Correcting a Conflict After It Becomes an Issue
In Saybrook, IL, two members of both a sportman's club and a village
board of trustees resigned their sportman's club membership so they
would have no conflict voting on annexation of the club by the village.
According to <a href="http://www.pantagraph.com/articles/2008/11/29/opinion/letters/134290.tx…; target="”_blank”">a
letter to the editor</a> of the Bloomington Pantagraph, the two members reserved
their right to rejoin the club after the annexation issue was dealt
with. Does resigning like this negate any conflict of interest?<br>
<br>
When there is a financial interest involved, there are situations
where, for example, selling stock would allow one to vote. Yes, one
could buy the stock again, but then any public official could buy the
stock after the matter was dealt with, and they would be in the same
situation.<br>
<br>
But if it were a private company, and the official had been involved as
something more than merely a financial investor, I don't think selling
out would not be enough.<br>
<br>
When, as here, there is no apparent financial interest, but a strong
interest nevertheless in an organization, strong enough to participate
on its board, then resigning would not be enough to negate the
conflict. It would certainly do nothing about an appearance of
conflict, and there is no indication that one's loyalties and feelings
of obligation would not still be divided.<br>
<br>
Resignation and sale are not magic incantations. People who think like this
do not understand that conflicts of interest simply exist, and they can
be corrected not by trying to change the conflict, but by withdrawing
from involvement when a conflict becomes a problem. Certainly, if a
conflict will clearly lead to more than the very occasional problem
down the road, it is right to resign or sell or whatever it takes to
get rid of the conflict. But you can't wait to do this until the
conflict has become an issue.<br>
<br>
Robert Wechsler<br>
Director of Research-Retired, City Ethics<br>
<br>
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