Formación profesional.

This is a very big, serious and sensitive issue in organizational ethics and ethics in management.

A conflict of interest happens when your personal interests influence (or appear to influence) your ability to act in the best interest of your organization. Organizational information and resources should not be used for personal gain. You should never use your contacts or position with the organization to advance your own private business or financial interests. Conflicts of interest would also include, having a financial interest or employment with another organization (apart from Agric) at the same time as being a civil servant; divulging or using-organizational confidential information for personal purposes; doing business with family members; using organizational time or equipment for personal gain or profit; promoting or selling outside products or services at work; serving on outside boards, committees, or elected office that might pose a conflict.

3.8.1 Areas of Conflict

The areas of conflict are:

 Employment: You should not be employed by, act as a consultant to, or have an independent business relationship with contractors, other governments, or citizen groups.

 Investment: You should not invest in any customer, supplier, or competitor.

 Competition: You should not have outside employment or business interests that provide goods or services similar to those of the organization.

As a general rule, neither you nor your immediate family should have a financial interest or

ownership in your organization's contractors, beneficiary groups, or competing interests with whom you deal in your job.

A conflict of interest is created when a family member works for a supplier, a beneficiary group, or competing interest; a family member has a "significant financial interest" in a contractor, beneficiary group, or competing interest; a family member receives gifts or benefits offered by a contractor, beneficiary, or competing interest. As an employee you are expected to give your full-time, best efforts to the organization.

Furthermore, as an employee you are expected to give your full-time, best efforts to the organization. You should not engage in outside business that diverts your time or attention away from your duties. If necessary, you should seek written clearance that your outside job or activity is within the bounds of your job performance and no conflict of interest exists.

You should not engage in outside business that diverts your time or attention away from your duties. If necessary, you should seek written clearance that your outside job or activity is within the bounds of your job performance and no conflict of interest exists. Always disclose a potential conflict situation to your superior and organizational legal department if you suspect a conflict of interest.

3.8.2 Family and Friends

For clarity your "family members" would include your:

 Spouse

 Parents

 Siblings

 Children

 In-laws

You should avoid engaging in any organizational business transactions with a relative by blood or marriage or with a firm where a relative is a principal, officer, or representative.

3.8.3 When to Disclose

When should you disclose your interest formally to your organization? You can determine this by asking the following questions:

 Does this business or investment opportunity have anything to do with my job responsibilities?

 Would the size or nature of this business or investment opportunity be of concern to my organization?

 If the answer to either of these is "yes," you should disclose it before taking action.

4.0 CONCLUSION

Whereas regulations refer to a set of guide, rules and regulations governing actions, supervision is the surveillance and enforcement to ensure that those set of guide, rules and regulations are implemented or followed.

Supervisory authorities carry out their functions through bank examinations. Such examination is done using both off-site and on-site supervision to carry out their supervisory functions.

The conditions necessary for effective banking supervision are s

ound and sustainable macroeconomic policy; effective market discipline;procedure for the efficient resolution of problems in banks; mechanism for providing an appropriate level of systemic protection for financial safety net and a well developed public infrastructure.

The institutionalization and management of ethics is an important task for today's organizations if they are to effectively counteract the increasingly frequent occurrences of blatantly unethical and often illegal behavior within large and often highly respected organizations. To that extent, the section discusses the important roles and responsibilities of stakeholders in the effective management of organizational ethics.

The ethical principles for the use of an organisation’s asset are also prescribed in the section.

Intellectual property includes the ideas discoveries, and inventions of the people who work for the organization. Employees or agents are responsible for protecting the organization’s intellectual property and ensure strict confidentiality.

Finally, there should be no conflict of interest between an employee’s and those of the organisation he serves. A conflict of interest happens when your personal interests influence (or appear to influence) your ability to act in the best interest of your organization. Organizational information and resources should not be used for personal gain. You should never use your contacts or position with the organization to advance your own private business or financial interests.

5.0 SUMMARY

In this final unit, we shall consider the forms and methods by which regulatory authorities carryout their supervisory roles and responsibilities. In doing this, we defined the term supervision; listed out and briefly describe the different forms of supervision; enumerated and discuss the conditions for effective banking supervision; explained the role of global supervision, foreign bank branches and cooperation with foreign supervisors; stated the roles and responsibilities of stakeholders in ensuring good ethical conduct in the banking industry.

By this development, we have come to the end of the course.

6.0 TUTOR-MARKED ASSIGNMENT (TMA)

1. Define the concept ‘supervision’. What is the difference between this term and regulation?

2. State the differences between on-site and off-site supervisory activities.

3. List and briefly describe some of the conditions necessary an effective banking supervision.

4. What are the roles and responsibilities of stakeholders in ensuring organisation’s ethics?

Suggested answers:

Regulations refer to a set of guide, rules and regulations governing actions, while supervision is the surveillance and enforcement to ensure that those set of guide; rules and regulations are implemented or followed.