Conflict of Interest Policy

Greater Wellington Regional Council (“GWRC”) policy to govern identification and
management of conflicts of interest for employees and job applicants.

Policy owner
Group Manager, People & Customer
Role administering this policy
Head of Human Resources
Date policy comes into effect
The first working day fol owing the date of approval by
the Chief Executive
Related policies and legislation
Human Rights Act 1993

Privacy Act 2020
Local Government Act 2002
Local Authorities (Members’ Interest) Act 1968
Code of Conduct
GWRC Collective Employment Agreement and
Individual Employment Agreements
GWRC Policy for employees wishing to make personal
submission to GWRC
Recruitment and selection policy
GWRC Procurement guidelines
Policy Review date
By 31 December 2024
Policy history

Chief Executive

Date:

31 May 2023

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1  Introduction
GWRC relies upon the professionalism and integrity of its employees to make decisions on
proper grounds, for legitimate reasons and without bias.
Employees may have a personal interest or obligation that may affect or conflict with their
professional job duties or responsibilities.
A conflict may mean that the employee’s objectivity or impartiality can be called into
question without anyone being at fault. Such conflicts are inevitable in a small country, and
with GWRC’s functions so broad and far reaching into our community. This is not necessarily
a problem if they are identified and managed properly.
Most often, what needs to be managed, and be seen to be managed, is the risk of adverse
public perception that could arise from overlapping interests. Poorly managed ‘perceived’
conflicts of interest can be just as damaging as poorly managed ‘actual’ conflicts of interest.
2  Purpose
This policy provides definitions and a process to identify and manage conflicts of interest
with employees and job applicants.
Generally, while employed as a staff member of GWRC, you have the same rights as a
member of the public; however it is important that in exercising these rights you act
consistently with these guidelines to manage any real or perceived risk of a conflict of
interest.
3  Definitions and key concepts
The current GWRC employment agreements notes that “any employee who:
(i)
engages in any activity that adversely affects, or may adversely affect, an Employee’s
ability to carry out responsibilities toward the Employer, or
(ii)
engages, or proposes to engage, in business involving the Employer and any
organisation in which the Employee or their immediate family has a pecuniary
interest
is considered to have a conflict of interest or a potential conflict of interest.”
A conflict of interest can be actual (it exists), potential (where the conflict is about to
happen or could happen) or perceived, where other people might reasonably think that a
person has been compromised by their interests. This can occur whenever a person’s duties
or responsibilities as an employee overlap with their other roles and responsibilities.

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A conflict of interest usually falls into one or more of these categories:
•  personal - an opportunity for an individual employee to gain advantage or benefit or
to make a statement about or doing something that conflicts with GWRC’s position
or policy.

Examples include protesting (including activity on social media) about an issue
associated with strongly held personal or political views e.g.1080, seeking preference
for a hunting ballot, interviewing a job applicant when that person is known to you
or working directly with someone whom you have a personal relationship;
  •  family - pressure for an individual employee to assist or provide an advantage or
benefit to family or friends. Examples include employees managing a tender or
vendor process who are offered gifts or inducements by the vendor (who is a
relative) that could be perceived as influencing their decision e.g. free food, travel or
accommodation. Another example is where an employee is involved in a GWRC
procurement process who owns shares or has another financial interest in a
company that is tendering for that business;
  •  community - an opportunity or pressure for an employee to provide an advantage or
benefit to a community or stakeholder group. Examples include seeking priority
access to councillor forums as a member of a charitable trust, club or association or
private company, or not remaining politically neutral on an issue that relates to the
employee’s role in GWRC. Other examples include processing a consent relating to a
community group you are engaged with, or pressure from a community group to
move a bus stop.
4  Risks
Employees should manage their interests to avoid a conflict of interest situation arising as
this could undermine trust and confidence in GWRC as well as the employee. It is not
enough that an employee is honest or ethical, they must be seen to be so. Despite careful
management, some actions just might look bad. The risk of negative public perception is
more significant when the person concerned is in a senior position and responsible for
providing advice to elected members and leading staff.
Pre-existing or inevitable conflicts, such as those that arise from connections or existing
interests, are slightly different from a conflict created by pursuing an opportunity while in a
position. An employee who wishes to pursue a private interest that might conflict with their
role needs to consider the risk of adverse public perception of their actions as this type of
conflict is likely to be perceived less favourably, e.g. a private financial interest.
5  Compliance
Employees will comply with the GWRC’s Code of Conduct and their employment agreement.
When a conflict of interest has been ignored, improperly acted on or influenced actions or
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decision-making, the conduct (not the conflict itself) can be seen as misconduct, abuse of
office or even corruption.
The Code of Conduct notes that employees will act in a politically neutral manner by
“ensuring individual comments do not compromise GWRC e.g. by stating or implying that
your personal view on an issue is the view of GWRC or putting yourself in a situation where
there is an actual or potential conflict of interest”, and “ensuring your participation in
political matters does not bring you into conflict or the appearance of conflict with your
duty to act in a politically neutral manner”.
6  Managing the conflict
Employees need to know what a conflict of interest is, comply with the management
process and encourage and support their colleagues to do the same.

The GWRC Employment Agreement and Code of Conduct note that employees wil  discuss
the situation and “gain the manager’s approval before commencing any activity, business
interest or employment that has the potential to conflict with GWRC activities”.

The GWRC Employment Agreement also notes that “While the conflict or potential conflict
continues, the Employee may be stood down on annual leave or leave without pay. A
conflict of interest, which is deliberate or pursued knowingly, is regarded as serious
misconduct and may result in summary dismissal.”

An employee should consider the effect of choosing to pursue a private or financial interest,
where that interest creates a conflict with their ability to perform their job. This requires
thinking through possible scenarios, including whether the conflict might affect other areas
of responsibility in the future. Their manager should also think through the implications and
agree any plan to manage those implications.
6.1  Process and decision factors
The process for identifying and managing conflicts of interest is:
i.  GWRC will provide information for employees on how to identify and manage conflicts
of interest. Human Resources will maintain a confidential register of all conflicts of
interest and remind employees of the need to declare or update conflicts at least
annually.

ii.  Job applicants will answer questions about any relevant conflict/s of interest on
GWRC’s vacancy application form. If they are appointed to the position they will
transfer information on any conflict noted on the application form to the interests
register using the online form.
iii.  The employee will declare or update the conflict of interest (actual, potential or
perceived) as soon as it arises or they become aware of it, by discussing it with their
manager and by recording it on the online form. If unsure it is safer for the employee
to disclose the interest in writing and to raise concerns as early as they become aware
of a potential or perceived interest or duty that may conflict with a GW interest. An
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link to page 5 interest may also be declared at a meeting or to the meeting chairperson and updated
in the conflict of interests register. In the rare case that an employee is aware of an
undisclosed interest of another employee, this should be discussed with Human
Resources.
iv.  On receipt of the online form, Human Resources will ensure that the manager of the
employee and the relevant HR partner are aware of the declaration.
v.  The employee’s manager (or other GWRC representatives such as a Group Manager,
Manager HR Advisory Services, Head of HR and the CE) will consider the seriousness of
the conflict and all available options to manage it. This includes any failure to disclose
a conflict and any false or misleading declaration.
They will balance an employee’s right to hold outside interests against GWRC’s
obligation to ensure its affairs are conducted with integrity and transparency. They
will also consider the ethical and legal dimensions of the interest.
In weighting up the seriousness, the fol owing factors may be considered
•
the seriousness of the connection between the interests1
•
the risk that GWRC’s capacity to make decisions lawfully and fairly may be
compromised; and
•
the risk that GWRC’s reputation may be damaged i.e. “Does the employee’s
interest create an incentive (or risk of disadvantage) for them to act in a
way that may not be in the best interests of GWRC?”.
Other factors to consider include:
•
do those involved have an undue advantage in any way?
•
how transparent were any processes involved?
•
what other options were considered, if any?
•
How far within the organisation does the conflict extend (i.e. within one
team, department, group, organisation wide?)
In deciding how to manage a conflict that could include the closeness of a relationship,
the interests of any relative living with the employee are treated as being effectively
the same as the interest of the employee.
Options to avoid or mitigate the effects of the conflict of interest include:
•
No further action
•
Requesting consent from affected parties for the employee’s continued
involvement
•
Restricting the employee’s involvement in an activity, access to information
or removing them from an area of their work that conflicts with the
interest

1 Seriousness includes the type or size of the interest, the nature or significance of the decision or activity
being carried out, the extent to which the interest could affect or be affected by GWRC’s decision or activity
and the nature and extent of the employee’s current or intended involvement in GWRC’s decision or activity.
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•
Recruiting another party to oversee part or all of the area of work that
conflicts with the interest
•
Requesting that the employee to relinquish the interest that is causing the
conflict
•
Redeployment or disciplinary action (which could include dismissal) may be
considered as a last resort. This option would not be considered a last
resort if the Code of Conduct had been breached.
vi.  The manager or GWRC representative (e.g. Group Manager) wil  decide on the best
course of action after discussing it with the employee. They may also seek advice from
their manager and/or Human Resources. They will also put the management plan into
action and make sure it is effective and update the interests register noting the factors
considered and action taken.
vii.  The employee will update or add any conflicts (actual, potential, perceived) into the
GWRC conflicts of interests register at least annually. Register themes wil  be
monitored by Human Resources and reported to ELT annual y.
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