Understanding Conflict of Interest

A conflict of interest occurs when an individual's personal interests – family, friendships, financial, or social factors – could compromise his or her judgment ... UniversityCompliance,Ethics,andRisk IntegrityStar–April2016 |SeePreviousEditions UCFCompliance&EthicsNewsletter UnderstandingConflictofInterest UnderstandingConflictofInterest Conflictofinterestisacommonissueintheworkplace.Mostofushaveheardsomeonesay,“It’swhoyouknow,notwhatyouknow.”Wehaveheardco-workerscomplainthatamanager’srelativealwaysgetsthebiggestraiseorthebestassignment.Wemighthaveseencolleaguesacceptgiftsfrompotentialvendors.Maybeaco-workerleaveswork20minutesearlyeverydaysoshecangettohersecondjob.Asupervisormaygiveaco-workertimeofffromworktodovolunteerworkormightallowemployeestosolicitdonationsandfundsintheworkplace,whetherfortheGirlScoutsoralocalschoolfunction.Eventhoughthesesituationsareverydifferent,theyallfallundertheheadingof“conflictofinterest.” WhatisaConflictofInterest? Aconflictofinterestoccurswhenanindividual’spersonalinterests–family,friendships,financial,orsocialfactors–couldcompromisehisorherjudgment,decisions,oractionsintheworkplace.Governmentagenciestakeconflictsofinterestsoseriouslythattheyareregulated.Industryorganizations,corporations,anduniversities,includingouruniversity,followthatleadbyincludingconflictsofinterestinourpolicies,regulations,andstandardsofoperatingprocedures.Forouruniversity,wemustfollowFlorida’sCodeofEthicsforPublicOfficersandEmployeesthatincludesstandardsofconductandreportingrequirements. Conflictsofinterestareaclashthatmostoftenoccursbetweenrequirementsandinterests.Varioustypesofconflictsofinterestcanoccurbecauseofthenatureofrelationshipsversusrulesoforganizationsorfederalandstatelaws.Peoplecaneasilybecomebiased(haveanunfairpreference)becauseofsmallthingslikefriendship,food,orflattery,ortheymaybeinfluencedtomakeadecisionbecauseofthepotentialtogainpower,prestige,ormoney.Conflictscanoccurwhenanindividualmakesorinfluencesadecisionanddoessoforsomepersonalgainthatmaybeunfair,unethical,orevenillegal.Theimportantpartiswhatyoudoineachofthosesituations.Doyouallowyourfamily,friendship,financial,orinsideknowledgeaffectyouractions?Ifyoudo,youcouldbeviolatingstatestatuteanduniversitypolicy. Inourworklives,wealsohaveintereststhatcouldinfluencethewaywedoourjobsandthedecisionswemake.Evenifweneveractonthem,theremaybeanappearancethataconflictofinteresthasinfluencedourdecisions.Considerthisexample.Yoursupervisorispromotedtodepartmentdirector.Hisdaughter-in-lawishiredasanewsupervisorwithinthecollegebutisnotreportingtohim.Maybethenewsupervisoristhebestcandidateforthatposition,andmaybethenewdepartmentdirectorhadnothingtodowithherhire.EvenifthishiremetalloftherequirementsunderourEmploymentofRelativespolicy,thesituationappearssuspiciousandemployeesmaythinkthatsomethingwasunfairorunethicalaboutherhire. Transparency(beingcompletelyopenandfrank)becomesimportantwhendealingwithbothactualandpotentiallyperceivedconflictsofinterest.Perceptionhappenswhenanindividualobservessomething(behaviororactivity)andcomestoaconclusion.Perceivingaconflictofinterestdoesnotmakeitaconflictofinterest.Thetruetestofverifyingwhetheramatterisjustapotentiallyperceivedconflictofinterest,oranactualconflictofinterest,isdisclosure. Whenitcomestoconflictsofinterest,appearanceisasimportantasreality.Thisiswhydisclosingconflictsofinterestisimportant.Disclosureistypicallyamoreformalanddocumentedprocessthatmostorganizationshaveadoptedinpolicytoaddressconflictsofinterest.Thedisclosureprocessisintendedtohelptheworkforcebetransparentandaccountablefor(explainorjustify)theiractionsanddecisions.Disclosureofapotentialconflictofinterestdoesnotmakeitanactualconflict,butmayhelpeliminatetheperception.Ontheotherhand,disclosureofanactualconflictofinterestdoesnotremovetheconflict,buthelpsgetitintheopentobeproperlyaddressed.It’simportanttodisclosebothpotentiallyperceivedandactualconflictsofinteresttoallowotherstoevaluatethematterandmakethedecision,ratherthankeepittooneselfandthencreateanethicalorlegalsituation.Theindividualcannotmakethedeterminationastowhetheritisaconflictornotbecauseheorshedoesnothaveanindependentorobjectivepointofview. Whenyouidentifyasituationthatmaybeaconflict,orcouldbeperceivedasaconflict,notifyyoursupervisororUniversityCompliance,Ethics,andRiskatcomplianceandethics@ucf.edu.Theycanhelpadviseyouonhowtoeitherremovetheconflictbyrecusingyourselffromthesituationaltogether,ordevelopamanagementplantomanagetheconflict. FinalPointtoConsider “Whenindoubt,ask”isanoldsayingthatmakesagreatdealofsensewhenworkingthroughconflictsofinterest.Thereisnoharminasking,buttherecouldbeagreatdealofharmtoanindividual,theorganization,orboth,bynotasking.Itisalwaysbesttobetransparentandaccountabletoensureweeliminateeithertheperceivedoractualconflictofinterest.       TheINTEGRITYLINEallowsyoutoreportethicalconcernswithoutthefearofretaliation LearnMore OfficeofEnterpriseRiskandInsuranceManagement 4365AndromedaLoopN. 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