflictofinterest:revealyourprivateinterestinthemattertorelevantparties.Oftenifweletothersknowwhatmightbeinfluencingourjudgment,theycanbeontheirguardandnotcaughtunaware. Butsometimesitisn’tenoughtoknowthatthereisaparticularprivateinterestinfluencingaprofessional’sjudgment;theclient,employer,etc.expectsthattheprofessionalwillstayoutofsuchsituations.Sothesecondwaytoavoidconflictsofinterestsistoabsentyourselffromdecisionmakingoradvicegivingifyouhaveaprivateinterest.Sointhecaseofpotentialself-dealing,theconscientiousprofessionalwillsaythatshecan’tbeinvolvedinasituationwheresheisbothbiddingonagovernmentcontractanddecidingasapublicservantwhoisawardedthecontract.Shewilleitherstepasideandcompletely[and,Imean,completely]absentherselffromdeterminingwhogetsthecontractorrefrainfrombiddingonsuchcontractsinthefirstplace—whichisprobablythewisestcourseofaction. Afinalword Itmaytakesomeskillandgoodjudgmenttorecognizingthatyouareinaconflictofinterestsituation.Thisisbecauseprivateandpersonalinterestscancloudaperson’sobjectivity.Soitmaybealoteasiertorecognizewhenothersareinaconflict,thanwhenyouare.Thissuggeststhatitmaybeusefultotalktoatrustedcolleagueorfriendwhenyouareindoubt. Butonceyourecognizethatyouareinorareheadedintoaconflictofinterestsituation,theethicalresponsesarestraightforward:getoutofthesituation,or,ifyoucan’t,makeknowntoallaffectedpartiesyourprivateinterest.Theseresponseswillpreservethetrustessentialtoprofessionalobjectivity. Itisimportanttorealizethatavoidingconflictsofinterestisonlyonepartofbeingaconscientiousprofessional.Anotherpartisthedifficulttaskofmakingchoiceswhentheethicsofthesituationaren’tclearorwhentherearegoodmoralreasonsforactingindiametricallyopposingways.Thisistypicalinthecaseofwhistleblowing,inwhichadutyofloyaltytoaclientoremployercounselsconfidentialitybutthisconflictswithadutytowarnthepublicofaseriousharmordanger.