Kentucky Center for Performance Excellence, Inc. (KyCPE)
Public Statement Regarding Conflicts of Interest
Our Commitment to Quality and Fairness
The Kentucky Center for Performance Excellence (KyCPE) was established as a nonprofit organization to advance quality and performance excellence in Kentucky as a public good. The Board honors these values by requiring the highest ethical standards of the board members, committee members, volunteers, and staff, by using KyCPE’s assets efficiently for the organization's philanthropic objectives and by taking measures to assure that decisions are not influenced by self-interest. We have established internal controls that are intended to prevent and resolve conflicts of interest, and to comply with federal and state laws concerning conflicts of interest.
While it is the KyCPE’s policy that conflicts of interest and appearances of conflicts of interest be kept to a minimum, the organization has always included, and benefited from including, directors, advisors, volunteers, and staff with close associations with other charitable and for-profit entities that may be beneficiaries of the organization’s products and services. It is predictable that people with interest and expertise in the nonprofit and for-profit sectors often will have such associations. KyCPE will not discriminate against worthy award recipients because its board members, committee members, volunteers, and staff serve those recipients in some role. This Policy describes, among other things, how decisions involving these and similar situations should be dealt with to ensure the integrity and fairness of the awards process. Its basic purpose is to avoid both the reality and the perception board members, committee members, volunteers, or staff have used their positions to derive inappropriate financial, personal or institutional benefits, and it should be interpreted and applied to achieve this purpose.
Board of Directors Conflict of Interest Policy
The Board of Directors maintains a conflict of interest policy dealing with economic benefit obtained by a board member for services or goods furnished to KyCPE. The policy allows board members to furnish goods and/or services to the organization and to be compensated for those goods and services only if: (1) the price is fair and reasonable to KyCPE and (2) the reasonableness is determined and voted upon by directors with no financial interest in the transaction.
Consulting Services Provided on Behalf of KyCPE
KyCPE maintains a conflict of interest policy dealing with consulting services provided by board members, committee members, volunteers, or staff to third parties. Under no circumstances will KyCPE, its board members, committee members, volunteers, or staff provide paid consulting services to assist applicants for a KyCPE award through the examination process. KyCPE services provided to KyCPE award applicants are provided by KyCPE board members, committee members, and staff as volunteers. If an applicant desires paid consulting services to assist with the award application process, KyCPE will refer that applicant to an independent, third party for such services.
KyCPE’s conflict of interest policy dealing with consulting services permits KyCPE board members, committee members, volunteers, and staff to provide paid consulting services to organizations when such services are not part of the award application process. The conflict of interest policy requires that there is no conflict of interest between the consultant and the organization served. These consulting services are provided by KyCPE using such KyCPE board members, committee members, volunteers, and staff as subcontractors. In no event does an organization using these consulting services gain any consideration or advantage in the award application process not offered to all organizations participating in the award application process.
Examiner Conflict of Interest
Each volunteer examiner providing services during the award application process is governed by a policy requiring that the examiner certify that there is no conflict of interest between the examiner and the award applicant organization.
General Definition of Conflict of Interest
Conflicts of interest generally derive from a financial benefit gained by a person through simultaneous relationships with multiple organizations. For example, if a person is a board member or key employee of one organization and is also an owner or investor in a second organization, the sale of goods or services from the second organization to the first organization, or vice versa, represents a conflict of interest because it may not be possible to act in the best interest of both organizations at the same time. Likewise, if a family member has a financial interest in the second organization while the person is a board member or key employee of the first organization, a conflict of interest will exist. Other potential conflicts of interest may exist when a person in a decision making role for one organization also has an interest in a second organization, and a competitor of the second organization seeks to do business with the first organization. The question is, can the person render an impartial decision on behalf of the first organization in spite of being a competitor? Conflict of interest policies seek to avoid the conflicts by disqualifying the person with the conflict from acting in regard to the conflict situation.