Conflict of Interest

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Revision/Review Date Board Approval Date Effective Date

Policy

 It is in the best interest of PIC to be aware of and properly manage all conflicts of interest and appearances of a conflict of interest.  A conflict of interest arises when a staff member has a personal interest that conflicts with the interest of PIC or in situations where a staff member has divided loyalties (also known a “duality of interest”). It is the duty of all staff to: be aware of this policy; identify conflicts of interest or situations that may result in the appearance of a conflict; and disclose these circumstances to (i) the employee’s supervisor (ii) the Deputy Director/Human Resources.  Situations or transactions arising out of a conflict of interest can result in either inappropriate financial gain or the appearance of a lack of integrity in PIC’s decision-making process.  Both results are damaging to PIC and are to be avoided. 

Practice

  1. For purposes of this policy, the following circumstances shall be deemed to create a Conflict of Interest:
    1. An employee or family member of an employee is a party to a contract, or involved in a transaction with PIC for goods or services.
    2. An employee or a family member of an employee engaged in some capacity or has a material financial interest in a business or enterprise that competes with PIC.
    3. An employee or family member of an employee has a material financial interest in a transaction between PIC and an entity in which the employee of a family member of the foregoing is a director, officer, agent, partner, associate, employee, trustee, personal representative, receiver, guardian, custodian or other legal representative.
    4. An employee shall not provide therapy or related services outside of his or her employment with PIC to any child residing in the agency’s service region who is at the time of such service is three years of age or younger, or enrolled for services.  An employee shall not directly or indirectly solicit employment outside of PIC from the families of those children.  Employees may not work for another employer if that employment creates a conflict of interest with their work at PIC or interferes with their ability to properly perform their job duties at PIC.
    5. PIC expects its employees to avoid all actual or potential conflicts of interest including influencing any decision from which an employee or an employee’s relative may realize personal gain or benefit.  Further, Employees must not work with their loyalty divided between PIC and some other organization or person.
    6. Employees are encouraged to serve on community committees and boards.  However, it is the policy of PIC that political activity on the part of the employee must not be done during scheduled work hours or at the location of employment.  Political activity on the part of the employee outside working hours or the workplace must not suggest any endorsement whatsoever by PIC.  No person may require any assessment, subscriptions, contributions or service for any political party from any employee.
  1. When the conflict involves a decision-maker, the person with the conflict (“interested party”): 
    1. must fully disclose the conflict to all other decision-makers; 
    2. may not be involved in the decision of what action to take but may serve as a resource to provide other decision-makers with needed information.
    3. Staff should disclose to their supervisor, department manager, or executive director as soon as the person is aware of a conflict, potential conflict or appearance of conflict.  Staff will complete a Conflict of Interest form to disclose their potential conflict to the agency.
    4. In some cases, the person with the conflict may be asked to recuse him/hers from sensitive discussion so as not to unduly influence the discussion of the conflict
    5. In all cases, decisions involving a conflict will be made only by disinterested persons.
  1. The Executive Directors will monitor proposed or ongoing transactions of the organization (e.g., contracts with vendors and collaborations with third parties) for conflicts of interest and disclose them to the Board and Staff, as appropriate, whether discovered before or after the transaction has occurred.

Gifts, Gratuities and Entertainment 

Accepting gifts, entertainment or other favors from individuals or entities can also result in a conflict or duality of interest when the party providing the gift, entertainment, favor does so under circumstances where it might be inferred that such action was intended to influence or possibly would influence the interested person in the performance of his or her duties.  This does not preclude the acceptance of items or entertainment of nominal or insignificant value, which are not related to any particular transaction or activity of PIC. 

Definitions:

  1. A “Family Member” is a spouse, parent, child or spouse of a child, brother, sister or spouse of a brother or sister, of an interested person.
  1. A “Material Financial Interest” in an entity is a financial interest of any kind, which, in view of all the circumstances, is substantial enough that it would, or reasonably could, affect an Interested Person or Family Member’s judgment with respect to transactions to which the entity is a party.
  1. A “Contract or Transaction” is any agreement or relationship involving the sale or purchase of goods or services, the providing or receipt of a loan or grant, the establishment of any other type of financial relationship, or the exercise of control over another organization.  The making of a gift to PIC is not a Contract or Transaction.