Model standards: Conflicts of interest
The public service must identify and manage conflicts of interest well. That is a non-negotiable bottom line. It is what gives the public confidence in our decision-making, including the choices we make around spending taxpayers’ money. My experience is that public servants want to do the right thing. Organisations have an obligation to make that as easy as possible for them. That starts with having broad conversations about interests and working together to identify any conflicts that may arise.
New Zealand is held in high regard and trusted for the standards of honesty, openness, transparency, and integrity in its Public Service 1. But this trust depends upon our ability to be impartial in our decision making, and to exercise a high standard of judgement in relation to conflicts of interest.
While it is an individual public servant’s responsibility to raise interests for discussion, it is a shared responsibility between the individual and their organisation to assess the interests and identify and manage any actual, perceived, or potential conflicts. The records of these discussions keep all parties safe.
In a small country like New Zealand, conflicts of interest in our working lives are natural and unavoidable. Having interests outside of work is a normal part of life and even if there is a conflict of interest, most conflicts can be managed. But organisations need clear and accessible policies and processes to deal with conflicts of interest and staff need to be alert to possible conflicts of interest and to promptly notify their manager if they think one could arise.
These model standards outline the Public Service Commissioner’s minimum expectations for organisations in the Public Service to support the identification, assessment, and ongoing management and monitoring of conflicts of interest. As well as staff conflicts, particular attention is drawn to public service procurement, where the interests of contractors and subcontractors need to be actively considered as well.
All Public Service organisations should ensure that these standards are integrated into policies and processes for managing conflicts of interest within their human resource, employment relations, and operational management systems.
The Office of the Auditor-General’s Managing conflicts of interest: A guide for the public sector contains useful information about different types of conflicts and examples. These model standards are consistent with and should be read alongside that guide and other relevant rules and standards including the Crown Entities Act 2004.
Ngā kōnae e hāngai ana Related files
Te Kawa Mataaho Public Service Commission
One-page guide to conflicts of interest conversations and explanatory notes
Conflict of Interest Management Plan Examples
Model standards for speaking up in the Public Sector
Board Appointment and Induction Guidelines
Office of the Auditor General
Managing conflicts of interest: A guide for the public sector — Office of the Auditor-General
Managing conflicts of interest in procurement OAG — Office of the Auditor-General
New Zealand Legislation
Sections 31 and 62, Crown Entities Act 2004 — New Zealand Legislation
1 For the purposes of these model standards Public Service refers to the organisations these model standards have been issued to as set out in section 19(1) of the Public Service Act 2020, excluding school boards and Crown entity subsidiaries.