Declaration of Interest Policy
Purpose
Our company Conflict of Interest Policy refers to any case where an employee's personal interest might contradict the interest of the company they work for. This is an unwanted circumstance as it may have heavy implications on the employee's judgement and commitment to the company, and by extension to the realisation of its goals. This policy will outline the rules regarding conflict of interest and the responsibilities of employees and the company in resolving any such discrepancies.
Objective
The management of Solutions4health, Executive Board (The Board), committee of management or other governance structure as relevant, (called the "organisation in this policy) aims to ensure that board members and employees are aware of their obligations to disclose any conflicts of interest that they may have, and to comply with this policy to ensure they effectively manage those conflicts of interest as representatives of the organisation.
Scope
Solutions4health's conflict of interest policy applies to all prospective or current employees of the company, as well as independent contractors and persons acting on behalf of the organisation.
Definition of conflicts of interests
A conflict of interest occurs when a person's personal interests conflict with their responsibility to act in the best interests of the organisation. Personal interests include direct interests as well as those of family, friends, or other organisations a person may be involved with or have an interest in for example, as a shareholder. It also includes a conflict between a board member's duty to the organisations and another duty that the employee has for example, to another charity. A conflict of interest may be actual, potential or perceived and may be financial or non-financial.
These situations present the risk that a person will make a decision based on, or affected by, these influences, rather than in the best interests of Solutions4health and must be managed accordingly.
This situation may take many different forms that include, but are not limited to, conflict of interest examples:
- Employees' ability to use their position with the organisation to their personal advantage
- Employees engaging in activities that will bring direct or indirect profit to a competitor
- Employees owning shares of a competitor's stock
- Employees owning shares of a competitor's stock Employees using connections obtained through the organisation for their own private purposes
- Employees using the organisations equipment or means to support an external business
- Employees acting in ways that may compromise the organisation's legality (e.g. taking bribes or bribing representatives of legal authorities)
The possibility that a conflict of interest may occur can be addressed and resolved before any actual damage is done. Therefore, when an employee understands or suspects that a conflict of interest exists, they should bring this matter to the attention of management so corrective actions may be taken. Supervisors must also keep an eye on potential conflict of interests of their subordinates.
The responsibility of resolving a conflict of interest starts from the immediate supervisor and may reach senior management. All conflicts of interest will be resolved as fairly as possible. Senior management has the responsibility of the final decision when a solution cannot be found.
In general, employees are advised to refrain from letting personal and/or financial interests and external activities come into opposition with the organisation's fundamental interests.
Policy
This policy has been developed because conflicts of interest commonly arise, and do not need to present a problem to the organisation if they are openly and effectively managed. It is the policy of Solutions4health as well as a responsibility of The Board, that ethical, legal, financial or other conflicts of interest be avoided and that any such conflicts where they do arise do not conflict with the obligations to organisation.
Solutions4health will manage conflicts of interest by requiring board members to:
- Avoid conflicts of interest where possible
- Identify and disclose any conflicts of interest
- Carefully manage any conflicts of interest, and
- Follow this policy and respond to any breaches.
Responsibility of The Board
The Board is responsible for:
- establishing a system for identifying, disclosing and managing conflicts of
- interest across the organisation.
- monitoring compliance with this policy, and reviewing this policy on an annual basis to ensure that the policy is operating effectively.
- reviewing this policy on an annual basis to ensure that the policy is operating.
Solutions4health must ensure that its board members are aware of its governance standards, and that they disclose any actual or perceived material conflicts of interests.
Identification and disclosure of conflicts of interest
Once an actual, potential or perceived conflict of interest is identified, it must be entered into Solutions4health's register of interests, as well as being raised with The Board. Where all of the other board members share a conflict, The Board should ensure that proper disclosure occurs. The register of interests must be maintained by Human Resources Department and record information related to a conflict of interest, including the nature and extent of the conflict of interest and any steps taken to address it.
Confidentiality of disclosures
HR and the Executive Board will have access to the information disclosed. It may also be necessary to provide for an alternative disclosure mechanism if additional restrictions on disclosure are required.
- Action required for management of conflicts of interest
- Conflicts of interest of board members
Once the conflict of interest has been appropriately disclosed, The Board excluding the board member disclosing and any other conflicted board member must decide whether or not those conflicted board members should:
- vote on the matter (this is a minimum),
- participate in any debate, or
- be present in the room during the debate and the voting.
In exceptional circumstances, such as where a conflict is very significant or likely to prevent a board member from regularly participating in discussions, it may be worth the board considering whether it is appropriate for the person conflicted to resign from the board.
What should be considered when deciding what action to take
- In deciding what approach to take, the board will consider whether the conflict needs to be avoided or simply documented
- whether the conflict will realistically impair the disclosing person's capacity to impartially participate in decision-making
- alternative options to avoid the conflict
- the organisation's objectives and resources, and
- the possibility of creating an appearance of improper conduct that might impair confidence in, or the reputation of, the organisation.
The approval of any action requires the agreement of at least a majority of the board excluding any conflicted board member/s who are present and voting at the meeting. The action and result of the voting will be recorded in the minutes of the meeting and in the register of interests.
Compliance with this policy
If the board has a reason to believe that a person subject to the policy has failed to comply with it, it will investigate the circumstances.
If it is found that this person has failed to disclose a conflict of interest, the board may take action against them. This may include seeking to terminate their employment / relationship with the organisation.
If a person suspects that an employee has failed to disclose a conflict of interest, they must inform HR immediately.
Contacts
For questions about this policy, please contact Human Resources at hr@solutions4health.co.uk
The Company seeks to apply this Policy in the induction and training of all employees. The Company reserves the right to amend and update this Policy at any time.