The Tribune

CHAMBER VOICE

By IAN FERGUSON

TODAY, the Chamber Voice joins the national discussion in addressing the topic: 'Conflict of Interest'. As a nation we have been slow in speaking to the issue, and educating our employees and the country at large on what constitutes a conflict, how we should address potential conflicts, and the steps we must take to avoid recurring conflicts.

We begin with a generally-accepted definition of the term: "A conflict of interest occurs when an individual or organisation is knowingly involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other.

"Conflict of interest can be discovered and voluntarily defused before any corruption occurs. This is perhaps best accomplished by publically declaring any and all intentions regarding affiliations and financial dealings with all parties."

The definition provides us with a key word that has to be determined and addressed in every conflict of interest case: CORRUPTION. From the high office of a Prime Minister to the lowly desk of an office supervisor, we have seen or heard of cases throughout the world where some unscrupulous acts may have been perpetrated, or there was some hint of foul play, but it was met with a 'blind eye' to prevent an explosive situation.

Most conflicts fall into a grey area, where ethics and public perception are more relevant than statutes or precedents. Most conflicts are difficult to define, and many will simply argue that you know one when you see one. Furthermore, if the issue at hand appears to be a mere ethical judgment issue, then onlookers seem more able to accept and ignore the potential conflict of interest that has occurred. For example, you may extend a privilege to the child of a popular politician whose views you support, while other children, also eligible, are denied that same privilege due to 'budgetary constraints'. It is the motivation of the act that has to be brought into question here to truly determine whether this is a lapse in moral judgment or truly a conflict of interest.

There are certainly more common cases of conflicts that are pervasive in our society and corporate world. When a Board member, a Cabinet minister, local pastor, or seniorexecutive takes the liberty to extend their professional services and benefits from a deal that has been orchestrated, this is a clear case of a conflict. Or that same Board member, Cabinet minister, pastor or senior executive recommends/ appoints a family member to the Board or job being offered. In both instances, the possibility and likelihood of corruption is almost certain. The individual has determined to, by influence and manipulation, benefit from the spoils.

Historically, we have seen this type of behaviour repeated time and again in our country. In the 16th and 17th centuries, the Government sanctioned the wrecking of passing ships for up to 20 per cent of the loot. Again, during the age of piracy, proprietary governors gave letters of marque (permission) to inhabitants to rob passing ships. We will hold our historic reflection to the 18th centuryand ignore other issues, such as blockade running, prohibition, the drug trade and many others such events that all produced clear cases of conflict of interests.

It is true that the rich history of conflicts of interest, which have failed to bring to a head the corruption of many, is largely responsible for the behaviour of some corporate citizens today. There seems to be a very high tolerance for unethical behaviour in the corporate world. We may hear a line or two via public outcry for a week, and then we grow weary of hearing reference even made to the issue. In the absence of standards and policies regulating acceptable behaviour and, more importantly, consequences for those failing to comply with those standards, dishonest men run amok.

To offer solutions to businesses that may be challenged with the hint of conflicts, we share these tips:

• Adopt a 'conflict of interest' policy that prohibits or limits business transactions with Board members, and requires Board members to disclose potential conflicts

• Disclose conflicts when they occur, so that Board members who are voting on a decision are aware that another member's interests are being affected.

• Require Board members to withdraw from decisions that present a potential conflict.

• Establish procedures, such as competitive bids, that ensure that an organisation is receiving fair value in the transaction.

NB: Ian R. Ferguson was educated locally, regionally and internationally, having earned a Master's Degree in Education from the University of Miami. During the course of his nearly 20 years in education, talent management and human resources, he has served both the public and private sector in senior management roles. He currently serves as manager of the Chamber Institute, and as a local consultant in the field, having assisted hundreds of local and regional businesses in improving business and service excellence through their human capital.