Island Farmers' Alliance Conflict of Interest and Code of Conduct Policy
(adopted June 17, 2008)
IFA conflict-of-interest policy should clearly identify that if an action on the part of an IFA Board Member is perceived by the membership to be a conflict of interest, then the conflict exists. The perception of a conflict of interest, whether or not one actually exists, compromises the trust that the membership places in the Board of Directors.
Board members are encouraged to disclose any conflict of interest situation to the board chair at the earliest opportunity and in any case proper to the participation in any board discussions or receipt of confidential information regarding an applicant which may give rise to a conflict of interest. The chair, or majority vote, shall rule on whether a conflict of interest situation is present. The Board member in question is to abstain from voting, and should leave the room during the discussion.
Examples: The following are considered to be actual or apparent conflict of interest, they are to be avoided:
- Using or appearing to use, or revealing without proper authorization to persons outside the organization, for personal gain, any information acquired during the course of an individual's duties that is not generally available to the public.
- Using or permitting others to use, the organization's volunteer, employees, property, equipment, materials, or time for personal gain.
- According preferential treatment beyond the common courtesies usually associated with accepted business practice and prerogatives of office to friends, relatives or to organizations in which the individual or relatives and friends have an interest, financial or otherwise.
- Using the organization's name or one's position with the organization in such a way as to lend weight or prestige to sponsorship or endorsement, without proper authorization, of a product or service of another company.
The following are considered to have the potential of being in conflict or appearing to be in conflict. They are to be disclosed and are subject to review and advice by the board of directors or the board chair.
- Investments in a supplier or customer or in any other company, partnership, association or commercial entity that has a significant present or prospective business relationship with the organization.
- Contracts, agreements or undertakings between the individual and a supplier, customer or any other company, partnership or commercial entity that has a significant present or prospective business relationship with the organization.
- Seeking or accepting from the aforesaid, directly or indirectly, loans (except from financial institutions at rates available to the public), services, payments, commissions, entertainment or gifts.
- Serving as a director, officer, employee, member or consultant of the aforesaid or of any other organization if such service could either place on an individual demands inconsistent with their duties, call into question their capacity to perform those duties in an objective manner, or cause job performance to suffer.
- Acquisition of real estate or other forms of property of present or prospective interest to the organization.
At time, even though an apparent conflict of interest is apparent, the board may decide to go ahead anyway. The important thing is that a policy be in place, directors are all aware of the potential for conflict and the appearance to those outside the board ie; the general membership and public. The appearance of conflict does not mean that an actual conflict exists. Most conflicts fall into a gray area where ethics and public perception are more relevant than statutes or precedents.