conflicts of interest policy - Cambridge University Students' Union

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It is the potential, rather than the actual, benefit from which the conflict of interest arises whichrequires authority. In order to avoid a breach of trust and to ensure transparency, authority isrequired where there is a possibility of benefit. This will avoid accusations of impropriety, whichcould in turn have a damaging effect on the reputation of Cambridge University Students’ Union(CUSU).Benefits that are available to all members of the community, or that are of inconsequential or oflittle measurable value will not normally need to be authorised; such is likely to be most relevant toSabbatical and Member trustees who will benefit from the services CUSU provides for itsmembership in general.POLICY STATEMENTTrustees should not be in a position where their personal interests and their duty to act in the bestinterest of the charity conflict, except where a benefit to them, or others connected with them, islegally authorised and any conflict of interest is properly and openly managed.CUSU is committed to upholding an exemplary standard of governance by preventing, identifyingand acting upon corruption, fraud and irregularity. Trustees are expected to act with the higheststandards of integrity and probity in all dealings to do with CUSU. The trustees, CUSU Coordinatorand General Manager in particular are expected to lead by example in ensuring that the highestlevels of behaviour are adopted.Trustees must not use their office (or, in the case of Sabbatical Trustees, employment) for personalgain and should act at all times in good faith and in the interests of CUSU. This Conflict of InterestPolicy is designed to assist trustees to identify, disclose and manage any real, perceived or potentialconflicts of interest in the performance of their duties. This Policy ensures all trustees are aware oftheir obligations to disclose any conflicts of interest they may have, and to comply with the legalrequirements upon trustees of a charity.Breach of this policy, or failure to comply with the strategy for managing the conflict of interest, maylead to disciplinary action or other appropriate action against trustees by Union Council.FORMS OF CONFLICT OF INTERESTConflict of interests involve direct financial gain or benefit to the trustee, such as:a) Payment for services provided to the charity;b) The award of a contract to another organisation in which the trustee has an interest andfrom which the person will receive a financial benefit.c) Positions of office held within another organisation.d) Shareholdings, investments or other business interests held by the individual or a familymember.e) The employment of a trustee in a separate post within the charity, even when the trusteehas resigned in order to take up the employment.PAGE 2 OF 8
f) Indirect financial gain, such as employment by the charity of a spouse or partner of atrustee, where their finances are interdependent.g) Non-financial gain, such as when a user of the charity’s services is also a trustee.h) Conflict of loyalties, such as where a family member or friend of a trustee, is employed bythe charity or where a personal relationship exists between members of staff or between atrustee and a member of staff which could lead to a suspicion of favouritism or preferentialtreatment.AVOIDING CONFLICTS OF INTERESTTrustees have a duty to avoid a situation in which they have, or can have, a direct or indirect interestthat conflicts, or possibly may conflict, with the interests of CUSU, unless the matter has been dulyauthorised.Each trustee is individually responsible for disclosing any potential or actual conflicts of interest thatmay impact on their roles and responsibilities at CUSU. When deciding on such matters,consideration must also be given to how things could appear to others and, in all cases, individualsshould err on the side of caution, declaring an interest if there is any possibility that a conflict ofinterest may exist. The General Manager will be available to offer advice and information toindividuals about this Policy and whether an issue falls within the definition of a Conflict of Interest.All trustees need to be alert to possible conflicts of interest which they might have and to how theycan minimise their effects. A key aspect of minimising the effects of conflicts of interest is to be openand transparent about such situations when they arise:i) If trustees are in any way directly or indirectly interested in any transaction or arrangementrelated to CUSU, trustees are required to duly declare their interest.ii) Trustees may not accept gifts or favours, except when not to do so would damage therelationship with an external party. Any such gifts or favours should be declared to theGeneral Manager or the President.iii) Any excessive offers of gifts, favours, bribes, etc. should be reported immediately to theGeneral Manager in order to ensure that no suggestion of impropriety could be made in thefuture and in order for the General Manager to decide whether any further action should betaken against the external party.iv) Where conflicting personal relationships exist, these should be declared in the same way asrelationships with external organisations.v) The Charity Commission expects trustees to be able to identify conflicts of interest whenthey arise and to ensure, if they receive a material benefit as a result of the conflict ofinterest, that the benefit is authorised by the Commission. The Commission will provideauthority where there are clear advantages to the charity. If there is no material benefit to atrustee, no authority from the Charity Commission will be required, but the trustees will stillPAGE 3 OF 8
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