CHALLENGES WITH NOVEL CONFLICTS OF INTEREST
The public expects companies, especially those involved in healthcare, to conduct business ethically and for the general benefit of the population – a form of social contract to operate. To maintain the public’s trust, companies must ensure that decisions are not influenced by undue personal interests. An undeclared conflict of interest (COI) can damage both personal reputation and that of any affiliated companies. While directors and officers may have fiduciary duties, all personnel have a duty to act in the best interests of the company and to avoid even the appearance of a conflict.
Stakeholders such as governments, academia and industry may have different views about critical conflicts that can impact objectivity. Those with mature compliance policies have defined procedures to handle situations that pose conflicts. Such policies may cover financial and non-financial transactions, encompass actual and potential conflicts, and could extend to perceived conflicts which may never come to fruition. Policies consider individuals and their family members or acquaintances and methods of disclosing details to the appropriate parties to mitigate risk. Policies should be designed to preserve an individual’s objectivity and ensure that their personal interest does not appear to influence their decision making.
Awareness and mitigation of COIs is key to demonstrating impartiality and avoiding bias. While policies are often directed to company associates who are bound by employment or other agreements, the principles can be applied to a wide array of situations, such as when an outside consultant, agent or delegate has a conflict that poses novel risk to the company.
Jul-Sep 2024 Issue
Novartis