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 ...view middle of the document...
WA Government Integrity Coordinating Group Six P’s Approach
Corporate duty verses private interest | Pricing of services may rise over time above market rates and be tolerated by the Contract Manager or alternatively the quality of service may decline and still be tolerated in conflict with interests of the Company. |
Potentialities | Due to the close relationship Doug may offer the contractor personal gifts or benefits and build the value into the price of the service. The relationship make eventually become common knowledge as both the Contract Manager and Doug share the same surname.Discipline action may eventuate due to non disclosure and more serious improper actions. |
Perception | If discovered that the Contract Manager and Doug are brothers it is likely he will be disciplined for breaching Company conflict policy. In addition non disclosure by the Contract Manager will be perceived as due to improper actions in tender process and ongoing managing of this maintenance provider. |
Proportionality | Contract Manager’s involvement in the tender process provides opportunity to influence the decision making. He is regarded as a specialist being the Contract Manager and hence his opinions will have considerable weight in decision making. A potential bias is very possible.The value of the contract being $450,000 over three years also emphasises the importance of disclosing the conflict of interest and consequences if discovered. |
Presence of mind | Ignoring the conflict which is what he appears to be doing by non disclosure would if discovered would incriminate him. |
Promises | It is likely his brother Doug will be relying on him to show partiality in his favour and promises are likely. It is likely his brother Doug will be relying on him to show partiality in his favour and promises are likely.In addition, it is very likely he agreed...