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Step 1: Identify the conflict of interest
A guide for employees and managers on how to identify a conflict of interest.
Identify the conflict
Many people have conflicts of interest during the course of their employment.
Having a conflict is not in itself a sign of wrongdoing.
Part of supporting a culture of integrity is for your organisation to support you to raise any conflicts of interest you may have.
If you have a conflict of interest and do not declare it, this could cause issues about whether you are performing your job properly, with fairness and impartiality.
Key actions to identify a conflict of interest
You must avoid conflicts of interest where possible. But it is common for them to arise.
If you have a conflict of interest you must:
identify it
declare it on the form your organisation provides
make your declaration within the time your organisation’s policy specifies. For example, as soon as practicable, usually within 5 working days.
If you are unsure whether a conflict exists:
consider the information we provide below
discuss the matter with your manager (or any other person your organisation’s policy specifies as an alternative).
To help identify a conflict of interest, some useful questions are:
Does my private interest intersect with my role? If so, could this create a perception of bias or favouritism in the exercise of my duties?
What would a fair-minded member of the public make of the situation?
Could my involvement in this matter cast doubt on my integrity or that of the organisation?
If I saw someone else in this situation, would I think they have a conflict of interest?
If my actions were covered by the media, could it embarrass me or the organisation?
In other words, does it pass the public perception test (the ‘pub’ test)?
What will happen when you declare a conflict of interest
When you declare a conflict of interest, your organisation will develop a plan to manage the conflict in the public interest.
Having a conflict of interest does not automatically exclude you from undertaking work duties such as making certain decisions.
The plan that’s developed will be proportionate to the risk level posed by the conflict of interest.
Check for conflicts
Check regularly for conflicts of interest. They’re most likely to occur in areas where you:
have the power to make or influence decisions that can benefit others
have private interests that may conflict with your work duties.
But they can also occur in low risk areas.
High risk areas for conflict of interest
Being aware of high risk areas for conflict of interest can help you to:
avoid conflicts of interest
identify a conflict if one occurs.
Your organisation’s own high risk areas
Check to see if your organisation has identified its high risk areas for conflict of interest and advised its employees of these in its policy or guidance.
Typical risk factors
The risk of having a conflict of interest depends on a mix of factors such as:
your organisation’s functions and your work duties. In particular, if you have the power to make or influence decisions that can benefit others.
the operating environment. For example, working alone, in an isolated community or with vulnerable stakeholders.
private interests. For example, your private interests if they may conflict with your work duties.
Examples of typical high risk areas
Below are some examples of typical high risk areas for conflict of interest. This information can:
help your organisation to identify its areas of high risk for conflict of interest
help you to pinpoint the particular areas of high risk that apply to you.
For easier reading, the examples are grouped by risk factors.
If any of the examples apply to you, take extra care in those areas to identify if any conflicts exist.
The risk of a conflict of interest is typically higher if you’re involved in the duties below.
If a conflict of interest arises, declare it to your manager, who will develop a conflict of interest management plan in consultation with you. For details see step 2 and step 3.
Allocating goods, equipment, services or funds
Allocating or providing sought-after goods, equipment, services or funds. For example:
grants of public funds
subsidies, financial assistance, concessions or other relief to those in need
services, equipment or goods where demand frequently exceeds supply
services or advice in a specialist area
individual case management.
Confidential information
Collecting, handling or storing confidential information.
Discretionary powers
Making binding decisions in which you exercise discretionary powers. For example:
decisions about planning and development applications or zoning
determinations or judgments about individuals or disputes.
Procurement, tendering and contracts
Undertaking work duties in relation to:
procurement of goods or services
allocation of contracts under the tender threshold
contract tendering, evaluation, selection and management.
For more information see:
your organisation’s procurement policy
if your organisation is part of the public service (a department, administrative office or the VPSC) see our guidance on VPS procurement and conflict of interest. This particular guidance does not apply to the broader public sector, such as public entities.
Public assets and equipment
Decisions about:
public assets – their disposal or sale
public assets – purchasing or leasing
resources and equipment – controlling or storing resources or equipment that could be used for private gain, such as vehicles, tools or office equipment.
Recruitment and selection
Recruitment and selection, for example, as a member of a selection panel.
For details, see your organisation’s recruitment and selection policy.
Regulatory functions
A regulatory role, for example:
issue or review fines or other sanctions
issue qualifications or licenses
inspect, test, regulate or monitor standards, businesses, equipment or premises.
Sponsorship
Allocating or accepting sponsorship.
The risk of a conflict of interest is typically higher in certain operating environments, such as those below.
If a conflict of interest arises, declare it to your manager, who will develop a conflict of interest management plan in consultation with you.
regular contact with high-risk industries or individuals. For example, if your organisation is involved in the gambling or liquor industries.
working on a private-public partnership project.
Gifts, benefits and hospitality
If as a result of your work role you sometimes receive or make offers of gifts, benefits and hospitality
For more information see your organisation’s gifts, benefits and hospitality policy and our guidance on this topic.
The risk of a conflict of interest arising from your private interests will vary depending on factors such as:
your role in the organisation
the nature of your private interests.
If a conflict of interest arises, declare it to your manager. They will develop a conflict of interest management plan in consultation with you. For details see step 2 and step 3.
Examples of high risk private interests
Below are some examples of private interests that are typically high risk for conflict of interest.
Consensual personal relationships
Consensual personal relationships between employees of the same organisation are typically high risk and in some circumstances must be declared.
If you are in or considering entering into a consensual personal relationship we recommend that you read our guidance on this topic.
Strict rules apply as to when the relationship must be declared. Check your organisation’s policy. It may have stricter requirements than in our guidance.
Declarable associations
A current or recent association with a person, group or organisation that you are aware or should reasonably suspect of being engaged in serious unlawful activity, now or in the past. The association is declarable if a conflict of interest exists.
If you have a relationship of this type, we recommend you read our guidance on this topic.
Strict rules apply as to when the relationship must be declared. Check your organisation’s policy. It may have stricter requirements than in our guidance.
Financial interests that may be affected
Financial interests that may be affected.
For example, if you or a family member owns shares, it would be a conflict of interest for you to be involved in any decision made by your organisation that could change the shares’ value.
Other high risk examples include:
secondary work or commercial interests. For details see your organisation’s outside employment policy.
the promise or prospect of future employment with a person or organisation you interact with as part of your public duties.
Variable risk levels: For example duty, loyalty or bias
If you have a duty or loyalty to another organisation, group, person or cause, there is no typical risk level of a conflict of interest. The risk level will be determined by factors such as:
your role in your organisation
the nature and level of your duty, loyalty or bias towards the other organisation, group, person or cause.
If a conflict of interest does arise you must declare the interest to your manager, who will develop a conflict of interest management plan in consultation with you. For details see step 2 and step 3.
Read the guidance on any of these topics that affect you: