CANADIAN MULTICULTURAL MEDIATION SERVICE (CMMS)

CONFLICT OF INTEREST POLICY

1. Introduction

The Board of Directors of Canadian Multicultural Mediation Service is the highest decision making authority of the organization. Currently, CMMS has Nine (9) members on its Board of Directors comprising four (4) women and five (5) men.

At the organization’s general membership meeting held in December 2006, a conflict of interest policy developed by the Board of Directors was presented by the Board for discussion and approval by the general membership of CMMS. After a lengthy discussion, the conflict of interest policy was approved to take effect from January 1st, 2007 as follows:

Consistent with the Canadian Multicultural Mediation Service By-laws and the Ontario Corporations Act (Section 71) and Canada Corporations Act (Section 98), this policy governs the Organization’s guidelines and procedures in relation to conflict of interest. This policy enhances accountability and ensures transparency of the organization’s management and operations to its membership and broader stakeholders.

All members of CMMS are expected to use good judgement, act honestly and in good faith and must always consider the interest of the organization and not allow their personal interest or preferences to affect their conduct and decisions.

2. Application

In this policy, the term “members” applies to all staff and volunteers of the organization, including the Board of Directors.

3. Definition

Conflict of interest occurs when a member’s status within CMMS or a member’s close personal relationship, obligation or special interest interferes, or would be perceived by a reasonable person to interfere, with member’s ability to act in the best interest of the organization, including situations that result in a benefit or material gain to the member, a member’s close personal relationship or a member’s business associate. A conflict of interest also occurs when a member has knowledge of a private interest that is sufficient to influence the exercise of the member’s duties and responsibilities.

Benefit includes monetary gains, gains in-kind and intangible assets.

A benefit is received directly by a member if she/he receives the benefit herself/himself.

A member receives a benefit indirectly if it is received by someone with whom the member has a close personal relationship or by a corporation or other organization in which the member, or someone with whom the member has a close personal relationship, has an interest.

Close personal relationship includes, but not limited to, the member’s partner, parent, brother, sister, son, daughter, mother-in-law, father-in-law, son-in-law, daughter-in-law,
Sister-in-law, grandparent or grandchild, extended family or persons acting in such a manner. Any relationship that may potentially bias an individual’s judgement may present a conflict of interest.

Relationship includes sexual involvement among members and business associations.

Partner includes someone of the same or opposite sex with whom the member has a relationship.

An actual conflict of interest exists when a member of CMMS benefit, directly or indirectly, from a decision or action by CMMS.

A potential conflict of interest exists when a member of CMMS is involved in a transaction from which, depending on the organization’s decision, they may benefit either or indirectly.

A perceived conflict of interest exist when a reasonable and objective observer viewing a transaction would conclude that a member of CMMS participating in the transaction will or may benefit, either directly or indirectly, from the transaction.

Areas of conflict of interest include, but are not limited to:

Material Gain: A member has a conflict of interest when she or he participates in discussion or decision-making or acts in a manner which may, directly or indirectly, benefit the member, someone with whom the member has a close personal relationship or a private interest of the member, regardless of the size of the benefit

Outside Employment: A member has a conflict of interest when her/his outside employment or association causes her/him, or would reasonably be perceived to cause her/him, not to act in the best interest of the organization.

Other Organizations: Members of CMMS are expected to declare if they are members of the Board of Director, or are asked to become a member of the Board of the Directors, of any other local organization whose mission or mandate is in conflict with the mission or goals of CMMS.

Undue influence: A member has a conflict of interest if that member uses their status within the organization to exert undue influence on another member of the organization in the execution of that member’s duties or to exert undue influence on any decision-making process of the organization.

Where contracts with funders stipulate conflict of interest terms, the more stringent of the organization’s policy or contractual terms shall apply.

4. Orientation

The Board shall ensure that all members are provided with training, education orientation with respect to the organization’s conflict of interest policy.

5. Disclosure

Upon the adoption of this policy by the Board of Directors, all members shall complete and sign a conflict of Interest Declaration Form.

All new members shall complete and sign a Conflict of Interest Declaration Form upon their election or appointment to the Board, upon hiring as a staff member or upon becoming a volunteer.

Further, each member must reread the most current version of this policy at least annually. For staff members, this should occur at the time of their annual review. For Board members, this should occur at the first Board meeting following the Annual general Meeting as part of annual education, orientation and training. For volunteers, this should occur at a convenient time to be determined by the staff responsible for the direct supervision of the volunteers.

If a member, after having signed a Declaration Form, believes that she/he is or may be in conflict of interest, she/he inform, in writing the nature of the conflict and all material facts to the appropriate person as soon as she/he becomes aware of the situation:

- (a) In the case of the Chairman of the Board, inform the Executive Committee;

- (b) In the case of another Board member or the Executive Director, inform the Chairman of the Board; further, all Board meetings agendas will provide a standing item titled “Conflict of Interest” and will provide Board members with an opportunity to disclose a conflict of interest position related to any of the meetings’ business items.

- (c) in the case of a staff member or volunteer, inform the Executive Director.

- (d) the Executive Director shall report such conflict of interest information, as well as any actions taken, to the Executive Committee.

- (e) Where the staff or Board volunteer is not present at the organization’s meeting and his/her actions may potentially violate this policy, he/she shall disclose in writing to the Chairman of the Board, the nature and extent of such interest so that a determination can be made as to where a conflict of interest does exist.

6. Resolution

An interested person may make a presentation to the appropriate person, investigating group or to the organization’s Board. If, through an investigation, a member determines, or if it is determined, that she/he is in a conflict of interest, he/she shall remove herself/himself from the decision-making meeting and process or other situations giving rise to the conflict of interest. Furthermore, she/he shall not attempt in any way whether before, during or after the meeting to influence the outcome of the meeting and process.

Any action taken to resolve a conflict of interest shall be recorded, in writing, on the Conflict of Interest Declaration Form. All actions taken to resolve conflict of interest shall be reported to the Executive Committee and documented in Executive Committee minutes.

Where a member in a conflict of interest does not take the appropriate action, the Executive Director and any two members of the Executive Committee shall attempt to mediate a resolution of the situation. If a resolution of the situation is not possible, the situation shall be brought to the Board for resolution. If the Board determines that the member has in fact failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action. As the accountable body of the organization, the Board of Directors may seek external advice, where appropriate. Any discussions undertaken by the Board of Directors regarding conflict of interest situations shall be recorded in the Board minutes.

If, through an assessment, a member determines, or it is determined, that she/he is in a conflict of interest in a way that it could reasonably be seen as affecting her/his independence or judgement covering her/his entire job function or role, then that member shall resign or be terminated from her/his position.

7. Confidentiality

All members of the organization shall exercise care not to disclose confidential information acquired in connection with their status at the organization or information which might be adverse to the interests of the organization. Further, a member shall not disclose or use information related to the operations of the organization for the personal profit of themselves, a family member, associate or friend. All members are required to sign and submit to the organization a Confidentiality Agreement that is attached to this policy along with a Conflict of Interest Declaration Form

8. Records of Proceedings

The minutes of the Board and Executive Committee related to conflict of interest situations contain:

- 1) The names of the persons who disclose or otherwise were found to have a conflict of interest in connection with actual, possible or perceived conflict of interest, the nature of the conflict, any action taken to determine whether a conflict of interest was present, and the Board or Committee’s decision as to whether a conflict of interest in fact existed.

- 2) The names of the persons who were present for discussions and votes relating to the transaction or arrangement, and a record of any votes taken in connection with the conflict of interest.

Further, all conflict of interest forms will be signed and returned to the organization. All staff and volunteer forms will be kept by the organization’s Executive Director except for the Board of Directors’ forms, which will be maintained by the Organization’s Secretary. Where a member discloses a conflict of interest, this will be noted on the member’s individual conflict of interest form.

9. Specific Prohibitions

The specific prohibitions listed below shall be followed in all cases:

• Nominations to the Board will not be sought or accepted from any person who, through an investigation, it is determined that she/he could e perceived to be in a conflict of interest.
  
• Job applications will not be accepted from any person who, through an assessment, it is determined that she/he cold be perceived to be in a conflict of interest

• No staff member may be elected or appointed to the Board of Directors. Former staff members must not be employed by the organization for at least 12 months before being elected or appointed to the Board.
  
• Board members are not eligible to apply for staff positions until twelve months after ceasing to be a Board member.

Staff:

In addition to the above, in their role as staff, employees of CMMS will:

• Discourage receiving personal gifts/donations (both monetary and non-monetary);
  
• Refrain from public use of CMMS’s name for endorsements, including products or vendors except where approved by a Board motion.
  
• Inform his/her supervisor if he/she receives a gift/donation, and that the accepting of the gif/donation will be based on the supervisor’s appraisal of the circumstances surrounding the gift/donation.
  
• All monetary gifts or negotiable items that are accepted shall be deemed to be donations to the organization.
  

Relationship with Membership

• All staff, volunteers and Board members of CMMS will undertake activities and manage their relationships with member agency stakeholders according to the principles, guidelines and procedures outlined in the Organization’s membership policy.

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