Conflict of Interest Policy Template for United States

A Conflict of Interest Policy is a set of rules that helps organizations manage situations where personal interests might clash with professional duties. In Philippine corporations, these policies protect stakeholders by requiring employees and officers to disclose any business dealings, investments, or relationships that could affect their judgment or loyalty to the company.

Following SEC Memorandum Circular No. 19, Filipino companies use these policies to prevent self-dealing, insider trading, and unfair competition. The policy typically outlines specific reporting requirements, restrictions on outside employment, and clear procedures for handling potential conflicts - from board memberships to family business connections. It serves as a practical guide for maintaining transparency and ethical decision-making.

Your organization needs a Conflict of Interest Policy when expanding operations, onboarding key personnel, or setting up governance structures. It's especially crucial for Philippine companies preparing for SEC compliance, launching new ventures, or entering partnerships where personal and business interests might overlap.

The policy becomes vital during board transitions, major procurement decisions, or when employees take on external roles. Filipino corporations use it to prevent legal issues before they arise - particularly in family-owned businesses where relatives work together, during merger discussions, or when executives serve on multiple boards. Having clear rules in place protects everyone when questions of loyalty or competing interests surface.

• Basic Policy: Core rules covering disclosure requirements, outside employment restrictions, and gift acceptance limits - ideal for small to medium Filipino businesses
• Corporate Governance Policy: Expanded version with detailed board member obligations, related-party transaction procedures, and SEC compliance measures
• Family Business Policy: Specialized rules addressing nepotism, succession planning, and relative employment - common in Philippine family corporations
• Public Sector Policy: Strict guidelines aligned with government anti-graft regulations and public service ethics requirements
• NGO/Non-Profit Policy: Focus on donor relationships, volunteer management, and charitable program integrity

• Board of Directors: Approves and oversees the Conflict of Interest Policy, ensuring it aligns with SEC requirements and corporate governance standards
• Corporate Officers: Must disclose potential conflicts and follow compliance procedures in their executive roles
• Compliance Officers: Monitor adherence, maintain disclosure records, and update policies as regulations change
• HR Managers: Implement the policy during hiring, handle employee disclosures, and conduct related training
• Employees: Required to understand, sign, and follow policy guidelines, reporting any potential conflicts promptly
• Legal Counsel: Drafts and reviews policy language, ensures alignment with Philippine laws and regulations

• Company Assessment: Review your organization's structure, industry-specific risks, and current business relationships
• Regulatory Review: Gather relevant SEC guidelines, industry regulations, and Philippine corporate governance codes
• Stakeholder Input: Collect feedback from department heads about common conflict scenarios they encounter
• Disclosure Forms: Design clear reporting templates for employees to declare potential conflicts
• Enforcement Plan: Outline specific consequences and remedial actions for policy violations
• Training Strategy: Develop materials to explain the policy in simple terms with relevant examples
• Review Process: Set up regular evaluation schedules to keep the policy current with business changes

• Purpose Statement: Clear objectives and scope of the policy aligned with SEC guidelines
• Definitions Section: Detailed explanations of what constitutes conflicts, related parties, and material interests
• Disclosure Requirements: Specific procedures for declaring potential conflicts and reporting timelines
• Prohibited Activities: List of restricted actions and transactions under Philippine anti-graft laws
• Enforcement Mechanisms: Consequences for violations and disciplinary procedures
• Review Process: Procedures for evaluating and addressing disclosed conflicts
• Compliance Declaration: Acknowledgment and signature section for affected parties
• Amendment Provisions: Process for updating the policy as regulations change

A Conflict of Interest Policy differs significantly from a Corporate Ethics Policy in several key ways, though both support ethical business practices in Philippine organizations. While a Conflict of Interest Policy specifically addresses situations where personal interests might compromise professional duties, a Corporate Ethics Policy covers broader ethical standards and behaviors.

• Scope and Focus: Conflict of Interest Policies target specific situations and relationships that could create divided loyalties, while Corporate Ethics Policies set overall moral guidelines for business conduct
• Reporting Requirements: Conflict policies mandate specific disclosures of potential conflicts, whereas ethics policies outline general reporting procedures for various misconduct
• Implementation Level: Conflict policies typically require individual sign-offs and regular updates from affected parties, while ethics policies often work as company-wide standards
• Enforcement Mechanisms: Conflict policies include specific remedial actions for identified conflicts, while ethics policies generally outline broader disciplinary frameworks