Conflicts of Interest Guidance1
1.Purpose
The Royal Australian College of General Practitioners Ltd (RACGP) is committed to good governance and the highest ethical standards. The participation of members in their professional association brings with it perceptions of bias whether they participate as employees, contractors or volunteers on advisory committees. This guidance aims to assist employees, board members, faculty councillors and others engaged in the work of RACGP with the ongoing identification, declaration and management of actual potential or perceived conflicts of interest. This Guidance supports the RACGP Conflict of Interest and Related Party Transactions Policy.
Management of conflicts of interest is important to ensure public trust and confidence in RACGP. Members performing roles are also reminded of the RACGP Member Code of Conduct requiring them to act professionally and with integrity. This obligation means disclosing and managing any relationships that could give rise to a conflict of interest.
2.Application
Management of actual, potential or perceived, conflicts of interest is the responsibility of all employees, board and committee or council members, volunteers and contractors (referred to throughout as Staff). Always being alert to conflicts and not participating in decisions where you have a conflict or declaring potential conflicts and discussing with relevant managers or board and committee chairs is a continuing obligation.
"Importantly a conflict of interest does not depend on the character of the individual concerned, but on the specific situation." i
3.Conflicts General Principles- public trust
It is not always possible to avoid a situation where a conflict of interest exists, particularly as a membership professional association, however it is important that these situations are correctly managed. Personal or other interests, whether these are financial, relate to family friends or associates, should not influence decision making.
- Actual conflict of interest is where there is a real conflict between a duty to RACGP and a personal interest;
- Potential conflict of interest is one which may arise in the future, and
- Perceived conflict of interest where the public could reasonably form the view that a conflict exists or could arise that may improperly influence a decision or performance of a function.
Decision-makers must consider whether conflicts arising from personal interests, friendships, or relationships may create a perception of bias. This is particularly relevant in areas such as education, procurement, strategic planning, and roles with fiduciary duties, such as board members. The context and nature of the role dictate the level of scrutiny required. For example, quasi-judicial functions, like those of appeal panels or progress review committees, require a heightened commitment to avoiding bias. RACGP has systems and processes to ensure that decision making processes are not improperly influenced.
Table 1 - Examples of conflicts of interest
You are an RACGP Board member who is also a director of a company that supplies medical equipment – creating a conflict of directors duties. Management includes: disclosing this conflict, recording the conflict in the register and removing yourself from discussions (on each organization) where the other company is discussed.
You are an RACGP Senior HR Business Partner (SHRBP) part time. You are also an owner and director of a cleaning company. Your brother is the manager of the cleaning company. The cleaning company has tendered for the RACGP cleaning contract. Management includes: You are not involved in the procurement. You should ensure your manager is aware and that the cleaning company role is recorded on the register.
You are an RACGP Medical Educator (ME) part time and also part owner of a medical practice where you work two days per week. Whilst working at the practice you supervise GPs in training. In your RACGP role you are asked to review a complaint submitted by a supervisor about one of the registrar’s that you are currently supervising. Management includes: Identifying the conflict, declining to undertake the review of the complaint. Recording your role at the practice in the register and ensuring that your supervisor and colleagues are aware. Be clear what hat you are wearing when.
You are an RACGP Policy Officer also works part-time at a University. In your work at the University you undertake research where you will be interviewing supervisors of international medical graduates in the Fellowship Support Program. There is a reasonable concern that interviewees may perceive that you are conducting the research on behalf of RACGP. Management includes: Actively clarifying that you are not undertaking the research on behalf of RACGP and taking all reasonable steps to ensure this is clear. Record your work and role at the university in the register.
You are an RACGP Senior Manager works in the Education business unit. Your spouse runs a business “Awesome MED Training” creating medical education content for CPD. RACGP contracts Awesome MED Training as a CPD provider. This situation could give rise to both an actual or perceived conflict of interest and must be disclosed and managed. Management includes: Ensuring that your manager is aware of the relationship, ensuring that you are not involved in procurement or oversight of the contract. Recording this in the register.
You are the Chairperson of an RACGP faculty council. A venue that has hosted many faculty events invites you to as their guest to a Christmas gala event where you will likely receive a ‘goody bag’ containing an expensive bottle of wine and enjoy a three course meal with beverages. The RACGP will soon be deciding where to host their million dollar flagship conference and you believe this venue is an excellent location. Management includes: You should decline the invitation as there may be a problem with appearances, even though you do not decide where to host the event. It could be perceived that you are gaining a personal advantage from your official position. You should declare any gifts on the register and not participate in any deliberations about awarding the contract.
4.Management of conflicts of interest
There are a range of options to manage conflicts of interest. Often a combination of strategies will be required. Discussing the conflict with colleagues, managers or chairperson and recording the disclosure of a conflict of interest in a register is an important step, however this does not necessarily resolve the conflict. Management of any potential conflict should minimise its effects in the best interests of the RACGP. It may be necessary to assess the situation and determine whether one or more of the following strategies is also required: remove, restrict, recruit and relinquish or resign (see in Table 2). As a membership organisation your interest must be more than other members or even a sub-group o members.
In some cases, multiple options can be combined depending on the circumstances. Where the conflict affects the CEO, the Chair of the Board will assess and approve the manner in which the conflict is to be managed.
Table 2
| Management strategy |
When most suitable |
|
| Recording or disclosing the conflict |
RACGP requires a record of other business interests.
It is important you disclose a conflict when it is identified – to your manager, the chairperson or committee. The board or committee must agree how best to manage the conflict. |
- Employees should do this as it is a requirement of their RACGP employment agreement.
- Directors and Councillors as well as employees must record conflicts as a requirement in Government contracts (e.g. funding agreements).
- Entry in COI folio register – renew on 01 Feb each year
|
| Remove |
You should not participate in any decisions where you have a personal or financial interest. You should consider not attending meetings or ensuring that you do not receive information about the decision. |
- RACGP employees (or board members/ councillors) that are also Supervisors must not participate in decisions about their practice or that of their direct competitors.
- Board members must not participate in deliberations about other companies where they also hold directorship
|
| Restrict |
Where possible – and where conflict has been identified - access to information or in decisions should be restricted. Where this is not possible they must not access this information.
The restriction should be to the extent that it minimises the conflict.
Monitoring occurs to check whether this remains the appropriate option |
- The RACGP staff member that part owns a cleaning business should not see the documentation for the cleaning contract and should not be able to see the tenders.
- Board members cannot access information through application of restrictions in Diligent
- The RACGP staff member that has applied for an RACGP grant does not see other applications.
|
| Recruit |
Where it is not practical to restrict involvement, managers may direct that an impartial third party is engaged to provide advice.
Group decision making is an important way to manage conflict, particularly in membership organisations. |
- Where decisions can be made by a committee rather than one person this can manage some conflicts of interest
|
| Relinquish or resign |
Staff may be required to relinquish their personal or private interest.
Resignation from a committee or a role may be required where the conflicting private interest cannot be relinquished. |
- Board members cannot participate in examiner roles or standard setting or marking.
- Board members cannot participate as members of Appeal panels.
|
5.Questions to ask
In considering how a conflict of interest is to be managed, particularly arising from personal connection or relationship you can ask yourself:
1. Role: What decision will I make in this role? What information do I have access to?
2. Relationships: What relationships could amount to a personal interest?
3. Connection: Is there a logical connection between the decision to be made and the personal interest?
4. Objective test: What would a reasonable observer think? My view is not relevant.
5. Other matters: Are there other contextual matters to consider? Is the conflict material? What is the amount, scope, and likelihood of any expected benefit?
Will your involvement in the decision undermine public trust and confidence in RACGP?
Boards and committees should discuss conflicts of interest at the commencement of meetings as a standing agenda item.
6.Conflict of interest declarations
When you commence and appointment, employment, or when you change roles – and each year on 01 February you should complete a conflict of interest declaration. Remember that your declaration must be kept up to date and should include the agreed action taken to manage the conflict of interest. New interests which may generate conflicts must be declared through the online form as soon as they occur.
7.Further information
Discuss conflicts with your manager or the chair of the board or committee. If you or your manager are unsure how to assess or manage your particular situation, further advice can be sought from legal@racgp.org.au.
1. This Guidance supports the RACGP Conflict of Interest and Related Party Transactions Policy – if there is any inconsistency the Policy will prevail.
i. NSW ICAC Managing Conflict of Interest in the NSW Public Sector. June 2019 @ 5