I recently presented a workshop for an association where we talked about Conflicts of Interest. Conflicts of interest in sporting clubs can be tricky to navigate but are crucial to maintain transparency, fairness, and trust. A conflict of interest arises when a person’s interests clash with the responsibility to act in the best interests of the club. This can be actual, potential, or perceived and may involve personal, financial, or professional interests.
I have seen and heard of many conflicts of interest, and in regional areas they can become more prevalent because the close family connections that exist in sport. Here are three examples:
A parent who is on a team selection committee where their child is trying out is deemed a ‘Personal’ (relationships or affiliations that might affect objectivity) conflict of interest. I have seen parents selecting their own kids which upset other parents whose children missed out. I have also seen this handled well where the coach was a parent and stepped back from the selection process because their child was trying out. This was documented and communicated to families.
The club president was the sole supplier of sporting equipment to the club. His business was financed 90% by the club. No other suppliers were ever sourced -he had the monopoly. The ‘Financial’ (financial interests that could influence professional decisions and undermine impartiality) conflict of interest could have been avoided but because he was the president no one felt they could say anything.
The President of the club was also the only paid coach. This ‘Professional’ (employment or professional connections that might influence club decisions) conflict of interest could have been avoided completely, or the president/coach could have abstained from any voting regarding this matter.
Conflicts of Interest can occur at club level because of:
- a lack of understanding of what is deemed a Conflict of Interest or what to do about it;
- the reluctancy for people to speak up which could be due to fear of retribution if the person in question is the president or holds an influential position within the club;
- the person with the Conflict of Interest does so much for the club and if they were to leave, it would put additional pressure on the remaining volunteers, so, often people don’t want to say anything.
I have also seen these people hold all the corporate knowledge and as long as they do, they hold the club to ransom. They ultimately make themselves bigger than the club.
Avoiding Conflicts of Interest is best to uphold the integrity of the club. It ensures decisions are made based on the club’s best interests, not personal gains. However, in reality this might not be possible, so they need to be managed.
This five-step process for managing Conflicts of Interest can assist clubs:
1. Conflict of Interest Policy
A Conflict of Interest Policy protects the club and its members. It fosters transparency and fairness, prevents ‘shady dealings’ and builds trust. It also takes the personal out, so people don’t feel they are being attacked. The Policy is ensuring that any concerns raised are seen as opportunities for clarification rather than personal judgments.
As a starting point, have the conversation that it is best practice that sporting clubs have a Conflict of Interest Policy, disclose, and manage Conflicts of Interest. A good reference is the Australian Sports Commission’s Sport Governance Principles which states the need to be aware of, and manage Conflicts of Interest in Principle 1, 4, & 6. They also have a Conflict of Interest Policy template which can be downloaded. Another tip is to ensure that at the beginning of each Board / Committee meeting any Conflicts of Interest are declared.
2. Identify & Disclose Conflicts of Interest
Your Conflict of Interest Policy should define what is a Conflict of Interest. Have the conversation with Board Members on actual, potential or perceived conflicts they may have. Consider not only board members but any members on sub-committees or other positions that may have decision making powers or could influence decisions. Here are some useful questions when deciding if there is a Conflict of Interest:
Could this cast doubt on my objectivity?
What is the relationship of this conflict of interest to the club?
What role do I play in the identified conflict of interest?
Would my, other associated people, or a business reputation be damaged because of a proposed action or decision?
Would I, or other associated person gain financially in a direct or indirect way?
Have I received a gift, or will I benefit as a result of decision I was involved with in making? [Note if a decision benefits you as well as all other members of the club it may not be classified as a Conflict of Interest].
Would I be happy if this were on the front page of the newspaper?
3. Assess & Manage Conflicts of Interest
Assess the conflict and the impact on the person, stakeholders, and the club. It is important to create an environment where other people can ask questions about the identified conflict to find out more information in a safe space, without the individual feeling they are being attacked. The focus should be on ‘what is in the best interests of the club?’
There are several options to consider when deciding how to manage the Conflict of Interest:
Avoid: This involves steering clear of situations that could create a conflict. Individuals are encouraged to refrain from participating in decisions where they have a personal interest that could compromise their objectivity.
Manage: When avoidance is not possible, conflicts should be managed through transparency, disclosure, and established protocols. This could involve recusing oneself from certain decisions or discussions.
How will it be managed?
- Not to vote on the matter (this is a minimum);
- Not to participate in any debate; or
- Not to be present in the room during the debate and the voting.
It is best practice that this is documented in the minutes when decisions are discussed / voted on.
Mitigate: Implementing measures to lessen the impact of a conflict of interest, such as setting clear boundaries around roles and responsibilities or creating policies that limit certain interactions or activities.
Monitor: Ongoing oversight is essential to ensure that potential conflicts are continually assessed and managed. This includes regular review of relationships and activities that might give rise to conflicts.
Educate: Providing training and resources to help club members understand what constitutes a conflict of interest and how to navigate potential situations effectively.
4. Conflict of Interest Register
A Conflict of Interest Register is a tool for maintaining a record of all Conflicts of Interest, the details, how it was managed, policies / procedures followed, and who was engaged in the resolution. The Register can also be used as a guide on how similar conflicts can be managed in the future to ensure consistency. Regularly updating and reviewing this Register helps the club manage conflicts effectively, ensuring that decisions are made fairly and without bias. Download a Conflict of Interest Register Template here.
5. Manage any Breaches.
Refer to your Conflict of Interest Policy which should outline how to manage breaches.
Conclusion
Effectively managing conflicts of interest is essential to upholding the values of fairness, transparency, and integrity within your sporting club. By implementing a clear Conflict of Interest Policy, regularly assessing potential conflicts, and fostering a culture of openness, your club can navigate these challenges with confidence. Remember, the goal is not just to avoid conflicts but to manage them in a way that strengthens the trust and unity within your club. By doing so, you protect the club’s reputation and ensure that decisions are always made in the best interests of the club.
Keystone Sporting Solutions 