As we said earlier, the conflict of interests can manifest itself in many forms. Now, we will review all twelve typical situations of prevention and order of conflict of interest settlement in organizations, institutions, enterprises in the state and municipal service according to to Annex 3 of the to the Methodological Recommendations of the Ministry of Labor of Russia. On the basis of which, the responsible person for combating corruption appointed by order in the institution, and develop a memo for further use in anti-corruption work.
The list of possible typical situations of conflict of interest includes:
- An employee of an enterprise A participates in making decisions that can bring tangible or intangible benefits to persons who are his relatives, friends or other persons with whom his personal interest is related.
For example:
A bank employee making decisions to issue a bank loan takes such a decision with respect to his friend or relative.
Possible settlement methods:
- Suspension of the employee from taking the decision that is the subject of a conflict of interest.
- An employee of organization A participates in making personnel decisions with respect to persons who are his relatives, friends or other persons with whom his personal interest is related.
Example:
The head takes a decision to increase the salary( payment of a premium) in respect of his subordinate, who is also related to him by family relations.
Possible settlement methods:
- Suspension of the employee from making a decision that is the subject of a conflict of interest;transfer of an employee( his subordinate) to another position or change in the range of his duties.
- An employee of an institution A or another person with whom an employee's personal interest is connected, performs or intends to perform paid work in an organization B having a business relationship with an organization A intending to establish such a relationship or is its competitor.
Example:
An employee of an institution responsible for the procurement of tangible assets makes a selection from a limited number of suppliers. The head of the sales department of one of the potential suppliers is a relative of the employee of the institution.
Example:
An employee of an organization with confidential information about the organization's activities receives a job offer from an organization that is a competitor of its immediate employer.
Possible settlement methods:
- Suspension of the employee from making a decision that is the subject of a conflict of interest;
- recommendation to the employee to refuse to perform other paid work.
- An employee of enterprise A or another person with whom a personal interest of an employee is connected performs or intends to perform paid work in an organization B that is a parent, subsidiary or otherwise affiliated with enterprise A.
Example:
An employee of institution A performs part-time work in anotherorganization B, which is a subsidiary of the institution A. At the same time, the employee's employment duties in institutions A are related to exercising supervisory powers with respect to organization B.
Voble ways of settlement:
- Changing the duties of the employee;
- removal of an employee from the performance of work duties in respect of a parent, subsidiary or otherwise affiliated organization;
- recommendation to the employee to refuse to perform other paid work.
- An employee of enterprise A decides to purchase enterprise A of goods that are the results of intellectual activity for which he or another person with whom the employee's personal interest is related has exclusive rights.
Example:
An employee of an organization that provides transport services to the public in the field of public transport, decides on the purchase of automatic means of controlling passengers based on technological developments, patents on which belong to the employee.
Possible settlement options:
- Suspension of the employee from making a decision, which is the subject of a conflict of interest.
- An employee of an institution A or another person with whom a personal interest of an employee is connected owns securities of organization B that has business relations with institution A, intends to establish such a relationship or is its competitor.
Example:
An employee of organization A decides to invest the funds of organization A. A potential investment object is enterprise B, whose securities belong to the employee.
Possible settlement methods:
- Suspension of the employee from making a decision that is the subject of a conflict of interest;
- change of employee's work responsibilities;
- a recommendation to an employee to sell available securities or transfer them to trust management.
- An employee of organization A or another person with whom a personal interest of an employee is connected has financial or property obligations to organization B that has business relations with organization A, intends to establish such relationship or is its competitor.
Example:
An employee of institution A has credit obligations to organization B, while employee A's labor responsibilities include making decisions on borrowing.
Possible settlement methods:
- Suspension of the employee from making a decision that is the subject of a conflict of interest;
- change of employee's work responsibilities;
- assistance to the employee in the performance of financial or property obligations, for example, by granting a loan by the employing organization.
- An employee of institution A takes decisions on establishing( maintaining) business relations of institution A with organization B, which has before the employee or other person with whom the employee's personal interest is connected, financial or property obligations.
Example:
Enterprise B has a debt obligation to the employee of organization A for the use of goods that are the results of intellectual activity, to which the employee or other person with whom the employee's personal interest is related has exclusive rights. At the same time, the authority of the employee of organization A includes making decisions on the preservation or termination of business relations between organization A and enterprise B, in which enterprise B is very interested.
Possible settlement methods:
- Suspension of the employee from making a decision that is the subject of a conflict of interest;
- change of employee's work duties.
- An employee of an institution A or another person with whom a personal interest of an employee is connected receives material goods or services from organization B that has business relations with institution A, intends to establish such a relationship or is its competitor.
Example:
An employee of organization A, whose work duties include control over the quality of goods and services provided to the organization A by counterparties, receives a significant discount on the goods of organization B, which is the supplier of the company A.
Possible settlement methods:
- Recommendation to the employee to refuse the providedgoods or services;
- dismissal of the employee from the decision, which is the subject of a conflict of interest;
- change of employee's work duties.
- An employee of enterprise A or another person with whom a personal interest of an employee is connected receives expensive gifts from his subordinate or other employee of enterprise A, against whom the employee performs control functions.
Example:
An employee of an organization receives an expensive gift from his subordinate on the occasion of his birthday, while the employee's authority includes making decisions on raising salaries for subordinate employees and appointing them to higher positions in the organization.
Possible settlement methods:
- Recommendation to the employee to return an expensive gift to the donor;
- establishing corporate rules of conduct recommending refraining from donating / accepting expensive gifts;
- transfer of an employee( his subordinate) to another position or change in the range of his duties.
- An employee of institution A is authorized to make decisions on establishing, maintaining or terminating business relations of institution A with organization B, from which he receives a job offer.
Example:
Organization B is interested in concluding a long-term lease of production and retail space with institution A. Organization B makes an offer of employment to an employee of institution A authorized to take a decision on concluding a lease agreement or to another person with whom a personal interest of an employee of institution A.
Possible settlement options:
- Suspension of the employee from making a decision, which is the subject of a conflict of interest.
- An employee of organization A uses information that has become known to him in the course of performing his job duties, in order to obtain benefits or competitive advantages in making commercial transactions for himself or herself, with whom the employee's personal interest is related.
Example:
An employee of organization A, engaged in exploration and production of mineral resources, reports on the interest of organization A in the acquisition of land to the owner of these sites, which is his friend.
Possible settlement options:
- Establishment of rules of corporate conduct prohibiting employees from disclosing or using for personal information information that has become known to them in connection with the performance of their duties.
