Introduction
In a similar vein with conflicts of interest, conflicts of loyalty might occur with board members who represent more than one organization or corporate entity. This lesson will speak to conflicts of loyalty and offer solutions for navigating these conflicts should they occur.
Definition & Meaning
Conflicts of loyalty occur when a board member has loyalty to two or more competing organizations/entities and a vote that benefits one of the organizations is to the detriment of one or more of the others.
Some describe this as wearing multiple hats. Which hat are you wearing at any given moment? If you are a board member of your NA and also on the board of D4C, you have 2 hats to wear. While sitting in a meeting for D4C, it is expected that your loyalty is aligned with D4C. If at any point deliberation or a vote comes up that would benefit D4C but would be to the detriment of your NA, follow the expectations below. This process can be followed for any board member who sits on multiple boards that might come into conflict.
Board Members Are Expected To:
- Declare any conflicts of loyalty
- Read and sign the conflict of loyalty form
- Abstain from any vote connected to the conflict of loyalty in a way that in irreconcilable
A useful reference can be found at https://www.nhnonprofits.org/sites/default/files/attachments/2022-10/conflicts_of_interest_conflicts_of_loyalty.pdf