Conflict of interest vs Corruption and Fraud
Mishandling a conflict of interest constitutes a breach of trust with one’s employer.
- It may compromise professional judgement and create doubts about a person’s fairness and integrity. It may also lead to criticism and reputational damage.
- If any advantage is offered or accepted when handling a conflict of interest, this may violate the Prevention of Bribery Ordinance.
- If false documents are used to conceal a conflict of interest, this may breach Section 9(3) of the Prevention of Bribery Ordinance.
- If fraudulent acts are involved to conceal a conflict of interest for personal gain or to benefit acquaintances, other criminal offences such as deception, fraud or false accounting, may also be involved.
Declaration and mitigation
The mitigating measure to be taken would depend on the circumstances of individual cases and the level of mitigation should commensurate with the severity of the conflict, the interest involved and others' perception
Proper documentation of the declaration, the rationale for the decisions made and the course of mitigating measure taken should be maintained.
Depending on the operational needs and circumstances, companies may require a staff member who participates in projects involving sensitive issues or information to declare whether or not they have any conflict of interest (i.e. positive declaration) on the matter in order to protect the interest of the companies.
Please click here for a sample code of conduct.
