The nature of conflicts of interest

There is a conflict of interest in a school where:

An employee's duties or responsibilities could be affected by some other interest or duty that the employee may have.

The `other interest or duty' might exist because of:

• the employee's own financial affairs;
• a relationship or other role that the employee has; or
• something the employee has said or done.

Types of conflicts of interest

• holding another public office;
• being an employee, advisor, director, or partner of another business or organisation;
• pursuing a business opportunity;
• being a member of a club, society, or association;
• having a professional or legal obligation to someone else (such as being a trustee);
• owning a beneficial interest in a trust;
• owning or occupying a piece of land;
• owning shares or some other investment or asset;
• having received a gift, hospitality, or other benefit from someone;
• owing a debt to someone;
• holding or expressing strong political or personal views that may indicate prejudice or predetermination for or against a person or issue; or
• being a relative or close friend of someone who has one of these interests (or who could otherwise be personally affected by a decision at the school).

Just because a school employee has an interest outside their work, it does not necessarily follow that they have a conflict of interest. A conflict of interest only occurs if something arises at work that overlaps with the other interest.

Perceptions are important

The management of conflicts of interest also involves appearances - what an outside observer might reasonably perceive. Most often, what needs to be managed (and be seen to be managed) is the risk of the adverse public and community perception that could arise from the overlapping interests.

Sometimes there may be a perception of a conflict of interest where the interest(s) come close but do not actually overlap. It may still be necessary to take some steps to manage these situations. Not taking steps to manage these risks can undermine the school and the individual's reputation.