Written Assignment: Conflict of Interest Laws

Master of Business Administration, University of the People

Instructor: Professor Brian Balduzzi

BUS 5115: Business Law, Ethics and Social Responsibility

November 18, 2020

Conflict of Interest (COI) Law

“29. (1) For the purposes of this Act, a conflict of interest is deemed to arise if a person in public life or

any person exercising a public function were to make or participate in the making of a decision in the

execution of his office and at the same time knows or ought reasonably to have known, that in the making

of the decision, there is an opportunity either directly or indirectly to further his private interests or that of

a member of his family or of any other person. (2) Where there is a possible or perceived conflict of

interest, a person to whom this Part applies, shall disclose his interest in accordance with prescribed

procedures and disqualify himself from any decision-making process.” (Integrity in Public Life Act,

2010).

Description

A conflict of interest is considered to exist for the purposes of this Act, if a person in public life

or any person performing a public function is to make or engage in a decision in the execution of

his office and at the same time knows or should reasonably have known that in the decision-

making process, either directly or indirectly, there is an opportunity to advance his or her private

interests or those of a member of his or her family or family of any other person.

Over more than four decades of growing partnerships with industry in medical, education,

science and practice, existing conflict of interest policies and practices have grown.

The growth has been followed by intensifying debates about how to assess and manage the risks

and the potential benefits of these relationships (Institute of Medicine, 2009).

” Since 1995, the U.S. Public Health Service (PHS) has required most research grantees to

establish policies and procedures to ensure that the design, conduct, or reporting of research

funded by PHS grants not be “biased by any conflicting financial interest of an Investigator” (42
CFR 50.601). The regulations allow grantees considerable discretion in formulating policies and

procedures. To provide more specific and comprehensive guidance to academic institutions on

conflict of interest policies” (Institute of Medicine, 2009).

Main Features of this policy

 The Federation of American Societies for Experimental Biology (FASEB) created a

conflict of interest tool kit that offers extensive online resources and guidance for

academic institutions, researchers, academic and professional societies, journal editors,

and industry

 In 2008, the trade associations representing major pharmaceutical and medical device

companies revised their codes on company interactions with health care professionals

 A number of academic medical centers, professional societies, medical journals, and

other institutions have revised their policies in recent years (Institute of Medicine, 2009)

The Congressional Budget Office regarding conflict of interest and Political Activities,

highlighted concerns mostly occur with personal interests that can impede independent and

unbiased judgment or that are otherwise inconsistent with the conscientious performance of the

duties of the job of an employee.

Implementation of basic policies can improve employee engagement and loyalty to their

employers through:

 Implementation of Minimum wage salaries

 Workplace Safety guidelines

 Health Coverage
  Social Security

 Unemployment Benefits

References:

Integrity in Public Life Act. 2010. (Ministry of Legal Affairs). Chapter 22;01 (T&T).

Institute of Medicine. (2009) Committee on Conflict of Interest in Medical Research, Education,

and Practice; Lo B, Field MJ, Editors.Washington (DC): National Academies Press (US).