Conflict of Interest Policy
Note: This policy was recommended by the Personnel Committee
and adopted on June 16, 2006 by the Legal Aid of North Carolina Board of Directors.
Legal Aid of North Carolina (LANC) is a statewide, nonprofit law firm
that provides free legal services in civil matters to low-income people
in order to ensure equal access to justice and to remove legal barriers
to economic opportunity. LANC recognizes that it can best
accomplish its mission when it represents the diverse interests,
cultures, occupations and expertise of the community. Thus, LANC
recognizes that persons serving on the Board of Directors and others
representing or affiliated with the LANC will from time to time face
possible conflicts of interest or situations in which the appearance
of conflict of interest could be detrimental to the LANC and the communities
it serves. LANC expects that these persons will perform their
duties conscientiously, honestly, and in accordance with the best interests
of the organization. This policy applies to every person holding
a position of responsibility and trust on behalf of LANC, including
but not limited to persons serving on the LANC Board of Directors,
corporate officers and/or Local Advisory Councils as well as persons
who are volunteers, contractors and/or employees of LANC (hereinafter
“Members”).
A. Conflict of Interest
This policy defines “Conflict of Interest" ("Conflict") as an actual,
apparent or perceived interest by any Member in an action that results
in, or has the appearance of resulting in, personal, organizational,
or professional gain. A conflict of interest occurs when said Member
has a direct or fiduciary interest in another relationship. Also, a
conflict exists if a Member’s position or authority may be used to influence
or make decisions that lead to any form of financial or personal gain
for that Member or for his/her family or friends.
B. Expected Conduct of Members
Members must represent unconflicted loyalty to the interest of LANC.
This accountability supersedes any conflicting loyalty such as that
to advocacy or interest groups, business interests, personal interests,
or paid or volunteer service to other organizations. It also supersedes
the personal interest of any Member acting as a consumer or client of
LANC’s services.
No Member shall derive any personal profit or gain, directly or indirectly,
by reason of his or her service to the LANC.
Board Directors must not use their positions to obtain employment in
LANC for themselves, their family or close associates. Should
a Board Director desire employment, he or she must first resign.
Board Directors may not attempt to exercise individual authority over
the policies and operations of LANC except through their roles on the
Board or its committees.
LANC employees shall not use their official affiliation with LANC to
secure preferential treatment regarding application for or reception
of agency services. LANC employees shall not use confidential
information regarding clients or other LANC staff for their personal
gain or benefit. In no event shall LANC employees or their families
directly or indirectly benefit from the program's disbursing of funds,
except as staff or as recipients of program services.
C. Disclosure of Conflicts of Interest
Full disclosure shall be made by the interested parties to the
full Board of Directors or appropriate supervisor in all conflicts
of interest, whether actual, apparent or perceived, including but
not limited to the following:
- 1. A Board Director is related to another trustee or staff member.
- 2. A Board Director is also a LANC employee. According to
the bylaws, the President/Executive Director, who is a LANC employee,
serves on the Board of Directors. He/she shall not vote on
matters related to his or her own finances, employment, or other
topics where a conflict of interest or the appearance of a conflict
of interest is present.
- 3. A staff person in a supervisory capacity is related to another LANC employee whom he/she supervises.
- 4. Board Director or LANC employee receives payment from LANC for
any subcontract, goods, or services other than as part of this/her
regular job responsibilities or as reimbursement for reasonable
expenses incurred as provided in the bylaws and board policy.
- 5. Members serve on the governing body of a contributor to LANC.
- 6. Members may have personal, financial, professional, or political
gain at the expense of the LANC.
When the Board, committee, or staff is to decide an issue about which
a Member has an unavoidable conflict of interest, that Member shall
physically absent herself or himself without comment from not only the
vote, but also from the deliberation, unless directly requested by the
Chairman of the Board or relevant committee to provide factual information
or answer factual questions that may assist the Board or Committee in
making a wise decision. In no case shall that Member vote on such matter
or attempt to exert personal influence in connection therewith. Disclosure
and abstention shall be recorded in the minutes of the meeting(s) at
which the issue is discussed and decided.
Regardless of the circumstances, if Members sense that a course of action
they have pursued, or are presently pursuing, or are contemplating pursuing
may involve them in a conflict of interest with LANC, they should immediately
communicate all the facts to the Chair of the Board of Directors or
an appropriate supervisor. In any situation not specifically covered
by the previous sections of this policy, Members shall consider carefully
any potential or apparent conflict of their personal interests with
the interests of LANC and refrain from any action which might be perceived
as an actual or apparent conflict of interest.
D. Duties of the Board Chairman and the Executive Director
The Chairman of the Board shall be responsible for the application and
interpretation of this policy as it relates to Board Directors, its
committees and corporate officers as well as persons serving on Local
Advisory Councils. The Executive Director shall be responsible for the
application and interpretation of this policy as it relates to LANC’s
employees, volunteers, contractors or other Members.
A copy of this policy shall be given to all Board Directors, LANC corporate
officers, employees, volunteers and contractors. Each of them shall
sign and date the policy at the beginning of his or her term of service
or employment and each year thereafter. Failure to sign does not nullify
the policy.
LAST UPDATED: June 16, 2006
Disclaimer
The materials contained on this website are for information and educational
purposes only and do not constitute legal advice. Please contact your
Legal Aid of North Carolina office or a private attorney if you need to speak to
an attorney regarding your particular situation. See our complete
disclaimer.
Mission Statement
Legal Aid of North Carolina is a statewide, nonprofit law firm that
provides free legal services in civil matters to low-income people in
order to ensure equal access to justice and to remove legal barriers
to economic opportunity.