Conflict of Interest Policy

It is in the interests of the Institute, its staff and affiliates and all other members of the Institute community to maintain the highest possible ethical practices and standards in order to maintain public trust and confidence in the Institute. In order to act ethically and with integrity, all those who undertake duties and responsibilities on behalf of the Institute must be able to identify, and appropriately manage, conflicts of interest.

The objectives of this policy are to:

• help staff and affiliates to identify, disclose and resolve potential, perceived or actual conflicts of interest between their individual personal interests and their duty or responsibilities to the Institute; and

• articulate the Institute's position on conflicts of interest to staff, affiliates, students, and other members of the Institute community.

This Policy applies to all staff, students and affiliates of the Institute.

This Policy does not apply to staff of controlled entities of the Institute as those organisation’s are expected to have their policies on this issue in place.

The Institute Code of Conduct refers to the general standards of conduct expected of Institute staff and affiliates. Institute staff and affiliates are expected to behave in good faith and avoid potential, perceived or actual conflicts between their private interests and the interests of the Institute.

Staff and affiliates carrying out Institute activities and functions have a responsibility to declare and manage conflicts of interest as they arise.

A conflict of interest arises or may arise in a situation where an independent observer might reasonably conclude that the professional actions of a person are or may be unduly influenced by the personal interests of that person.

Conflicts of interest can be either potential, perceived or actual.

Potential

A potential conflict of interest arises where a staff member or affiliate has an interest or obligation which has the capacity to develop into a conflict with the staff member’s or affiliate’s duties or responsibilities at the Institute.

Example

A staff member has a pre-existing personal relationship with another staff member of the Institute.

Perceived

A perceived conflict of interest exists where it could reasonably be perceived that a competing interest could improperly influence the decisions or activities of a staff member or affiliate (whether or not that is actually the case).

Example

A staff member acts as a consultant for a business which is sponsoring research undertaken by the staff member for the Institute.

Actual

An actual conflict of interest is a direct or real conflict between a staff member or affiliate’s duties and responsibilities to the Institute and a competing interest or obligation, whether personal or involving a third party.

Example

A staff member assesses a tender submitted by a business in which the staff member has a financial interest.

Disclosure of personal interests

Each person covered by this policy must disclose to Burnet all relevant Personal Interests. In the case of researchers, this includes all interests that are relevant to, or could appear to be relevant to proposed or ongoing research.

Personal Interests could be financial or non-financial. The following table provides a non-exhaustive list of examples of financial and non-financial personal interests:

Financial interests

• direct payments to the employee or researcher, such as salary, consultancy payments, speaking fees, panel memberships;
• indirect payments to the researcher, for example funding of travel, accommodation or other gifts or gratuities, professional development, hospitality
• payments to support research, such as funding from an industry or interest group
• company shares or options
• royalties
• directorships
• scholarships
• the actual or anticipated receipt of Gifts

Non-financial interests

• board membership (even if unpaid) or other affiliation with an organization;
• personal or social relationships and current and past professional relationships, where relevant;
• recent employment with, or role in, organisations with financial links or affiliations with industry groups that could stand to benefit from or be affected by the research.

Each person covered by this policy must also disclose to Burnet all relevant Personal Interests of a person who has a Close Personal Relationship with the person covered by this policy.

Section 7 of this Policy outlines the general procedures for disclosing Personal Interests.

Disclosure of conflict of interest

Each person covered by this policy must identify, disclose and manage their own conflicts of interest, whether potential, perceived or actual.

Identifying conflicts of interest

Appendix B of this Policy provides some examples of situations in which a conflict of interest may arise which may be used as a guide to identify a potential, perceived or actual conflict of interest. It is, however, not possible to define all potential situations where a conflict of interest may arise and therefore if a person covered by this policy is in any doubt as to whether a conflict of interest exists, they should seek advice from their line manager or the General Counsel.

Disclosing conflicts of interest

If a person covered by this policy identifies a potential, perceived or actual conflict of interest, that person must disclose the conflict of interest to Burnet.

Section 7 of this policy outlines the general procedures for disclosing conflicts of interest.

Managing conflicts of interest

Where a person covered by this policy has identified and disclosed a potential, perceived or actual conflict of interest, that person must:

• submit a Management Plan for that conflict of interest in accordance with section 7 of this policy; and
• ensure that the Management Plan they submit is complete, accurate, and updated as necessary.

The Management Plan must outline what measures, if any, the employee or affiliate intends on taking to manage the conflict of interest. These measures should be tailored to the specific circumstances. A non-exhaustive list of how conflicts of interest may be managed is set out in Appendix C.

Each person covered by this policy must disclose all relevant personal interests and all potential, perceived or actual conflicts of interest:

• upon commencement of employment with Burnet;
• as soon as reasonably practicable after any Change in Circumstance;
• as soon as reasonably practicable upon identifying or becoming aware of a potential, perceived or actual conflict of interest; and
• annually in accordance with Burnet’s procedural guidelines below.

Disclosures must be made via Dazychain.

The Disclosure of Interest form will be made available to all employees on commencement of their employment (or for affiliates, upon initial engagement with the Institute) and thereafter the Governance team will seek annual declarations from staff and affiliates.

All employees are required to assess whether a conflict of interest or the potential for a perceived conflict of interest exists in each individual situation as they arise. The Disclosure of Interest form will be made available on the Hub for use by all employees and affiliates to update their information or to make any additional disclosures should there be a change of circumstances or if the employee or affiliate identifies a potential, perceived or actual conflict of interest during the term of their engagement at Burnet.

If an employee or Affiliate is disclosing a conflict of Interest, that person must also prepare a Management Plan at the same time as submitting the Disclosure of Interest form.

Disclosure of Interest Forms and Management Plans must be reviewed and approved by the declarant’s line manager.

Once the employee or affiliate has submitted their Disclosure of Interest Form and Management Plan, the Form and Management Plan will be reviewed by the General Counsel.

The General Counsel, on consideration of all relevant information, may determine that:

• the potential for a conflict of interest of the staff member is remote and requires no further action other than to record that the Disclosure of Interests Form and/or Management Plan has been reviewed; or 
• the situation presents a potential, perceived or actual conflict of interest and that:
  • the measures outlined in the Management Plan are sufficient to manage the conflict of interest; or
  • the measures outlined in the Management Plan are not sufficient to manage the conflict of interest, in which case the General Counsel may require employees or affiliates to implement such additional measures as may be reasonably necessary to manage the conflict of interest, having regard to the possible actions set out in Appendix C of this policy.

If the staff member or affiliate disagrees, either about the presence of a conflict or about its appropriate management, the matter must be referred to the Chair of the Finance Audit and Risk Committee.

Once an assessment has been made by Chair of the Finance Audit and Risk Committee, the General Counsel will immediately notify the staff member of the outcome.

All Disclosure of Interests Forms and Management Plans will be filed and stored electronically record keeping purposes.

Staff members must report any Change in Circumstances immediately by completing a Disclosure of Interests Form.

All information regarding potential, perceived or actual conflicts of interest must only be disclosed to staff with delegated authority for dealing with and recording such matters. It is legitimate for those involved in resolving a matter to seek advice and/or assistance from people with relevant expertise.

A staff member must make full disclosure of any potential conflicts of interest when:

• entering into an agreement or arrangement with a foreign organisation or entity;
• engaging with community of international research experts or international working groups; and/or
• undertaking International travel for research, conferences or other international collaboration.

Potential conflicts of interest may arise when a staff member has an affiliation with, or financial involvement in, any foreign organisation or entity which:

• Has a direct interest in the subject matter or materials of a researcher at the Institute;
• Provides direct financial support to staff, such as sponsorship, for a research project;
• Provides indirect benefits such as materials or facilities for a project involving the researcher or the support of the researcher such as by provision of travel or accommodation expenses to attend conferences;
• Pays for consultancy work from Institute academics or experts in a specific area;
• Provides teachers and funding for foreign subjects or cultural outreach programs;
• Appoints Institute academics in honorary and adjunct roles at overseas institutions.

Disclosure of the potential conflict of interest must be made as soon as reasonably practicable to the General Counsel using the Disclosure of Interest form.

In circumstances where the nature of activities conducted are on behalf of a foreign principal, for the purpose of political or government influence, there may also be an obligation to register with the Commonwealth government under the Foreign Influence Transparency Scheme Act (2018). These registrable activities include:

• Parliamentary lobbying;
• Communications activity; and/or
• Certain disbursements of money on behalf a foreign principal.

In addition, there may be obligations to disclose the foreign principals involved in communications activities, in accordance with specifications set out in the Foreign Influence Transparency Scheme (Disclosure in Communications Activity) Rules 2018.

There may also be additional registration obligations for activities undertaken by former Cabinet Ministers and recent designated position holders.

If the individual is still unsure of their obligations, advice may be sought from the Legal Services unit before proceeding. Significant penalties may apply to individuals and/or entities who fail to register a relevant relationship.

All employees, students and affiliates are required to comply with this policy.

Any person covered by this policy may be directed to provide additional information regarding potential or actual conflicts of interest and failure to do so may be regarded as a breach of this policy.

Any alleged breaches of this Policy will be dealt with in accordance with the applicable Burnet policy document, enterprise agreement, industrial instrument or contract in accordance with the principles of natural justice.

Where a breach of this policy has been found to have occurred:

• Employees may have their employment with the Institute terminated.
• Affiliates may have action taken against them which may include termination or non- renewal of their contract or appointment with Burnet.

Burnet treats all complaints seriously and makes every effort to expeditiously investigate complaints in accordance with Burnet’s policy documents. Where there is no relevant process for dealing with an alleged breach of this Policy, Burnet will take steps to ensure the matter is properly considered and, if proven, that appropriate action is taken.

Staff members and affiliates are responsible for identifying and reporting any conflicts of interest they may become aware of and to take action to address situations in which a conflict of interest could arise, or perceivably arise, as soon as the conflict of interest is identified, by implementing the procedures in this policy.

The Institute is responsible for communicating the requirements of this policy to staff on a regular basis.

The Institute will communicate the contents of this policy to all staff, affiliates and to students and other clients of the Institute. This will be achieved by:

• publication of the policy and procedures on the Institute website;
• inclusion in Institute Staff Induction Program;
• inclusion in relevant staff training programs;
• circulation to all Deputy Director’s and Deputy Program Manager’s for distribution to all staff and affiliates; and
• circulation to relevant Institute stakeholder.

Affiliates

Includes people appointed in accordance with the Institute’s Appointment of Visiting and Honorary Policy; and people engaged by the Institute as agency staff, contractors, secondees, volunteers (including directors on the Institute’s Board or other individuals on the Institute’s committee’s) and work experience students.

Benefit

Anything which provides the staff member or affiliate with a direct or indirect personal gain or the potential or perception of personal gain or gain to a third party. Such a gain need not be financial; it could be a personal or a non-financial gain. It includes the provision of material or facilities, or the support of individuals through the provision of benefits (e.g. travel or payment for overtime, entertainment, accommodation expenses etc.), a financial benefit, opportunity, information or gift.

Business relationships

Refers to external contractual relationships, partnerships, private companies, professional networks, business names or any other commercial trading activity.

Change of circumstance

Means a change to the personal interests that a staff member or affiliate has, as declared previously by that staff member or affiliate.

Close personal relationship

Refers to married/de facto partners, sexual partners, near relatives or close friendships between staff, staff and students or staff and affiliates.

Conflict of interest

A conflict of interest exists where there is a divergence between the individual interests of a staff member or affiliate and their professional obligation to the Institute, such that an  independent observer might reasonably question whether the professional actions or decisions of that person are influenced by their own interests or are for their own benefit. It should be noted that enmity as well as friendship can give rise to perceptions of a conflict of interest and similarly that detriment to a third party can give rise to a conflict of interest just as much as benefit to a third party. A conflict of interest includes an actual, perceived or potential conflict of interest.

Financial benefit

A benefit in the form of remuneration, payment or gift received by a staff member outside their ordinary remuneration. Financial benefits may include but are not limited to investments, ownership or directorship of any companies, consultancies, provision of goods or services, receipt of royalties or other consideration.

Foreign principal

A foreign government or political organisation, an organisation controlled by a foreign government or political organisation, or an individual who is controlled by a foreign government or political organisation (for full definition see section 10 of the Foreign Influence Transparency Scheme Act (2018) (Cth)).

Near relatives

Refers to members of the immediate or extended family.

Gift

An item offered to or received by a staff member, or affiliate, in the context of their Institute role (not a formal gift to the Institute) or provided to an external party by a staff member, or affiliate, in the context of their Institute role, that:

• has financial value;
• has physical form; or
• can be considered a favour.

Recent designated position holders

Any person who, within the last 15 years, has been:

• a member of the Australian Parliament;
• a staffer in a Commonwealth parliamentarian’s office who has held the position of senior advisor or above;
• a Commonwealth agency head, deputy agency head or statutory office holder equivalent to an agency head or deputy agency head, or
• the holder of a Commonwealth office outside of Australia, such as an Ambassador or High Commissioner.

Registrable activities

Registrable activities are activities that must be declared under the Foreign Influence Transparency Scheme Act (2018) (Cth). These activities are conducted for the purpose of political or government influence, on behalf of a foreign principal and include:

• Lobbying the Commonwealth Government (including members of parliament, staffers, Departments, public servants, political parties and candidates), in the sense of seeking to influence a process, decision or outcome;
• Communication activity – of any kind where information or material (in any form) is disseminated for the purpose of influencing the views and opinions of people involved in political or government processes at the Commonwealth level (including voters during an election) on behalf of a foreign principal;
• Certain disbursements of money on behalf of a foreign principal for the purpose of influencing political views or opinions.

There are also additional registration obligations for activities undertaken by former Cabinet Ministers and recent designated position holders.

Reportable gifts

Refers to any gifts offered to the same recipient, with a single or cumulative annual value in excess of $100. This includes gifts as defined by this policy such as valuable items of property, whether of a personal nature or otherwise deemed reportable by the Australian Tax Office and normally incurring Fringe Benefits Tax.

Secondary employment

Secondary employment means any employment with an organisation other than the Institute and includes self-employment, independent contracting or consulting or employment by a family company.

Staff member

All people employed by the Institute including conjoint appointments, whether on continuing, permanent, fixed term, casual or cadet or traineeship basis.

Without limiting the possible circumstances in which a potential, perceived or actual conflict of interest may arise, the following are examples of situations which may give rise to a conflict of interest:

• Where a staff member has a personal interest (financial or non-financial) in an organisation with which Burnet does business and that staff member is or could be in a position to influence relevant business decisions with that organisation.
• Where the time a staff member invests or may need to invest in activities related to their personal interests is significant enough to diminish the time the staff member needs to invest in their role at Burnet.
• Where a staff member works for or consults with a competitor, supplier, or client of Burnet.
• Where a staff member is, or may be required to use Burnet’s facilities, resources, intellectual property or confidential information for their personal benefit or the benefit of someone with which the staff member has a close personal relationship.
• Accepting gifts, gratuities or hospitality which could, or be perceived to influence decision making.
• Where a staff member has a financial interest in a company and holds a position within the Institute in which they could influence, or could be perceived to influence the Institute to do something which favours that company;
• Where a staff member or an Affiliate holds a directorship in a company which is in a position to exert significant influence over the Institute;
• Where a Staff member is required to perform an audit on an operation in which they have a personal interest;
• Where a Staff member has an affiliation with, or financial involvement in, an organisation or entity which:
  • has a direct interest in the subject matter or materials of the researcher;
  • provides direct financial support, such as sponsorship or funding for a project involving the researcher; or
  • provides indirect benefits such as the provision of materials or facilities for a project involving the researcher or the support of the researcher such as by provision of travel or accommodation expenses to attend conferences.
• Where a staff member:
  • takes part in any selection, promotion, reclassification, performance appraisal or grievance process with another staff member with whom they have, or have had, a close personal relationship.
  • supervises or oversees the work of another staff member with whom they have, or have had, a close personal relationship.

Actions to resolve or eliminate conflicts of interest, and which may be included in a Management Plan, includes but is not limited to:

1. Taking no further action because there is no actual conflict of interest, and any potential or perceived conflict is minimal or can be managed by disclosure.

2. Ongoing monitoring and supervision by line manager, and identifying triggers to escalate a matter or review/revise a Management Plan.

3. Removing the staff member or affiliate from the project, responsibilities or duties to which the conflict relates.

4. Reorganising the duties of the staff member so as to remove the conflict of interest.

5. Implementing processes to ensure that staff members or affilates with the conflict of interest are absent and/or abstain from discussion or decision on specific matters.

6. Restricting access to relevant information that is sensitive or confidential or that may give rise to the conflict.

7. Putting in place additional processes to ensure the impartiality of the staff member in the performance of their duties and notifying the staff member of these processes.

8. Appointing extra persons to the project or task to minimise the influence of the staff member or Affiliate with the potential, perceived or actual conflict.

9. Seeking input from the Chair of the Finance Audit, Risk, and Investment Committee.