A conflict of interest is a situation arising from conflict between the performance of public duty and private or personal interests.
The conflict of interest may be actual, be perceived to exist, or potentially exist at some time in the future.
Actual conflict of interest
An actual conflict of interest is a personal interest you or an immediate family member or friend have that could influence your decisions, actions or advice in the course of your public duty.
Perceived conflict of interest
Perceived conflict of interest is when you or an immediate family member or close friend have a personal interest or an association with a person that you know will not influence your decisions, actions or advice in your public duty, but others may think it will.
Potential conflict of interest
Potential conflict of interest is when you or an immediate family member or friend may, in the future, develop a personal interest related to your decisions, actions or advice associated with your public duty.
Guidance
Perception of a conflict of interest is important to consider because public confidence in the integrity of an organisation is vital.
A perceived conflict of interest could exist in various circumstances such as a recruitment process where a member of the panel is known to the successful applicant. It is very important to report, register and manage any perceived conflict of interest. In this example the panel member is expected to have declared and documented the conflict in the selection report and the report should demonstrate how the conflict was managed.
A potential conflict of interest may not always be apparent to you, but when it becomes apparent, you are required to report, register and manage the conflict of interest.
In the circumstance where a complaint is made about the conduct of a staff member and that staff member has or had a personal relationship with their line manager, the line manager’s senior manager should be involved in managing the complaint and documenting how it was addressed.
Volunteer activities can be a conflict of interest in some circumstances.