CONFLICT OF INTEREST POLICY
1. Introduction
1.1 Aberdeen Multicultural Centre (AMC) is a registered charity (Charity Number: SC 042536) registered on 26 August 2011 and transferred to a SCIO SC048576 on 25 July 2018. All AMC Board of Members are therefore Charity Trustees and are subject to relevant legislation and regulation as it applies to charitable organizations in Scotland. The specific sections of charity law in Scotland dealing with Conflict of Interest are:
Charities and Trustee Investment (Scotland) Act 2005 (Section 66)
The Scottish Charitable Incorporated Organizations Regulations 2011 (Regulation 2)
1.2 This Policy reflects the core AMC Value of Integrity, Honesty, and Transparency. 1.3 This policy reflects the responsibilities of Board members as outlined in the Trustees Code of Conduct.
2. Purpose and Aims
2.1 This Policy is a requirement under the above regulation, and its purpose and aims are to protect the integrity of the AMC’s decision-making process, to enable stakeholders to have confidence in the AMC’s integrity, and to protect the integrity and reputation of Board members.
2.2 The Policy embodies the Board of Management commitment to best practice and probity in decision-making.
3. Scope
3.1 This Policy applies to members of the Board of Management, specifically with regard to instances in which Board members are involved in making decisions on behalf of the AMC
4. Policy Statement
4.1 All members of the Board of Management must, in exercising functions in that capacity, act in the interests of the charity (Charities Act 2005 66 (1)).
4.2. Board members must seek to ensure that the AMC acts in a manner consistent with its purposes.
4.3. Board members must act with care and diligence, and put the interests of the AMC before those of another organisation or person.
4.4 Where any other duty prevents the Board member from putting the interests of the AMC before those of another organisation or person, the member must disclose the conflicting of interest, and refrain from participating in any deliberation or decision of the other charity trustees with respect to the matter in question.
4.5. All Board members will strive to avoid any conflict of interest between the interests of the AMC on the one hand, and personal, professional, and business interests on the other. This includes avoiding actual conflicts of interest as well as the perception of conflicts of interest.
5. Definitions with Examples (Ref. oscr.org.uk).
5.1. A conflict of interest is any situation where there is a potential for a charity trustee’s personal or business interests (or the interests of someone they are connected with) to be different from the interests of the charity. In this situation, it may sometimes be difficult for the charity trustee to make an impartial decision. However, with proper handling charity trustees can overcome these difficulties.
5.2. There are two main types of conflict of interest: i. Appointment conflict: This is a conflict of interest which can arise between a charity trustee and the person or organisation which appointed them. For example: A charity trustee appointed by a local school, church or local authority and a decision is required on a matter which affects both the charity and the other organisation. ii. Personal conflict: When you might not be able to do what is best for the charity because it conflicts with your own personal or business For example: When a charity (i.e. the AMC) is considering a contract with a business and one of the charity trustees is also a director of that business, or of a competing business. In both cases, the charity trustee duties require you to act in the interests of the charity.
5.3. The term ‘conflict of interest’ can cover a range of situations and may also be called a ‘conflict of roles’ or ‘conflict of duty’. Examples (drawn from those provided by OSCR) wherein: • A charity trustee could derive financial benefit from a decision the charity has to make. • A charity trustee is discussing a contract or business arrangement with an organisation linked to the trustee’s family.
A charity trustee is also an employee of a company with which the charity has business links.
An employee, or potential employee, of the charity is connected to one of the charity trustees.
A trustee of two or more charities are in competition with each other for the same grant(s) or funding.
A trustee of a charity that gives out grants and a trustee of another charity is applying for one of these grants.
A trustee of a charity that is part of a group structure is on the board of the parent charity.
A trustee of a charity is also a service user or customer. • A charity trustee is applying for a job in the charity
6. Responsibilities (of Board Members)
6.1. Upon appointment each Board member will make a full written disclosure of interests, such as relationships and posts held, including any that could potentially result in a conflict of interest. This written disclosure will be kept on file, published on the AMC website, and will be updated annually or as and when appropriate.
6.2. In the course of meetings or activities, Board members will disclose any interests in a transaction or decision where there may be a conflict between the AMCs’ best interests and the Board member’s best interests, or a conflict between the best interests of two organisations that the Board members is involved with. If in doubt the potential conflict must be declared anyway, and clarification sought.
6.3. If a Board member suspects they may be, or may potentially be in a position of conflict of interest, or if there may be the possibility of this being perceived as such, the Board member concerned must raise the matter with the Chair of the Board, failing which, the AMC Secretary.
7. References:
7.1 OSCR Scottish Charity Regulator Guidance and Good Practice for Charity Trustees: https://www.oscr.org.uk/guidance-and-forms/guidance-and-good-practice-for-charitytrustees/conflict-of-interest
7.2 Scottish Government: https://www.gov.uk/government/publications/conflicts-of-interest-a-guide-for-charitytrustees-cc29