Conflict of interest policy template
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Use this model conflict of interest policy to outline the rules regarding conflict of interest and the responsibilities of employees and the company in resolving any such discrepancies.
This policy has three parts: an 'overview' that explains what it's about, 'scope' which details who it applies to, and 'general principles' that list the main rules it follows.
Why this policy is necessary
A conflict of interest policy is a set of guidelines and procedures that an organisation establishes to ensure that its employees, officers, directors, and other stakeholders act in the best interests of the organisation and avoid any conflicts between their personal interests and those of the organisation.
The policy outlines the types of conflicts of interest that may arise, such as financial interests, family relationships, or other personal connections, and provides specific steps for employees to disclose any potential conflicts of interest. It may also include guidelines for addressing conflicts of interest, such as recusal from decision-making or seeking independent advice.
The purpose of a conflict of interest policy is to promote transparency, integrity, and accountability in organisational decision-making and to protect the organisation's reputation and financial well-being. By having a clear policy in place, organisations can prevent or mitigate the negative effects of conflicts of interest on their operations and relationships with stakeholders.
Specifications
5 mins
292 words, 2 pages A4
1 July 2024
Conflict of interest
Overview
This policy outlines the rules regarding conflict of interest and the responsibilities of employees and the company.
Scope
This policy is applicable to all employees of [company name].
General principles
The relationship of the company with its employees should be based on mutual trust. As the company is committed to preserve the interests of people under its employment, it expects them to act only towards its own fundamental interests.
Conflict of interest may occur whenever an employee's interest in a particular subject may lead them to actions, activities or relationships that undermine the company and may place it to disadvantage.
Types of conflict
- Employee's ability to use their position with the company to their personal advantage
- Employees engaging in activities that will bring direct or indirect profit to a competitor
- Employees owning shares of a competitor's stock
- Employees using connections obtained through the company for their own private purposes
- Employees using company equipment or means to support an external business
- Employees acting in ways that may compromise the company's legality (e.g. taking bribes or bribing representatives of legal authorities)
In general, employees are advised to refrain from letting personal and/or financial interests and external activities come into opposition with the company's fundamental interests.
You should not, directly or indirectly, engage in, or have any interest, financial or otherwise, in any other business enterprise which interferes or is likely to interfere with your independent exercise of judgement in [Company]'s best interest.
Should you be in doubt as to whether an activity involves a conflict, you should discuss the situation with your manager.
In cases when a conflict of interest is deliberately concealed or when a solution can not be found, disciplinary action may be invoked up to and including termination.
This policy [does not] form[s] part of your terms and conditions of employment.
Version: [1.0]
Issue date: [date]
Author: [name, job title]
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