Conflict of Interest Policy

Principle statement 

​​​​​​​All potential, actual or perceived conflicts of interest or conflicts of commitments / outside positions must be avoided. Where this is not possible, they must be disclosed and registered centrally.

 

Definitions 

  • "Conflict of interest" is a term used to describe a situation whereby a stakeholder (directly, or through close personal relations) could benefit (financially or otherwise) from a transaction or business decision of Laudes Foundation or its affiliated entities. Whether an actual, potential or perceived conflict of interest occurs is highly contextual. For example, a conflict of interest can occur when a Laudes Foundation stakeholder: 

  1. holds a remunerated or decision-making position (e.g. board member) at an organisation to whom Laudes Foundation intends to offer a grant or service contract, 
  2. is involved in approval of a grant or contract with an organisation where their direct family members or close friends are working, or 
  3. will receive or has received a financial or reputational gain as a result of a business transaction by Laudes Foundation (e.g. nominated to a board position afterwards). 

  • "Conflict of commitment” may occur when an outside position requires a commitment of time or effort during office hours that directly or indirectly affects the stakeholder from meeting his or her obligations to Laudes Foundation. 

  • “Outside position” is defined as a role, interests or appointment, which can be remunerated or not, with any commercial, not-for-profit organisation or governmental or advisory body, operating in the space that is relevant to the activities of Laudes Foundation or any of its affiliates. Examples of outside positions are: 

  1. Trustees or board memberships at an NGO or social enterprise 
  2. Employment, consultancies, and teaching assignments 
  3. Advising / counselling a public welfare organisation or multi-stakeholder platform (e.g. municipality, World Economic Forum) 

  • “Transaction” is described as an event involving an interchange of goods, money or services between two or more parties. 

 

Key principles 

  • Laudes Foundation expects its stakeholders to always act with integrity and professionalism, keeping in mind the best interests of Laudes Foundation and its affiliates, in accordance with the Code of Ethics. 

  • All full time staff members are expected to accord Laudes Foundation as their primary professional concern and commitment, unless explicitly agreed in their employment agreement or terms of engagement. 

  • When stakeholders are involved in the preparation of any transaction, they should first assess the likelihood of a potential or perceived conflict of interest or conflict of commitment. 

  • Any actual, potential or perceived conflicts of interest or conflicts of commitment must be immediately disclosed to the line manager or Laudes Foundation contact person. 

  • Outside positions, commitments and interests should only be accepted if they do not conflict, directly or indirectly, with the stakeholder’s overarching commitment to Laudes Foundation or this policy. In case of doubt, stakeholders are encouraged to reach out to their line manager or the Head of Risk & Assurance for advice. 

  • All stakeholders are required to disclose all remunerated or non-remunerated outside positions to their line manager or Laudes Foundation contact person at the time of their first contact. 

  • All remunerated outside positions or interests are subject to the acceptance and written approval of the line manager. All such positions must be recorded in a central register, maintained by the Head of Risk & Assurance. 

  • Any referral by the stakeholders to an organisation that could become a potential grantee, supplier or employee of Laudes Foundation is not necessarily a conflict of interest, as long as the referrer is not the decision maker. However, to avoid any perception of a conflict of interest, transparency about the involvement of the referrer is paramount. 

  • Failure to disclose a conflict or abide by this policy may result in disciplinary action, including termination of agreement and / or removal from the Laudes Foundation governance body.