A conflict
of interest is also a situation in which an individual has
competing interests or loyalties. Conflicts of interest involve a
person who has two relationships that might compete with each other for the
person's loyalties. For example, the person might have a loyalty to an employer
and also loyalty to a family business. Each of these businesses expects the
person to have its best interest first. Thus, the conflict.
A
conflict of interest arises in the workplace when an employee has competing
interests or loyalties that either is or potentially can be, at odds with each
other.
An example is a manager who was promoted from a coworker job where he worked with
his wife. The promotion made him his wife's boss so the company, after
discussion with the couple and HR, transferred her to another department.
A
conflict of interest causes an employee to experience a struggle between
diverging interests, points of view, or allegiances. Conflicts of interest are
generally forbidden in company codes of conduct and/or employee handbooks.
Conflicts
of interest can cause an employee to act out of interests that are divergent
from those of his or her employer or co-workers. In workplaces, employees want
to avoid any behaviour or choices that could potentially signal a conflict of
interest. They are bad news for the employee's reputation, integrity, and
trustworthiness in the eyes of management.
Generally
speaking, a conflict of interest tends to occur in one of three ways:
1. When an individual has the opportunity to use his
or her Partners position for personal financial gain or to benefit a company in
which the individual has a financial interest.
2. When outside financial or other interests may
inappropriately influence the way in which an individual carries out his or her
Partners responsibilities.
3. When an individual’s outside interests otherwise
may cause harm to Partners’ reputation, staff, or patients.
In
addition to conflicts of interest, another type of conflict is a conflict of
commitment. This occurs when there is an outside relationship that may deter an individual from devoting an appropriate
amount of time, energy, creativity, or other personal resources to his or her Partner
responsibilities.
Conflicts
of interest and commitment are not in and of themselves unethical or
impermissible; indeed, they are often unavoidable and in many cases can be
appropriately managed or reduced to an acceptable level. However, Partners
professionals and staff should be cognizant of the fact that any outside
activity, interest, or interaction with industry has the potential to create
conflicts, whether real or perceived.
Recognition of potential conflicts, and sensitivity to how personal,
financial and other relationships can be perceived by others, are by themselves
important parts of managing conflicts.
Examples of Conflicts of Interest
As
described above, a conflict of interest exists where an outside financial
interest or relationship has the potential to affect the way you do you
Partners work. While it is important to be mindful of all situations creating a
conflict of interest, it is equally important to remember that not all
situations that involve a conflict of interest are prohibited by Partners
policies.
As an
illustration, all of the situations below create some degree of conflict of
interest; however, some of them, depending on the circumstances, is acceptable
under Partners policies with certain limitations or restrictions.
Conflicts
of interest are difficult to describe in a definition, so the following
additional examples will illuminate the range of behaviours and actions that can
fall within the definition of conflicts of interest. They are as diverse as the
work settings in which they occur and involve people interaction, employee
actions, and personal benefits taking precedence over what is in the best
interests of the employer.
1. Receiving consulting fees from a company while performing clinical
research on the company’s technology.
While presenting a conflict of interest, this situation may be
acceptable as long as the consulting arrangement is properly documented and
reviewed and the amount of the payments does not exceed specific
thresholds. Exceptions may be allowed under limited conditions even if
payments exceed the thresholds, with appropriate management.
2. Owning stock in a company while performing
research sponsored by the company.
While presenting a conflict of
interest, this situation may be acceptable depending on the circumstances
under which the stock was acquired and on whether the company is a large,
publicly-traded company and the value of the stock does not exceed specific
thresholds. Exceptions may be allowed under limited conditions even if payments
exceed the thresholds, with appropriate management.
3. Conducting federally-funded research that could
affect the financial interests of a company in which the investigator has a
personal financial interest.
While presenting a potential
conflict of interest, this situation may be acceptable depending
on whether the financial interest could directly and significantly affect
the research, in which case, the financial interest must be managed, reduced,
or eliminated.
4. Involving students or post-doctoral students
and trainees in work that could directly benefit a company in which the faculty
member supervising the students has a personal financial interest.
While presenting a conflict of
interest, this situation may be acceptable as long as certain approval and
oversight steps are taken to ensure that the interests of the students/trainees
are adequately protected.
What are the rules?
The rules
covering conflict of interest, confidentiality and disclosure are found in
chapters 3 and 4 of the Solicitors Regulation Authority (“SRA”) Code of
Conduct.
The SRA
Code of Conduct can be a dull old read. However, it distils down to the fact
that:
· A solicitor cannot act for a client where there is
a conflict or significant risk of a conflict between the solicitor and that
client;
· Where there is a conflict or significant risk of the conflict between two or more clients, the solicitor cannot act for all or both
unless it falls within very narrow exceptions.
When
deciding which clients the solicitor can act for, serious consideration should
be given by the solicitor to issues regarding confidentiality and disclosure.
Protection
of confidential information is a fundamental feature of a solicitor’s
relationship with their clients. The duty continues after the end of the
retainer and even after the death of a client.
The solicitor also has a duty of disclosure to clients. The duty is limited to
information of which the solicitor is aware, and which is material to the
client’s matter. A solicitor cannot continue to act for a client for whom they
cannot disclose material information.
Where the
duty of confidentiality and duty of disclosure cannot be reconciled, the duty
to protect confidential information is paramount.
Confidentiality and disclosure
Version
21 of the Handbook was published on 6 December 2018.
It is
about the protection of clients' confidential information and the disclosure of
material information to clients.
Protection
of confidential information is a fundamental feature of your relationship with
clients. It exists as a concept both as a matter of law and as a matter of
conduct. This duty continues despite the end of the retainer and even after the
death of the client.
It is
important to distinguish the conduct duties from the concept of law known as
legal professional privilege.
Bear in
mind that all members of the firm or in-house practice, including support
staff, consultants and locums, owe a duty of confidentiality to your clients.
The duty
of confidentiality to all clients must be reconciled with the duty of
disclosure to clients. This duty of disclosure is limited to information of
which you are aware of which is material to your client's matter. Where you cannot
reconcile these two duties, then the protection of confidential information is
paramount. You should not continue to act for a client for whom you cannot
disclose material information, except in very limited circumstances, where
safeguards are in place. Such situations often also give rise to a conflict of
interests.
