Managing Conflict of Interest - Organisation for Economic Co ...

86 Managing Conflict of InterestAs in chess, placing the King “in check” is a dangerous proposition.However, while simply being “in check” must be resolved, itis not of itself fatal unless the conflict cannot be resolved. Similarly,COI situations in the public or private sector are not necessarily corruptionitself, but are potentially damaging or politically dangerousand must be identified and managed. A COI situation that isnot identified, managed, and resolved appropriately can lead tocorruption.Determinants of Conflict of Interest: Relevance and ContextThe environment in which COI occurs is rapidly changing.There are new forms and approaches to delivering and managingpublic goods and services, blurring lines between public andprivate sectors and creating new gray areas. Moreover, increasingcomplexity in society including advances in education, multiculturaldynamics, and rising demand for information by the mediaand general public, also contribute to waning public confidence inpublic institutions.The source of COI is any kind of personal bias based on personalrelationships (community, ethnic, or religious), material interests,business interests, and professional or political affiliations. Anyinterest is relevant if it could be reasonably considered to improperlyinfluence a public official’s performance of duties in the relevantcircumstances or context.Figure 1: Potential Sources of Conflict of InterestWhich activities and situations are identified as holding potential for conflicts of interest for officials?AssetsLiabilities, debtsPersonal relationshipsFamily relationshipsBusiness interestExternal activities and positionsGifts, benefits and hospitality0 5 10 15 20 25 30Number of countriesSource: OECD. 2003. Managing Conflict of Interest in the Public Service: OECD Guidelinesand Country Experiences.ADB/OECD Anti-Corruption Initiative for Asia and the Pacific