CONFLICTS OF INTEREST POLICY

Introduction

In the course of business, situations may arise in which an organization decision-maker has a conflict of interest, or in which the process of making a decision may create an appearance of a conflict of interest.

All directors and employees have an obligation to:

1. Avoid conflicts of interest, or the appearance of conflicts, between their personal interests and those of Unitarian Universalist Worldwide Youth Network Inc in dealing with outside entities or individuals,
2. Disclose real and apparent conflicts of interest to the Board of Directors, and
3. Refrain from participation in any decisions on matters that involve a real conflict of interest or the appearance of a conflict.

What Constitutes a Conflict of Interest

A conflict of interest arises when a director or employee involved in making a decision is in the position to benefit, directly or indirectly, from his/her dealings with Unitarian Universalist Worldwide Youth Network Inc or person conducting business with Unitarian Universalist Worldwide Youth Network Inc.

Examples of conflicts of interest include, but are not limited to, situations in which a director or employee of Unitarian Universalist Worldwide Youth Network Inc:

1. Negotiates or approves a contract, purchase, or lease on behalf of Unitarian Universalist Worldwide Youth Network Inc and has a direct or indirect interest in, or receives personal benefit from, Unitarian Universalist Worldwide Youth Network Inc or individual providing the goods or services;
2. Negotiates or approves a contract, sale, or lease on behalf of Unitarian Universalist Worldwide Youth Network Inc and has a direct or indirect interest in, or receives personal benefit from, Unitarian Universalist Worldwide Youth Network Inc or individual receiving the goods or services;
3. Sells products or services offered by Unitarian Universalist Worldwide Youth Network Inc in competition with the organization;
4. Receives a substantial gift from a vendor, if the director or employee is responsible for initiating or approving purchases from that vendor.

Interests are considered reportable as a possible conflict under this policy if they exceed one-percent of the ownership or profits interests in a business or partnership. Indirect interests include those interests held by spouses, children, brothers, sisters, and spouses of children, brothers, and sisters.

Disclosure Requirements

The first step in addressing conflicts of interest is disclosure. A director or employee who believes that he/she may be perceived as having a conflict of interest in a discussion or decision must disclose that conflict to the group making the decision. Most concerns about conflicts of interest may be resolved and appropriately addressed through prompt and complete disclosure. In furtherance of that objective, Unitarian Universalist Worldwide Youth Network Inc has adopted the following requirements:

1. On an annual basis, all directors, the executive director, members of senior management, and employees with purchasing and/or hiring responsibilities or authority shall make a written disclosure to the executive director and the chair of the finance committee of all reportable conflicts.
2. Prior to the preparation of the disclosure statements, the accounting department shall distribute to the persons identified in the preceding step a list of all vendors with whom Unitarian Universalist Worldwide Youth Network Inc has transacted business at any time during the preceding year, along with a copy of the disclosure statement;
3. The executive director shall review all forms completed by employees, and the audit committee shall review all forms completed by directors and the executive director, and determine appropriate resolution in accordance with the next section of this policy.

Resolution of Conflicts of Interest

All real or apparent conflicts of interest shall be disclosed to the Audit Committee and the Executive Director of Unitarian Universalist Worldwide Youth Network Inc.

The audit committee shall be responsible for making all decisions concerning resolutions of conflicts involving directors, the executive director, and other members of senior management.

Should the reportable conflict involve a member of the audit committee other than the chairperson of the audit committee, the chairperson shall be responsible for making all decisions concerning resolutions of conflicts involving the audit committee member. Should the conflict involve the chairperson of the audit committee, the chairperson of the board of directors shall be responsible for making all decisions concerning resolutions of the conflict.

The Executive Director shall be responsible for making all decisions concerning resolutions of conflicts involving employees below the senior management level, subject to the approval of the audit committee.

A director or employee may appeal a determination that an actual or apparent conflict of interest exists. The appeal must be directed to the chairperson of the board. Appeals must be made within 30 days of the initial determination. Resolution of the appeal shall be made by vote of the full board of directors. Board members who are the subject of the appeal, or who have a conflict of interests with respect to the subject of the appeal, shall abstain from participating in discussing or voting on the resolution, unless discussion is requested by the remaining members of the board.

Violations of This Policy

Given the importance of resolving conflicts of interest, violations of this policy, including failure to disclose conflicts of interest, may result in termination of a director, executive director, or member of senior management (at the direction of the audit committee) or employee (at the direction of the executive director or chairperson of the audit committee).

Disciplinary Action

Failure to comply with the standards contained in this policy will result in disciplinary action that may include termination, referral for criminal prosecution, and reimbursement to Unitarian Universalist Worldwide Youth Network Inc or to the government, for any loss or damage resulting from the violation. As with all matters involving disciplinary action, principles of fairness will apply. Any employee charged with a violation of this policy will be afforded an opportunity to explain their actions before disciplinary action is taken.

Disciplinary action will be taken:

1. Against any employee who authorizes or participates directly in actions that are a violation of this policy.
2. Against any employee who has deliberately failed to report a violation or deliberately withheld relevant and material information concerning a violation of this policy.
3. Against any director, manager, or supervisor who attempts to retaliate, directly or indirectly, or encourages others to do so, against any employee who reports a violation of this policy.