CODE OF ETHICS

Managing Conflicts of Interest in the Workplace

Exploring Ethics Series, No. 7/10 Part 2

Recognising conflicts of interest

A conflict of interest occurs when an employee is in a position to influence, be influenced or appear to be influenced due to a personal or pecuniary private interest in the workplace. For example conflicts of interest can occur: in work-related situations where there is the potential for favouritism, privilege or benefit that an individual with power or influence bestows upon an individual regardless of merit when favouring supporters and misusing authority by giving support, protection or favours based on loyalty rather than ability. when making work-related decisions in favour of a family member or any other close personal relationship regardless of merit.

Guiding principles
The following principles will guide you to avert possible or perceived conflicts of interest that may arise due to complaints or allegations among DECD employees. The following principles apply: The person/s with the conflict will play no part in decisions where there are perceived benefits such as: o Merit selection or local selection panels o Engaging casual or temporary staff e.g. TRTs, contracts, SSOs, HPIs o Promotion and reclassification o Renewal of contracts o Performance management /development o Conflict resolution/complaints o Salary considerations o Tendering and contracting When participating in any of the above activities, a conflict of interest, real or perceived, must be formally declared. The relevant panellist/decision maker must withdraw from the process and another person appointed in their place Ensure that any person with the conflict does not receive any information or participate in any discussions or formation of recommendations, in relation to the above, until after the relevant process has been completed Every effort is made to avoid supervision or line management responsibility between employees who have or are known to have had a close personal relationship Ensure that individuals concerned are aware of potential difficulties and conduct themselves in a manner that does not give rise to a real or perceived conflict of interest, trust or breach of confidentiality Employees are entitled to fair and equal treatment Ensure that any complaints or grievances regarding conflicts of interest are referred to the relevant line manager and are dealt with promptly and in a fair and reasonable manner

Conflicts of interest may be actual, perceived or potential. An assessment of which can be determined by asking whether a reasonably minded and informed person would think that there was a conflict or probability of a conflict.

Risks caused by conflicts of interest

The risk of real or perceived favouritism in recruitment, merit selection, promotion, performance management, salary and bonus decisions or disciplinary action often lead to complaints Favouring one employee over another reduces morale, increases staff turnover and slows down merit based career advancement The presumption or perception that confidential information is being disclosed without approval, which leads to suspicion, mistrust and resentment Exhibiting personal issues at work may lead to unprofessional and inappropriate behaviours, creating an uncomfortable atmosphere for other employees Conduct and/or decision making that are not in keeping with the Public Sector values risk damaging the site and agency image and reputation.

Approval date: 02/04/2013

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CODE OF ETHICS
Managing Conflicts of Interest in the Workplace
Exploring Ethics Series, No. 7/10 Part 2
Serious or ongoing concerns will be investigated and may lead to disciplinary action. Disclosure or an allegation of an alleged conflict of interest must be referred to the appropriate line manager for consideration and closer examination. The line manager must evaluate the situation and determine the appropriate steps to take to eliminate and avoid the perception or presence of a conflict of interest. The issue and actions taken must be well documented; ensuring both privacy and confidentiality is observed. The situation will be monitored by the line manager. The relevant director/ executive director must be informed by the line manager of all disclosures and outcomes at the site. Where there is confirmation of a conflict of interest, the relevant director will appropriately take one of the following actions: Letter of caution Letter of direction Discipline as directed by the Chief Executive implemented, which might overcome the perception or possibility of a conflict of interest. To assess a possible conflict of interest, further information and guidance may be sought from the Frequently Asked Questions (FAQs) about Conflicts of Interest available on the DECD website at:
http://www.decd.sa.gov.au/docs/documents/1/Faqs ConflictsofInterest.pdf

Responding to conflicts of interest

1.

2.

Leaders and managers

Leaders and managers should ensure that: staff are aware that the onus is on them to take appropriate steps to avoid a conflict of interest they seek advice whenever appropriate to assist with deciding if a conflict of interest exists, and in managing the conflict. appropriate management strategies to deal with any other conflicts of interest are implemented and that decisions and actions are documented.

3.

4. 5.

6.

When a supervisor or line manager learns of a possible conflict of interest involving one or more employees in the unit, the following strategies may be useful in managing the conflict of interest situation, which should always be based on what is most appropriate to the circumstances. Discuss the employment relationship and the related prohibited activities. In most circumstances, consult with each individual in a relationship, either separately or together. Discuss and determine the appropriate steps to take to eliminate and avoid prohibited activities. The actions must not unreasonably disadvantage either employee. If eliminating the prohibited activities would unreasonably disadvantage one or both members, contact Ethical Conduct Unit (ECU) and schedule a periodic review of the situation. When a power disparity exists in the employment of the individuals in the personal relationship, it is important to protect the employment interests of all employees. Discuss privacy concerns and appropriate confidentiality, including whether it is necessary to inform anyone else of any changes made to the employment relationship.

Employees
Employees must ensure that: Where the possibility of a conflict of interest exists, you seek advice from your site leader or manager as to whether there is, or may appear to be, a conflict of interest. The person with the potential conflict must immediately make a written disclosure of the conflict with their line manager for discussion and advice. This can be made by completing the Conflict of Interest Declaration Form, available at:
http://www.decd.sa.gov.au/docs/documents/1/ DeclarationofaConflictofI.pdf

Advice is sought from the line manager and/or the Ethical Conduct Unit (ECU) to determine whether any changes can be

Approval date: 02/04/2013

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CODE OF ETHICS
Managing Conflicts of Interest in the Workplace
Exploring Ethics Series, No. 7/10 Part 2
Contact the ECU before implementation to discuss all aspects of the consultation. All consultations should be documented with the: o information individuals, received from the

DECD

Conflict

of

Declaration

Form

http://www.decd.sa.gov.au/docs/documents/1/Decla rationofaConflictofI.pdf

Conflict of Interest FAQs

http://www.decd.sa.gov.au/docs/documents/1/Faqs ConflictsofInterest.pdf

o prohibited activities and potential conflicts which were discussed, o steps taken to avoid and eliminate the prohibited activities, o method and frequency with which the action will be reviewed, o any necessary and appropriate disclosures which were made to other administrators. Keep all documentation secure and confidential and separate from any official file on other individuals involved in the relationship.

Exploring Ethics Scenario Conflicts of Interest

http://www.decd.sa.gov.au/hrstaff/files/links/link_129568. pdf

For further information contact: Ethical Conduct Unit Telephone: 8226 1342 Email: decd.ecu@sa.gov.au

Further action
Where an assessment and review determines that actual or potential conflict of interest exists, an appropriate determination of whether the conflict must be eliminated, reduced or effectively managed will be made by the relevant Director. If required, a management plan may be developed in consultation with the individual/s and respective manager. If cautionary warnings, restriction, reorganisation of duties or additional obligations are imposed as a direction, the individual/s concerned must fully comply with the direction in accordance with the Public Sector Act 2009 and Public Sector (Honesty and Accountability) Act 1995. Where the conflict is serious or ongoing, disciplinary action may be considered.

Resources
Code of Ethics resources are available at: http://www.decd.sa.gov.au/hrstaff/pages/d efault/CodeOfEthics/ Public Sector (Honesty Accountability) Act 1995 Public Sector Act 2009 DECD Complaint Resolution Employees Policy and Procedures for and

Approval date: 02/04/2013

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