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A conflict of interest occurs when a person, often a board member, but sometimes an administrator, is in a situation where their personal interests, financial or otherwise, may compromise (or appear to compromise) their ability to make impartial and objective decisions in their role within the organization.

These personal interests can include financial gain, personal relationships, or affiliations with entities that the organization interacts with. By actively addressing and avoiding conflicts of interest, Community Board members and Academy administrators can maintain trust, uphold their fiduciary duties, make fair decisions, and operate with transparency and accountability, ultimately better serving the mission of the college and its communities of interest.

Here is the Academy's Conflict of Interest Questionnaire

Example of a Conflict of Interest

Avoiding conflicts of interest is of paramount importance for several reasons:

The Academy, like all other non-profit organizations, relies on the trust of its stakeholders, including students, faculty, staff, alumni, patients, donors, and the public. Conflicts of interest, if unaddressed, can seriously erode stakeholder trust and damage the reputation of the organization, making it less effective in achieving its mission.

Board members have a legal and ethical duty to act in the best interests of the organization. A conflict of interest can compromise a board member’s ability to fulfill this duty, potentially resulting in financial harm or other negative consequences for the college.

Conflicts of interest can and often do lead to biased decision-making, which violates a board members fiduciary duty. Board members must make decisions that are in the best interests of the college, free from personal bias, to ensure fair and equitable treatment of all stakeholders.

Many laws and regulations govern the operation of non-profit organizations in general and educational institutions specifically, and numerous regulatory agencies treat conflicts of interest seriously. Failure to address and avoid conflicts of interest can lead to legal and regulatory violations, potentially resulting in fines or legal action against the organization.

Maintaining transparency in the Academy’s operations is crucial. Disclosing and addressing conflicts of interest demonstrates accountability to stakeholders and ensures that decision-making processes are transparent and fair.

Stakeholders and the public want to know that their contributions to the college, whether financial or otherwise, are being used effectively to advance the Academy’s mission. Avoiding conflicts of interest helps preserve confidence in the organization’s ability to achieve its goals.

To address conflicts of interest, the Academy’s bylaws includes a section on conflict of interest (Article 5). All Community Board members complete an annual Conflict of Interest questionnaire, which is accessible online via the Community Board website.

Generally speaking, avoiding conflicts of interest requires:

Board members are required to disclose any potential conflicts of interest in a timely and transparent manner. This disclosure should cover financial interests, personal relationships, or affiliations that could potentially create a conflict. Conflicts of interest may be genuine or merely apparent. An apparent conflict of interest is sometimes as damaging in terms of perceptions as a genuine conflict, and so it should always be disclosed. It is much better to err on the side of over-disclosure when considering conflicts of interest.

Here is the Academy's Conflict of Interest Questionnaire

Board members with genuine conflicts of interest should always recuse themselves from discussions and decisions that pertain directly to those conflicts. They should not participate in any discussions or votes where their personal interests are at stake. To preserve confidence, recusal may be appropriate even if conflicts are only apparent rather than genuine.

The organization should maintain transparency by documenting and making public all disclosed conflicts of interest and the actions taken to address them.

In some cases, an independent committee or individual within the organization may review and address conflicts of interest to ensure impartiality.