Types of conflict of interest and duty

Conflicts of interest

Conflicts may be actual, potential or perceived, or represent a conflict of duty.

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• Actual conflict of interest

  There is a real conflict between an employee or director’s public duties and private interests.

• Potential conflict of interest

  An employee or director has private interests that could conflict with their public duties. This refers to circumstances where it is foreseeable that a conflict may arise in future and steps should be taken now to mitigate that future risk.

• Perceived conflict of interest

  The public or a third party could form the view that an employee or director’s private interests could improperly influence their decisions or actions, now or in the future.

• Conflict of duty

  Will arise when a person is required to fulfil two or more roles that may actually, potentially or be perceived to be in conflict with each other.

Public duties and private interests

Public duties are the official tasks that you perform in your role as an employee or director. A private interest means anything that can influence an employee or director.

Private interests may be direct or indirect, and financial or non-financial:

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• Direct interests

  Includes an employee or director’s own personal, family, professional or business interests.

• Indirect interests

  Includes the personal, family, professional or business interests of individuals or groups with whom the employee or director is, or was recently, closely associated.

• Financial interests

  Involves an actual, potential or perceived financial gain or loss. Money does not need to change hands for an interest to be financial.

  People have a financial interest if they (or a relative, or a close associate) own property, hold shares, have a position in a company bidding for government work, receive benefits such as concessions, discounts, gifts or hospitality from a particular source related to the public sector organisation, or can benefit financially from a decision significantly influenced or made by the organisation.

• Non-financial interests

  Arise from personal or family relationships, or involvement in sporting, social or cultural activities.

  They include any tendency toward favouritism or prejudice resulting from friendship, animosity, or other personal involvement with another person or group. If personal values are likely to impact on the proper performance of public duty, then these can also lead to a conflict of interest.