Conflict of interest is a situation in which an individual is involved in multiple interests, and serving one interest could adversely affect their judgment and objectivity regarding the other interest. It occurs when there is a clash between a person’s personal interests and their professional or club/branch responsibilities.
There are four (4) general types of conflicts:
| Actual | Real conflict between a directors duties and and private interests |
| Perceived | 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. |
| Potential | A 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 |
| 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. |
It is essential to declare conflicts of interest to ensure transparency and maintain the integrity of decision-making processes. Failure to disclose conflicts of interest can lead to a lack of trust in the decision-making process and can create a perception of bias.
Conflicts of interest should be declared as soon as they arise, and preferably before any decision-making takes place. For example, a board member who has a financial interest in a decision being made by the board should declare the conflict of interest at the beginning of the meeting.
When a conflict of interest is declared, the person involved should excuse themselves from the decision-making process or any other activity where the conflict of interest could compromise their ability to act in the best interests of the club/branch. They should also avoid any activity that could create an appearance of impropriety or bias.
Each club should have their own conflicts of interest policy and interest register that Committee Members are aware of and abide by at all times. The ACNC has a managing conflict of interest guide with a template policy and register SLSQ recommends you club reviews and adapts.
ACNC managing conflicts of interest guide
ACNC conflict of interest register template
ACNC conflict of interest policy template
In some cases, it may be necessary to seek guidance from an SLSQ or, such as a legal or ethical advisor, to manage the conflict of interest effectively. If you require clarification, please contact your branch staff or email ethicalstandards@lifesaving.com.au
| Club Tip A useful way to identify conflicts of interest is to use the ‘impartial observer test’. The test is as follows:
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