This is how you handle impartiality in practice - a guide for employees and managers

We hear more and more about impartiality, conflicts of interest, and integrity. But what does it actually mean in daily life and how does one handle it in practice? This guide is for you who want to improve routines regarding conflicts of interest and impartiality.

What is impartiality really about?

Impartiality is not about distrust, it is about protecting trust. When an employee assesses or makes decisions in matters where they themselves, a close associate, or a company they are connected to may have interests, doubts may arise about whether they are impartial. Such situations can weaken trust in the organization – regardless of whether something is actually wrong.

The most common mistakes

Before we delve into how to handle impartiality well, it is worth mentioning some typical mistakes:

Silence: Employees refrain from speaking up, often because they are uncertain about what is relevant and there is no simple way to signal concern.

Timing: Impartiality is assessed too late, usually after the decision has been made.

Manual handling: Organizations lack systems to follow up, and the assessments get lost in emails and notes.

The consequence? Increased risk of criticism, unknown exposures to e.g. customers and suppliers, and in the worst case, damaged reputation and violations of regulations.

What should managers do?

Provide security for employees

Clear communication about the importance of impartiality and an open culture makes it easier for employees to speak up.

Build system and structure

A digital impartiality register is an effective tool for collecting, following up, and documenting exposures and possible conflicts of interest. This also lowers the threshold for employees to report their exposures without feeling they are a burden with their private investments.

Think prevention, not fire-fighting

Impartiality is something that must be managed in advance and where it is too late when something has gone wrong. Having routines and systems to detect conflicts of interest early serves as a form of insurance: you reduce the risk of critical errors, loss of trust, and damage to reputation.

Adapt the system to your routines

A good impartiality register should be able to adapt to the organization's own guidelines and practices. Some have requirements for a minimum period of ownership for shares before they can be sold, or established procedures for who should approve new exposures. Others have detailed rules on how close associates should be reported and involved. The better the system reflects reality, the easier it will be to ensure compliance in practice.

Do you want to know how your organization can better handle impartiality in practice?

Contact us for more information about an impartiality register that suits you.