What is a conflict of interest policy?

A conflict of interest policy is designed to address and manage situations in which personal interests or affiliations of individuals may interfere with their ability to act in the best interests of the organization. Such policies typically outline the types of situations that could lead to a conflict, the process for disclosing potential conflicts, and the steps that should be taken to resolve those conflicts. This ensures transparency and maintains the integrity of the organization by preventing any actions that could be detrimental to its goals or integrity.

In this context, understanding a conflict of interest policy is crucial because it helps protect the organization from potential legal issues, maintains trust among stakeholders, and promotes accountability within the organization's leadership and membership. The other options, while related to organizational practices, do not properly encapsulate the specific focus of a conflict of interest policy. They address different aspects of organizational management and ethics, but lack the particular framework and intent of managing personal versus organizational interests.