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Group 10

Principe, Kathleen
Sianghio, Geminesse
Solis, Ferguie

Conflict of Interest

Conflict of Interest
A particular situation that has the potential to weaken the objectivity of a person because
of the possibility of clash between the persons self interest and the professional interest.

When an individual has the responsibility to represent an individual, theres a tendency to

create a particular conflict or clash between professional obligations and his/her own
personal interests

This arises if the individual tries to perform an obligation

while at the same time trying to achieve personal gain.

A conflict of interest involves risk of benefit and/or bias.

Benefit - a conflict of interest arises when an employee may benefit personally (or appear to
do so) from dealings with an entity or person conducting business , including indirect benefits
such as to family members or businesses with which the person is closely associated.

Bias - financial or other considerations may compromise (or have the appearance of
compromising) the employees objectivity or independent professional judgment in the
discharge of the persons duties and responsibilities.

Is it a Conflict?
Ethics Does the action feel right

Values - Are the actions in alignment with my personal values and those of the institution I

Integrity - Is he/she being honest about all facets of the situation?

Other improper acts considered as of Conflict of Interest

1. Receiving Items of Value/ bribery
2. Receiving Supplemental Compensation
3. Having Unlawful Interest
4. Nepotism
Failure to Recognize Conflict of Interest and Act Upon It May Become Felonious
The courts have interpreted honest services to include honest and impartial government,
and a general duty on the government official to act out of loyalty, honesty, independence,
impartiality, and integrity.

Accordingly, the public has a right to have its public officials perform their duties free from
improper influences, corruption, fraud, deceit, self-enrichment, self-dealing, and conflicts
of interest.

Three accepted categories of conflict of interest

Actual conflict of interest
An actual conflict of interest is one where there is a real conflict between a persons public
duties and their private interests.
Potential conflict of interest
A potential conflict of interest arises where a person has private interests that could conflict
with their public duties.
Perceived conflict of interest
A perceived conflict of interest can exist where a third party could form the view that a
persons private interest could improperly influence their performance of their duties now
or into the future.

Types of Potential and Perceived conflict of interest

Benefiting from who or what you know
Undue Influence
Compromised judgement and decision making

Types of Conflicts of Interest

Outside employment
Family interests

Identifying Conflicts of Interest

Since many conflicts of interest involve commercial interests or financial arrangements, all
business practices should be evaluated to be sure that they will not introduce biases or
preferences into the professional's clinical judgments or research interests.

Managing Conflicts of Interest

Avoid - The best way to handle conflicts of interest is to avoid them entirely

Disclose - also known as remedies

Recusal - To minimize any conflict, the board member should not participate in any way in
the decision, including discussions
Third Party Evaluation - To minimize any conflict, the board member should not partcipate
in any way in the decision, including discussions

Guide to identify
Record or register - recording the disclosure of a conflict of interest in a register is an
important first step. However, this does not necessarily resolve the conflict. It may be
necessary to assess the situation and determine whether one or more of the following
strategies is also required.

Restrict - restrict It may be appropriate for the employee to restrict their involvement in the
matter. For example, refrain from taking part in debate about a specific issue, abstain from
voting on decision or restrict access to information relating to the conflict of interest. If this
situation occurs frequently and ongoing conflict of interest is likely, further steps maybe

Recruit - it is not practical for the office to restrict their involvement, an independent third
party may need to be engaged to participate in, oversee or review the integrity of the
decision-making process.

Remove - removal from involvement in the matter altogether is the best option when ad hoc
or recruitment strategies are not feasible or appropriate.

Relinquish - relinquishing the personal or privates interests may be a valid strategy fro
ensuring there is no conflict with an officers public duty. This may be relinquishing of shares
of membership of a club or association.

Resignation - resignation may be an option if the conflict of interest cannot be resolved in

any other way, particularly where conflicting private interests cannot be relinquished.

Individuals must be considerate at all circumstances surrounding the offer of a gift or
benefit, how the transaction may reasonably be viewed by impartial observers, and the
potential impact on the practice of the professions.
Individuals must also be constantly aware of ways in which their personal and family
relationships, and other close personal associations, may potentially bias their judgments.
Situations of conflict of interest must be avoided whenever possible, and where they cannot
be avoided, they must be managed in an open and cooperative way.