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Conflict of Interest

In: Business and Management

Submitted By goxley
Words 866
Pages 4
Part A: Conflict of Interest
Conflict of Interest
ElectroCo is a listed Company subject to Corporations Act and Listing Rules. The onus is on Company officers to act in good faith and not improperly use their position to gain an advantage for themselves or someone else. (Corporations Act 2001 Part 2D.1 s182).
Attribute standard 1120 defines a conflict of interest as a person who has: * “A position of trust, has a competing professional or personal interest” * “Competing interest can make it difficult to fulfil his or her duties impartially” * “A conflict of interest exists even if no unethical or improper act results.” * A conflict of interest could impair an individual’s ability to perform his or her duties and responsibility objectively.
The Contract Manager has the following conflicts: * Fails to disclose conflict of interest in tender invitation list ie brother; * Partakes in selection recommendation process whilst remaining silent about brother. * Failure to disclose conflict of interest to the CFO * Presents potential and perceived conflict with ongoing management of the service provider.

WA Government Integrity Coordinating Group stresses a conflict of interest is not necessarily wrong or unethical but must be managed to ensure the interests of the organisation take preference. Personal interests such as brothers interest should not influence or be perceived to influence duty to the Company.
By not disclosing the relationship with Doug the Contract Manager immediately is under suspicion of compromising the tender process by raising questions such as:
Has Doug been fed information which provides an unfair advantage?
Will Doug as a service provider be managed and reviewed objectively?
Is the Contract Manager been provided with a kick back?
A conflict of interest is clearly present according to the tow definiitons...

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