Avoiding Conflicts of Interest in Member Organization Elections

Transparency and fairness are the foundations for effective democracy. However, many factors can harm members’ trust in your organization’s elections, including conflicts of interest (COI).

COIs happen when a staff or a board member’s personal interests prevent them from acting impartially. These individuals can’t be impartial, which leads to many potential issues, from mismanaged funds to election interference. COIs can have a devastating impact on your members. Responsible organizations need a plan for addressing these conflicts of interest head-on.

Recognizing, disclosing, and managing potential COIs are essential for maintaining members’ trust, but these conflicts aren’t always easy to spot. Follow this guide to understand why conflicts of interest are so damaging and how to better manage them in your member organization.

The 3 Types of Conflicts of Interest

Conflicts of interest vary. Some COIs revolve around nepotism, while others are purely for financial gain. Three types of COIs could compromise your elections:

• Financial: With a financial conflict of interest, board members have economic ties that bias their decision-making. A type of financial COI is the acceptance of gifts, where outside parties gain undue influence over your organization’s leadership.
• Relational: Relational conflicts interfere with objective decision-making. Friendships, romances, or family ties could affect how a leader steers your organization. Nepotism, which favors family members over other (often more qualified) candidates, is a type of relational COI that hurts member trust.
• Professional: Self-dealing is a type of professional COI where leaders make decisions that benefit their own businesses or investments. They have conflicting duties for personal and professional gain, leading them to promote policies that align with their interests at your organization’s expense.

The Organizational Harms of Conflicts of Interest

Some conflicts of interest seem relatively minor, while others can have a tremendous impact on your organization. Nearly all COIs cause some level of harm, whether interfering with election transparency or discouraging voter engagement.

1. Bias and Governance Integrity

Unfortunately, conflicts of interest can skew election outcomes. This is one of the most harmful impacts of COIs because it doesn’t reflect the true will of your membership.

For example, there’s a risk of collusion when co-op leaders have close-knit relationships with a service organization. If this service organization provides services to the co-op, members could believe that those involved unfairly benefit from that relationship — especially if there are ballot measures regarding that service provider.

Members will be less likely to support leadership and organizational governance if they believe outside parties can interfere with the organization’s mission. It’s crucial to take action against COIs to maintain member trust long-term.

2. Member Participation and Engagement

If members believe their favored candidate has zero chance of winning because of nepotism or favoritism, they’re unlikely to vote. Not only does this limit the number of candidates (and choices) on the ballot, but it also reduces participation across the board.

If members think your elections are biased or only specific candidates have access to opportunities, they likely will voice their frustrations, won’t participate in the election — or stay members for very long. Managing COIs helps your organization avoid the appearance of favoritism and bring more diverse perspectives to the table.

3. Voter Apathy

Appearances matter in member organizations. If your leadership team gives off the impression of predetermined or manipulated elections, members won’t trust the system anymore. If they don’t trust you, they won’t participate in an election they consider a charade.

No member organization can operate with high levels of voter apathy. Tackling this perception of unfairness is crucial for encouraging more people to participate in the democratic process.

4. Legal and Security Risks

Conflicts of interest pose legal challenges. For example, many financial COIs can lead to breaches of governance policies or even the law. Members very well could file a grievance against your organization due to these COIs, leading to expensive and drawn-out legal disputes.

Not only that, but known COIs can lead to security problems. They create vulnerabilities where leaders might manipulate election results, putting your reputation and compliance at risk.

Managing Potential Conflicts of Interest

Board members should do the right thing and disclose conflicts of interest, but not everyone will. It’s your organization’s duty to ensure fairness and transparency, which means making a plan for managing COIs. Follow these steps to actively manage conflicts and safeguard your elections from potential interference.

Promote COI Awareness Through Policies

The best way to fight conflicts of interest in your organization is to spread awareness. Employees, members, and the board should understand what a COI is and how it affects organizational governance. Since every member organization is different, this allows you to define COIs in your space.

However, awareness is just the first step. To fight COIs, you need a formal written policy in place. The Montana Nonprofit Association (MNA) has a comprehensive conflict of interest policy you can use for inspiration. Anyone pursuing a leadership role should review and sign your policy to qualify as a candidate.

Disclosing Conflicts of Interests

Not all conflicts of interest are unethical. Sometimes simply disclosing relationships or ties is enough to avoid potential issues. Still, every organization should create guidelines for when and how leaders should disclose potential conflicts of interest.

For example, disclosing COIs after being elected to a position isn’t permissible. You can also require people to submit COIs in writing to an ethics committee for review. This committee needs processes in place to weigh the potential impacts of these COIs — and that includes having the authority to remove individuals from the ballot, if necessary.

Personalize Your Approach to COIs

Conflicts of interest are tricky to manage. One COI might be catastrophic in one organization, but a minor footnote in another. That’s why taking a personalized approach to managing conflicts of interest is so important.

Depending on your organization’s needs, bylaws, and governance policies you may have three courses of action for managing COIs:

• Removal: Some leaders will have unresolvable and severe conflicts of interest. It’s best to ask them to step back from a leadership role in these cases. For example, imagine a board member of a non-profit dedicated to environmental conservation who also owns a company that profits from deforestation. This COI compromises the organization’s mission and credibility because the board member’s financial interests directly oppose the goals of environmental preservation. It’s reasonable to remove them from a leadership position in this situation.
• Replacement: Removal works well for mitigating COIs, but it leaves a leadership vacuum. In this case, follow the bylaws to replace the removed leader with a new one without conflicts of interest. The removed person can still be a member of the organization, while their conflict-free replacement will take over leadership responsibilities.
• Recusal: Recusal is a middle-of-the-road option where people with conflicts of interest recuse themselves from decisions related to their COI. For example, if a board member owns a business that offers services to the organization, they should recuse themselves from influencing vendor decisions. Recusal allows the leader to stay in their role but minimizes their impact on outcomes that would benefit them personally. However, recusal isn’t an option for more serious conflicts of interest, so use your best judgment or consult your legal advisor.

Mitigating Conflicts in Member Elections With Survey & Ballot Systems

You can do a lot internally to manage COIs, but even then, it might not be enough. Your organization’s primary focus is on its mission and members. You don’t have the time or tools to ensure the highest election standards. This lack of specialization can result in insufficient attention to COIs.

Your best bet is to partner with an experienced election partner. Survey & Ballot Systems helps member organizations mitigate the effects of COIs with a specialized, multifaceted approach that safeguards member trust and election security at every turn.

Specialized Election Focus

Survey & Ballot Systems has earned the trust of over 120 million voters and manages 850+ elections annually. Our specialized focus allows us to navigate the complexities and nuances of your election processes with unparalleled precision and attention. With over 30 years of experience managing elections of all types, we have the knowledge and professional expertise to help your organization overcome many common issues, including conflicts of interest.

Transparent, Impartial Election Management

Managing elections internally could inadvertently introduce bias into your elections. SBS operates with complete neutrality to ensure fair, unbiased elections for all of your stakeholders. Unlike service organizations with multiple obligations, we’re only focused on the integrity of your elections. No external factors compromise the fairness and transparency of your election, giving your members a truly impartial experience.

Guaranteed Inclusivity

SBS knows that inclusion is critical to fair, democratic elections. Our remote, in-person, and hybrid voting solutions are designed with accessibility in mind, regardless of how members vote. Our platform even complies with ADA Section 508. SBS helps you avoid any exclusionary practices of membership-based models, guaranteeing every voice is heard equally.

Accountability & Client Trust

Client trust is our top priority. We go the extra mile to ensure fair and reliable election outcomes. SBS is accountable to the highest standards of integrity and transparency. We conduct quality assurance on our databases, follow a sophisticated chain-of-custody process for election mailings, and adhere to best-in-class cybersecurity practices. Plus, you get a dedicated account manager for your election from start to finish.

Continuous Improvement and Compliance

SBS invests in continuous improvement to offer the best possible voting experience. We take robust measures, like using an enterprise-grade data center and TLS encryption, to keep your election secure and auditable.

Most member organizations have to follow stringent election requirements. Instead of managing this yourself, give our team your list of requirements, and we’ll design a fully managed voting option that’s both convenient and compliant.

Whether you’re looking for an impartial election platform for managing conflicts of interest or need to overhaul your entire election process, Survey & Ballot Systems is here for you. Get in touch with us today to design more accessible, transparent member elections.