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Conflict of interest

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Chiranjibi Banjade
Chiranjibi Banjade

This document discusses conflicts of interest and provides guidance on how to handle them. It defines a conflict of interest as a situation where a person's interests could compromise their judgment or actions. It gives examples of common conflicts like self-dealing, accepting gifts, and using confidential information for personal gain. The document outlines seven keys to properly managing conflicts, which include knowing requirements, training employees, documenting compliance procedures, implementing regulations, understanding consequences, requesting exceptions when needed, and getting help from the appropriate authorities. The overall message is that conflicts must be identified, disclosed, and either eliminated, mitigated, or waived to ensure integrity and avoid problems.

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CONFLICT OF INTEREST PRESENTING BY CHIRANJIVI BANJADE MANISH NEUPANE
Conflict of interest A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another. Typically, this relates to situations in which the personal interest of an individual or organization might adversely affect a duty owed to make decisions for the benefit of a third party.
BREAKING DOWN 'Conflict of Interest' A conflict of interest in business normally refers to a situation in which an individual's personal interests conflict with the professional interests owed to his employer or the company in which he is invested. A conflict of interest arises when a person chooses personal gain over the duties to an organization in which he is a stakeholder. For example, all board members have fiduciary duties and a duty of loyalty to the corporations they oversee. If one of the board members chooses to take an action that benefits him at the detriment of the firm, he is harming the company with a conflict of interest.
Leading examples [1] Self-dealing. For example, you work for government and use your official position to secure a contract for a private consulting company you own. Another instance is using your government position to get a summer job for your daughter. [2] Accepting benefits. Bribery is one example; substantial gifts are another. For example, you are the purchasing agent for your department and you accept a case of liquor from a major supplier. [3] Influence peddling. Here, the professional solicits benefits in exchange for using her influence to unfairly advance the interests of a particular party. [4] Using your employer¡¯s property for private advantage. This could be as blatant as stealing office supplies for home use. Or it might be a bit more subtle, say, using software which is licensed to your employer for private consulting work of your own. In the first case, the employer¡¯s permission eliminates the conflict; while in the second, it doesn¡¯t.
[5] Using confidential information. While working for a private client, you learn that the client is planning to buy land in your region. You quickly rush out and buy the land in your wife¡¯s name. [6] Outside employment or moonlighting. An example would be setting up a business on the side that is in direct competition with your employer. Another case would be taking on so many outside clients that you don¡¯t have the time and energy to devote to your regular employer. In combination with [3] influence peddling, it might be that a professional employed in the public service sells private consulting services to an individual with the assurance that they will secure benefits from government: ¡°If you use my company, I am sure that you will pass the environmental review.¡± [7] Post-employment. Here a dicey situation can be one in which a person who resigns from public or private employment and goes into business in the same area. For example, a former public servant sets up a practice lobbying the former department in which she was employed.
7 Keys to Handling Conflicts of Interest ? Conflicts of interest arise when officials or staff stand to benefit-- either directly themselves or indirectly through business partners or relatives--from the awarding or contracting of grant funds. Grantees are encouraged to avoid conflicts of interest to the extent possible. When conflicts of interest arise, grantees must identify, disclose, and manage them in compliance with applicable rules and regulations. When conflict-of-interest issues are overlooked or hidden, this creates problems for the individuals involved, as well as grantees, sub recipients, or contractors. This bulletin discusses common types of conflicts of interest, offers best practices for avoiding and managing them, and the potential consequences of not handling them appropriately.
1. Know the Requirements The existence of a conflict of interest does not necessarily mean that any individual acted improperly or illegally, but it does mean that, unless properly handled and addressed, he or she could end up being in violation of Federal rules. Therefore, all such cases must be identified and resolved by eliminating the conflict or obtaining a written exception.
2. Train Employees ? Grantees and sub recipients ought to build an organizational culture that is conscious of potential conflicts of interest so that action can be taken to avoid or mitigate conflicts as they arise. Provide conflict-of- interest training for all employees, including those of the organization and the governing authority, the organization¡¯s leadership and, as appropriate, the organization¡¯s agents. To have the most impact, the organization should have a written policy requiring annual conflict-of-interest training, and legal counsel or other qualified individuals should review the policy with employees (and board members), sub recipient officers, and pass-through entity staff at least annually. Documenting training is a best practice.
3. Create Procedures to Document Compliance ? Conflict-of-interest policies and procedures should describe how conflicts will be handled. When a conflict or potential conflict of interest exists, the person with the conflict should advise the board or management committee in writing and seek guidance on how to resolve the conflict.
4. Implement the Regulations ? Often people are unaware that their activities are in conflict with the best interests of the organization. A goal should be to raise awareness, encourage disclosure and discussion of issues that may constitute a conflict, and constantly encourage a ¡°culture of candor.¡±
5. Know the Consequences ? Violating conflict-of-interest rules can have serious consequences for a grant program. Bad publicity surrounding undisclosed conflicts may seriously undermine the public trust in the program as well as damage personal reputations. Audits and investigations can result in the grantee¡¯s having to repay Federal funds, or individuals being fired or prosecuted.
6. Request an Exception ? HUD may grant an exception to non- procurement conflicts of interest on a case©\by©\case basis. It is the recipient¡¯s responsibility to submit a written request for an exception to its local HUD CPD office.
7. Get Help ? Conflict-of-interest requirements are often nuanced and must be reviewed case by case. HUD provides assistance when conflict-of-interest situations arise or are in question. You can get help from your local CPD office when such issues arise.
Identify, disclose, and manage all real and apparent conflicts of interest through elimination, The primary goal in managing conflicts of interest is to ensure that as decisions are made, they are seen to be made on proper grounds, for legitimate reasons, and without bias or unfairness. mitigation, or waivers. Conflicts of interest are situations not allegations¡­ BUT they must be disclosed and managed properly.
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Conflict of interest

  • 1. CONFLICT OF INTEREST PRESENTING BY CHIRANJIVI BANJADE MANISH NEUPANE
  • 2. Conflict of interest A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another. Typically, this relates to situations in which the personal interest of an individual or organization might adversely affect a duty owed to make decisions for the benefit of a third party.
  • 3. BREAKING DOWN 'Conflict of Interest' A conflict of interest in business normally refers to a situation in which an individual's personal interests conflict with the professional interests owed to his employer or the company in which he is invested. A conflict of interest arises when a person chooses personal gain over the duties to an organization in which he is a stakeholder. For example, all board members have fiduciary duties and a duty of loyalty to the corporations they oversee. If one of the board members chooses to take an action that benefits him at the detriment of the firm, he is harming the company with a conflict of interest.
  • 4. Leading examples [1] Self-dealing. For example, you work for government and use your official position to secure a contract for a private consulting company you own. Another instance is using your government position to get a summer job for your daughter. [2] Accepting benefits. Bribery is one example; substantial gifts are another. For example, you are the purchasing agent for your department and you accept a case of liquor from a major supplier. [3] Influence peddling. Here, the professional solicits benefits in exchange for using her influence to unfairly advance the interests of a particular party. [4] Using your employer¡¯s property for private advantage. This could be as blatant as stealing office supplies for home use. Or it might be a bit more subtle, say, using software which is licensed to your employer for private consulting work of your own. In the first case, the employer¡¯s permission eliminates the conflict; while in the second, it doesn¡¯t.
  • 5. [5] Using confidential information. While working for a private client, you learn that the client is planning to buy land in your region. You quickly rush out and buy the land in your wife¡¯s name. [6] Outside employment or moonlighting. An example would be setting up a business on the side that is in direct competition with your employer. Another case would be taking on so many outside clients that you don¡¯t have the time and energy to devote to your regular employer. In combination with [3] influence peddling, it might be that a professional employed in the public service sells private consulting services to an individual with the assurance that they will secure benefits from government: ¡°If you use my company, I am sure that you will pass the environmental review.¡± [7] Post-employment. Here a dicey situation can be one in which a person who resigns from public or private employment and goes into business in the same area. For example, a former public servant sets up a practice lobbying the former department in which she was employed.
  • 6. 7 Keys to Handling Conflicts of Interest ? Conflicts of interest arise when officials or staff stand to benefit-- either directly themselves or indirectly through business partners or relatives--from the awarding or contracting of grant funds. Grantees are encouraged to avoid conflicts of interest to the extent possible. When conflicts of interest arise, grantees must identify, disclose, and manage them in compliance with applicable rules and regulations. When conflict-of-interest issues are overlooked or hidden, this creates problems for the individuals involved, as well as grantees, sub recipients, or contractors. This bulletin discusses common types of conflicts of interest, offers best practices for avoiding and managing them, and the potential consequences of not handling them appropriately.
  • 7. 1. Know the Requirements The existence of a conflict of interest does not necessarily mean that any individual acted improperly or illegally, but it does mean that, unless properly handled and addressed, he or she could end up being in violation of Federal rules. Therefore, all such cases must be identified and resolved by eliminating the conflict or obtaining a written exception.
  • 8. 2. Train Employees ? Grantees and sub recipients ought to build an organizational culture that is conscious of potential conflicts of interest so that action can be taken to avoid or mitigate conflicts as they arise. Provide conflict-of- interest training for all employees, including those of the organization and the governing authority, the organization¡¯s leadership and, as appropriate, the organization¡¯s agents. To have the most impact, the organization should have a written policy requiring annual conflict-of-interest training, and legal counsel or other qualified individuals should review the policy with employees (and board members), sub recipient officers, and pass-through entity staff at least annually. Documenting training is a best practice.
  • 9. 3. Create Procedures to Document Compliance ? Conflict-of-interest policies and procedures should describe how conflicts will be handled. When a conflict or potential conflict of interest exists, the person with the conflict should advise the board or management committee in writing and seek guidance on how to resolve the conflict.
  • 10. 4. Implement the Regulations ? Often people are unaware that their activities are in conflict with the best interests of the organization. A goal should be to raise awareness, encourage disclosure and discussion of issues that may constitute a conflict, and constantly encourage a ¡°culture of candor.¡±
  • 11. 5. Know the Consequences ? Violating conflict-of-interest rules can have serious consequences for a grant program. Bad publicity surrounding undisclosed conflicts may seriously undermine the public trust in the program as well as damage personal reputations. Audits and investigations can result in the grantee¡¯s having to repay Federal funds, or individuals being fired or prosecuted.
  • 12. 6. Request an Exception ? HUD may grant an exception to non- procurement conflicts of interest on a case©\by©\case basis. It is the recipient¡¯s responsibility to submit a written request for an exception to its local HUD CPD office.
  • 13. 7. Get Help ? Conflict-of-interest requirements are often nuanced and must be reviewed case by case. HUD provides assistance when conflict-of-interest situations arise or are in question. You can get help from your local CPD office when such issues arise.
  • 14. Identify, disclose, and manage all real and apparent conflicts of interest through elimination, The primary goal in managing conflicts of interest is to ensure that as decisions are made, they are seen to be made on proper grounds, for legitimate reasons, and without bias or unfairness. mitigation, or waivers. Conflicts of interest are situations not allegations¡­ BUT they must be disclosed and managed properly.