Topic Guide: Conflicts of Interest

One of the central tenets of public service is the subordination of personal interests to public interests; the failure to do so is the underlying cause of most unethical behaviour in the public sector.[1] A conflict of interest arises in a situation in which “a public official has a private or other interest such as to influence, or appear to influence, the impartial and objective performance of his or her official duties”.[2] As noted in this formulation, the appearance alone of a conflict of interest is sufficient to damage an institution's reputation.    

Despite this, it is important to note that conflicts of interest are themselves not evidence of wrongdoing; in fact, given that officials inherently occupy multiple social roles they are almost bound to occur.[3] With the right measures in place, conflicts of interests are quickly detected and easily defused – usually voluntarily – before any impropriety can take place.  

However, if these situations are not identified promptly and managed adequately, opportunities materialise for public officials to take advantage of their position to pursue private advantage at the expense of the public interest.[4] This private advantage should be understood broadly to include not merely illicit financial gain but also attempts to curry favour with potential future benefactors or employers and the professional advancement of friends and family.  

Thus, while an unambiguous legal definition of conflicts of interest is an essential part of any public sector integrity system, it is impossible to legislate for all possible conflicts of interest. It is therefore advisable for public officials to be able to seek guidance from an internal ethics commissioner or, better still, an external public ethics body.[5] Ethics training to educate public sector workers about conflict of interest legislation is also recommended.