EDINBURGH INTERNATIONAL FILM FESTIVAL LIMITED (the “Charity”)
A Charity Registered in Scotland – SC053218
The EIFF encourages members of its staff to engage in a wide variety of external activities, which might include freelance work, consultancy or involvement in other companies.
The Charity recognises that involvement in such external activities carries many advantages to the Charity and the individuals concerned. However, on occasion, they may give rise to conflicts of interest, whether potential or actual, perceived or alleged.
As a charity must comply with the guidelines set out by OSCR (the Scottish Charity Regulator) in relation to standards of conduct all staff are therefore required to recognise and disclose activities that might give rise to conflicts of interest or the perception of conflicts and to ensure that such conflicts are seen to be properly managed or avoided.
If properly managed, activities can usually proceed as normal whilst at the same time upholding the person’s obligations to the Charity, meeting regulatory and other external requirements and protecting the integrity and reputation of the Charity. It is therefore the Charity’s policy to encourage and foster external activities whilst ensuring that when conflicts or perceived conflicts of interest arise they are identified and disclosed, and in relevant cases, appropriately managed. In every instance, the Charity reserves the right to make a determination in light of its best interest.
This document offers guidelines on the Charity’s Policy and provides some practical assistance to its staff on how they should manage potential or actual conflicts of interest. As an additional source of help, please refer to:
The Charity’s Anti Bribery Policy
Scope
This policy applies to all employees, workers, sole traders, external committee members, consultants, and volunteers. A reference in this policy to staff includes any person within the scope of the policy.
It is the responsibility of each individual to recognise situations in which he or she has a conflict of interest, or might reasonably be seen by others to have a conflict, to disclose that conflict to their line manager and through them to the Director for their area. They should then take such further steps as may be appropriate, as set out in more detail under the procedure below.
If an individual is uncertain about how this policy might affect his or her activities or has any questions about its application, they should contact their line manager.
Recognising Conflict of Interest
A conflict of interest arises where the commitments and obligations owed by an individual member of staff to the Charity or to other bodies, for example a funding body, are likely to be compromised, or may appear to be compromised, by:
- that person’s personal gain, or gain to immediate family (or a person with whom the person has a close personal relationship), whether financial or otherwise; or
- the commitments and obligations that person owes to another person or body.
There can be situations in which the appearance of conflict of interest is present even when no conflict actually exists. Thus it is important for all staff when evaluating a potential conflict of interest to consider how it might be perceived by others.
Conflicts of interest may be financial or non-financial or both. Further information about both types is set out below.
Financial Conflicts of Interest
A financial conflict of interest, for the purposes of this policy, is one where there is or appears to be opportunity for personal financial gain, financial gain to close relatives or close friends, or where it might be reasonable for another party to take the view that financial benefits might affect that person’s actions.
Financial interest means anything of monetary value, for example:
- payments for goods or services;
- resources and assets, including equipment, technical staff and facilities and/or
- intellectual property rights (e.g. patents, copyrights and royalties from such rights).
The level of financial interest is not the determining factor as to whether a conflict should be disclosed. What might be ‘not material’ or ‘not significant’ for one person might be very significant for another. Good practice in many situations will mean the disclosure of ‘any’ financial interest, however small.
A conflict will arise if the interest might provide, or be reasonably seen by others, to provide an incentive to the individual which affects their actions and where he or she has the opportunity to affect a Charity decision or other activity (because for example they the decision- maker).
Non-Financial Conflicts of Interest
Non-financial interests can also come into conflict, or be perceived to come into conflict, with a person’s obligations or commitments to the Charity. Such non-financial interest may include any benefit or advantage, including, but not limited to, direct or indirect enhancement of an individual’s career, education or gain to immediate family (or a person with whom the person has a close personal relationship). For examples of non-financial conflicts of interest see Appendix A.
Procedure
It is the duty of every member of staff accurately and promptly to disclose:
- a change in status of an existing actual, perceived, or potential conflict of interest and/or commitment
- a new actual, perceived, or potential conflict of interest and/or commitment.
Apparent or perceived conflicts of interest can be as damaging as actual conflicts of interest. Staff should consult a member of the Senior Management team in the first instance if they are uncertain about whether a situation or activity presents a conflict of interest. They shall evaluate the activity or situation and advise on the most appropriate course of action.
The general rule, is that disclosure should be made at the time the conflict first arises, or it is recognised that a conflict might be perceived, by email to their line manager and to a member of the Senior Management team. The line manager should then discuss this with the member of the Senior Management team and other members of Senior Management as appropriate.
Disclosure in all cases shall include the type of potential conflict (conflict of interest or commitment), the nature of the activity, a description of all parties involved, the potential financial interests and rewards, possible violations of legal requirements, and any other information which the employee feels necessary to evaluate the disclosure.
Many situations will require nothing more than a declaration and a brief written record of that declaration, which must be held in the CEO’s written records.
Some instances will however need to be dealt with by agreeing how the conflict can be actively managed to eliminate the conflict; safeguard against prejudice toward Charity activities, and provide continuing oversight. The approach adopted should be recorded in a formal plan and copies provided to the relevant parties. A copy of the final plan must sent to the CEO and held on the individual’s file.
One or more of the following strategies may be appropriate to manage the conflict of interest:
- not taking part in discussions of certain matters;
- not taking part in decisions in relation to certain matters;
- referring to others certain matters for decision;
- resolving not to act as a particular person’s line manager;
- publishing a notice of interest;
- standing aside from any involvement in a particular project; and/or
- declaring an interest to a particular sponsor or third party.
It is the responsibility of those affected to comply with the approach that has been agreed.
Board Meetings
This includes meetings of the Board of Trustees.
Any member of a meeting who has a clear and substantial interest in a matter under consideration should declare that interest at any meeting where the matter is to be discussed. At the discretion of the Chair, the member concerned should withdraw from the meeting during the relevant discussion or decision.
Failure to follow the procedure set out in this policy or failure to comply with any stipulated management plan for managing the disclosed conflict will be considered a serious matter and may lead to disciplinary action being taken against the individual.
REMEMBER: THE OVERRIDING PRINCIPLE IS THAT IF IN DOUBT, DISCLOSE.
Policy Last Amended: March 2024
