NSO Guideline on Conflict of Interest Policy

NSO Guideline on Confict of Interest Policy

© World Scout Bureau Inc.

October 2022

World Scout Bureau

Asia-Pacifc Support Centre

Makati City, Philippines

asia-pacifc@scout.org

scout.org/asia-pacifc

Reproduction is authorised to National Scout Organizations and Associations which are members of the World Organization of the Scout Movement. Credit for the source must be given.

Introduction

This document describes Conflicts of Interests that might occur in a National Scout Organization and provides guidance to NSOs to develop their own Confict of Interest Policy to improve their internal governance mechanisms. All NSOs are strongly recommended to adhere to these guidelines as a minimum requirement.

What is Confict of Interest?

A confict of interest arises when there are competing interests for an individual that may impact on their decision-making role. A confict of interest can be defned as real, apparent or potential.

• A ‘real’ confict involves a direct confict between current business being considered and personal/private/ business/other organisation’s interest/other appointments or roles within the association.

• An ‘apparent’ confict of interest can be seen to exist when there is appropriate reason to believe that the private interests of an individual could improperly infuence the performance of his/ her duties, but this is not in fact the case. An apparent confict of interest may be serious because of the potential for doubt to exist about the integrity of the person.

• A ‘potential’ confict of interest may arise where a person has private/business/other organisation’s interest/other appointments or roles within the association which are such that a confict of interest would arise if he/she were to become involved in conficting offcial responsibilities in the future.

Private, personal interests are not limited to fnancial interests, or those which in general beneft a person. A confict of interest may involve otherwise legitimate private capacity activity, personal affliations and associations and family interests, if these interests could reasonably be considered likely to improperly infuence the performance of the responsibilities of a person.

Why is it important for an NSO to have a confict of interest policy?

PURPOSE

The purpose of a Confict of Interest Policy is to prevent the institutional or personal interests of a member of the NSO from interfering with the performance of their duties and to see that there is no personal, professional, or political gain at the expense of the NSO. The policy will not eliminate relationships and activities that may create a duality of interest but will require the disclosure of any confict of interest and the non-participation of any interested party in a decision that has a confict of interest.

The policy should help the NSO in Identifying, Preventing and Recording a Confict of interest.

COVERAGE

This guideline is applied for all the National, Sub-National and Local scouts groups, also including the staff, members and volunteers.

However, the Confict of interest policy of NSO may be adjusted for each level from time to time to meet the demands.

Steps in the implementation

1. IDENTIFYING A CONFLICT OF INTEREST

The members/individuals must declare a confict of interest immediately they become aware of any possibility that their personal or wider interests could infuence their decision-making.

A good guideline is:

“If in doubt, declare it.”

To remind the members/individuals of their duties, the WSC has a standard agenda item at the beginning of each meeting to allow members to declare any actual or potential confict of interest.

The Secretariat of the NSO keeps a register of declared interests, which is open to inspection. This is updated if the members/individuals’ circumstances change and when new members are appointed. a Confict of interest.

2. ADDRESSING WITH A CONFLICT OF INTEREST

Once a confict of interest is identifed, the NSO must prevent it from affecting decision-making by:

• fnding an alternative way forward which remedies the confict of interest; or

• taking appropriate steps to manage the confict, which will usually mean that the person affected does not take part in discussions or decisions regarding the issue.

It is important to declare a potential confict of interest, even though the members/individuals may believe it is irrelevant or unimportant, to allow the NSO to decide the consequences.

3. RECORDING A CONFLICT OF INTEREST

The NSO must keep a written record of each declared confict of interest and how the NSO dealt with it in the minutes of its meetings. This record must detail:

• what was the confict of interest;

• which the members/individuals were affected;

• whether any confict of interest was declared in advance;

• the discussion surrounding the confict of interest;

• whether anyone withdrew from the discussion; and

• how the members/individuals made the decision in accordance.

CONFLICT CERTIFICATION FORM

This form is to be flled up at the time of appointment of the member

I have read, understood and agreed to abide by the Confict of Interest Policy. To the best of my knowledge, I (circle one) have / do not have one or more conficts as described in this Policy. If applicable, all known conficts are noted below. I will give prompt notice of any additional confict of interest as it arises.

1.

Yes / No.

If yes, please provide details of your position and responsibilities:

2.

Yes / No.

If yes, please provide details of your position and responsibilities:

I hold a Scouting position of leadership or authority at the National level in the NSO.

I hold a position of authority at the Sub-national level in my Scout Region.

3. I, a member of my family, a related party or other organization that I control, ofer services in exchange for paid remuneration to Scout Organizations or related activities at any level.

Yes / No.

If yes, please provide details of the services you provide to Scouting in exchange for paid remuneration.

4. I, or a member of my family, have other appointments or responsibilities, which may afect my ability to fulfll the roles and obligations in NSO.

Yes / No.

If yes, please provide details of the appointments or responsibilities held by you.

Signature Date

Name (please print)

REGISTRATION OF COI FORM

Person and/or

Name Position

Organization with Interest

Nature of Confict of Interest

Date of Declaration

Annex : sample NSO COI

1. Confict of Interest Policy, Scouts Australia

2. Policy of Declaration of Interest, The Hong Kong Scout Association

3. Employee Confict of Policy, Boy Scouts of America

*Any NSO needing support in developing their NSO Confict Policy may upload service request under WOSM Services: Good Governance at https://services.scout.org/service- requests/new.

Scout Association of Hong Kong

Policy on Declaration of Interest

Pursuant to the circular re-categorization with effect from 1 January 2018, this Circular substitutes Administration Circular No. 08/2016 issued on 15 July 2016 with contents unchanged.

1. This circular promulgates the Association’s policy on declaration of interest, and advises all adult members of the Association (including Commissioners, Leaders, Lay members and Professional Scouters) on the course of action they should take when they come into a real or apparent conflict of interest while discharging their Scout duties or dealing with Scout business.

2. The basic principle of this policy is that all adult members sho uld make a conscious effort at all times to declare a potential conflict of interest situation and to avoid participating in discussions and/or decisions of Scout activities and/or business which are or might be perceived as related to such a situation. If deemed appropriate, the matter should be referred to a higher level in the administration hierarchy for advice and handling, in adherence to the Scouting spirit of honesty, impartiality, fairness and objectiveness.

Declaration of Interest Policy

3. The Association’s policy on declaration of interest, and the recommended course of action to be taken by adult members when a conflict of interest situation has arisen or is likely to occur are as follows:

3.1 All adult members must discharge their Scout duties with integrity and in an honest, impartial and objective manner, preserving as well the reputation of the Association.

3.2 Whenever an adult member is involved in any matter that may give rise to a conflict of personal interest (hereafter referred to as the Member concerned), he/she should report it to his/her supervising Commissioner, committee chairman, convenor or other person in-charge (hereafter referred to as the Supervisor), disclosing all information related to the potential conflict of interest situation. Having made the declaration, the Member concerned should refrain from engaging in the deliberation and/or decision -making processes over the matter in question unless authorized otherwise. Excusing himself/herself from related meetings is an appropriate way of avoiding such a conflict.

3.3 In the case of tendering, all tenderers and members of a tender board should make mandatory written declarations during tendering process as to whether or not they have conflict(s) of interest. Also, should the Member con cerned or the Supervisor consider it necessary due to the seriousness of the potential conflict(s), the Member concerned should also made a written declaration to be filed away. Under other normal circumstances, a verbal declaration of the possible conflict of interest which is recorded for future reference would be sufficient.

3.4 When the Member concerned is the decision maker or one of the key officers responsible for the matter, he/she should refer the matter to the appropriate person/unit one level higher in the administration hierarchy for handling. Sometimes, depending on the nature, scope and severity of the case, the matter may be more appropriately handled by the relevant Deputy Chief Commissioner, Chief Commissioner or the Executive Committee as the case may be.

3.5 “Personal interests” is not limited to monetary, financial and other material benefits, it also includes other non-pecuniary interests such as free service and special favour, preferential treatments, etc, to:

(i) the Member concerned and/or his/her spouse;

(ii) any close relations of the Member concerned and/or spouse (including parents; brothers and sisters and their spouses; children and their spouses);

(iii) the business partners/organizations which the Member concerned and/or spouse is serving full time or part time;

(iv) the client(s) and other person(s) to whom the Member concerned and/or spouse represent or offer advice in a professional capacity.

3.6 The essence of the policy on declaration of interest is to be proactive and be prepared. If in doubt, the Member concerned should consult the Supervisor for advice.

3.7 The Association will consider taking appropriate action against all members who do not abide by this declaration of interest policy.

4. As some lay members may not receive circulars from the Associat ion, Commissioners and Group Scout Leaders are responsible to explain this policy to them.

5. This circular will be distributed to members of the Executive Committee of the Association and other committees at the 1st meeting every year. Members shall signif y that they agree to and accept this Policy, AND commit to complying with all the clauses therein as well as declaring interest as necessary with specific details on conflict of interest.

6. Should you have any queries, please contact Scout Executive (Admini stration) at 2957 6334, or respective Scout Executives of your Units.

(YUNG Kin-man) for Chief Commissioner

香港童軍總會 Scout Association of Hong Kong

「申報利益政策」協議書

Agreement on “Policy on Declaration of Interest”

致： 委員會（ 年度）

To: Committee (Year )

請於簽署本協議書前細閱「申報利益政策」的內容。

Before signing this Agreement, please carefully read the document entitled “Policy on Declaration of Interest” .

聲 明 Declaration

本人 （姓名）同意及接受「申報利益政策」列出的所有條款，並承 諾會遵守此等條款，在有需要時申報利益及申述詳情。

I, _____________________________ (Name), hereby agree to and accept the “ Policy on Declaration of Interest”, and commit to complying with all the clauses therein as well as declaring interest as necessary with specific details on conflict of interest.

BOY

SCOUTS OF AMERICA

EMPLOYEE CONFLICT-OF-INTEREST POLICY

It is imperative that employees of the Boy Scouts of America conduct themselves with a degree of honesty and integrity which is beyond reproach or even suspicion.

While it is not possible to anticipate every situation and prescribe a precise rule for each, it is possible to set forth certain basic, general principles to be observed by employees at all times. The essence of this policy is that employees shall always deal with others doing, or seeking to do, business with the Boy Scouts of America, affiliates, subsidiaries, or any local counci l (collectively referred to as “ Boy Scouts of America”) in a manner that excludes all consideration of personal advantage. Accordingly, every employee of the National Council is subject to the following policy:

1. INTEREST IN ANY OTHER BUSINESS ORGANIZATION

Employees of the National Council or members of their immediate families shall not have any financial interest, direct or indirect, in any other business which in any degree conflicts with the employee's primary obligations to the Boy Scouts of America. In this regard, employees or members of their immediate families should not possess a significant financial interest in, or receive remuneration from, any business that does, or seeks to do, business with the Boy Scouts of America. In addition, employees should not conduct business on behalf of the Boy Scouts of America with members of their immediate family, or a business organization with which the employees or members of their immediate families have any association which could be construed as significant in terms of potential conflict of interest. Employees or members of their immediate family should not do business with other employees of the National Council on the basis of their mutual association with the Boy Scouts of America.

2. TRANSACTIONS BETWEEN BSA AND “DISQUALIFIED PERSONS”

No employee who is a “disqualified person” with respect to BSA under Section 4958 of the Internal Revenue Code may enter into any transaction with BSA, if such transaction would constitute an “excess benefits transaction” under the aforementioned Internal Revenue Code section.

3. GIFTS, FAVORS, ENTERTAINMENT, AND PAYMENTS TO EMPLOYEES

Employees shall not seek or accept any gifts, payments, fees, services, valuable privileges, vacations or pleasure trips, loans (other than conventional loans from lending institutions) or other favors from any person or business organization that does, or seeks to do, business with the Boy Scouts of America. No employee shall accept anything of value in exchange for referral of parties to any person or business organization that does, or seeks to do, business with the Boy Scouts of America. In the application of this policy:

a. Employees may accept common courtesies of nominal value usually associated with accepted business practices for themselves and members of their families.

b. An especially strict standard is expected wi th respect to gifts, services, or consideration of any kind from suppliers. Entertainment at the expense of suppliers beyond that contemplated by (a) above should not be accepted under any circumstances.

c. It is never permissible to accept a gift in cash or cash equivalent of any amount.

d. This policy does not preclude the acceptance of gifts that will benefit the Boy Scouts of America rather than an individual employee.

e. This policy does not preclude the acceptance of courtesies extended to employees of the Boy Scouts of America in their official capacities, such as gratis hotel rooms for business (but not personal use) in connection with meetings.

f. This policy will be communicated to persons and organizations doing, or seeking to do, business with the Boy Scouts of America.

Employee Conflict of Interest Policy

4. CONFIDENTIAL INFORMATION

Unless authorized by General Counsel , employees shall not disclose, directly or indirectly, confidential or proprietary information of the BSA or its employees, or use such information for personal gain. Such infor mation should be shared with other BSA employees only on a need-to-know basis. Individuals who have separated from BSA employment may not subsequently disclose, directly or indirectly, confidential or proprietary information acquired during BSA employment or use such information for personal gain.

5. GIFTS, FAVORS, ENTERTAINMENT, AND PAYMENTS BY THE BOY SCOUTS OF AMERICA

Gifts, favors, and entertainment may be given others at the expense of the Boy Scouts of America only if they meet all of the following cr iteria:

a. They are consistent with accepted business practices.

b. They are of sufficiently limited value, and in a form that will not be construed as improper.

c. They are not in contravention of applicable law and generally accepted ethical standards.

d. Public disclosure of the facts will not embarrass the Boy Scouts of America.

6. OBLIGATION TO DISCLOSE

Any employee who believes that his or her personal actions or interest, or the actions of others, may violate this policy must discuss the matter with BSA Legal Counsel . Additional interpretations of this policy and definitions of words and phrases used herein will be made upon request to the BSA Legal Counsel .

On annual basis, each employee shall sign a statement which affirms such person:

a. Has received a copy of the conflict of interest policy,

b. Has read and understands the policy

c. Has agreed to comply with the policy, and

d. Has reported all breaches of the conflict of interest policy.

If at any time during the year, the information in the annual statement changes materially, the employee shall disclose such changes and submit a revised annual disclosure form to the Controller.

7. SANCTIONS

Any employee whose actions or interests violate this policy is subject to immediate termination, if such is determined to be i n the best interests of the BSA.

8. DEFINITIONS

Financial interest A person has a financial interest if the person has, directly or indirectly, through business, investment, or family:

a. An ownership or investment interest in any entity with which the Boy Scouts of America has a transaction or arrangement,

b. A compensation arrangement with the Boy Scouts of America or with any entity or individual with which the Boy Scouts of America has a transaction or arrangement, or

c. A potential ownership or investment i nterest in, or compensation arrangement with, any entity or individual with which the Boy Scouts of America is negotiating a transaction or arrangement.

Compensation includes direct and indirect remuneration as well as gifts of favors that are not insubstantial.

Employee Conflict of Interest Policy

Page 3

A financial interest is not necessarily a conflict of inter est. A person who has a financial interest may have a conflict of interest only if the Audit Committee or Executive Board of the Boy Scouts of America decides that a conflict exists, in accordance with policy.

Significant financial interest A person has a significant financial interest if the person has, directly or indirectly, through business, investment, or family a financial interest that:

a. exceeds $10,000 in value or represents more than 5% ownership interest in any one enterprise or entity, when aggregated for the member and his or her family members for the disclosure period.

Direct financial interest A financial interest that is Owned directly by an individual or business, investment, or family (including those managed on a discretionary basis)

a. Under the control of an individual or business (including those managed on a discretionary basis).

b. Beneficially owned through an investment vehicle, estate, trust, or other intermediar y when the beneficiary controls the intermediary; or has the authority to supervise or participate in the intermediary’s investment decisions.

Indirect financial interest A financial interest beneficially owned through an investment vehicle, estate, trust, or other intermediary when the beneficiary neither controls the intermediary nor has the authority to supervise or participate in the intermediary’s investment decisions.

Beneficially owned A financial interest in which an individual or business is not the owner of record but has some right to some or all of the underlying benefits of ownership.

It is the responsibility of every employee of the Boy Scouts of America to be aware of and to observe these standards. Accordingly, you are asked to sign and return the accompanying Employee Statement relating to these standards. Employee Statements will be held in complete confidence. The Employee Statement will be re-executed on annual basis.

The Executive Board and/or Audit Committee of the Boy Scouts of America shall regularly and consistently monitor and enforce compliance with this policy and taking such other actions as are necessary for effective oversight.

© World Scout Bureau Inc.

October 2022

World Scout Bureau Asia-Pacifc Support Centre Makati City, Philippines

asia-pacifc@scout.org scout.org/asia-pacifc

Reproduction is authorised to National Scout Organizations and Associations which are members of the World Organization of the Scout Movement. Credit for the source must be given.