Conflict of interest in the public sector arises when (a) official duties, (b) public interest, and (c) personal interest are taking priority one above the other. How can this conflict in administration be resolved ? Describe with an example.

Effect on working of public servant:

1. Prevents objectivity in decision-making. Eg. An IAS in the interview panel which is interviewing a candidate which is a relative.

2. Leads to inducements & corruption. Eg. Awarding a contract to a company where the spouse of the public servant works.

3. Prevents standardisation & consistency in decision-making.

4. Decreases social capital and public trust in the public office. Eg. USA legislators investing heavily in stock markets - allegations of insider trading.

Ways to minimise conflict of interest:

1. Full transparency & disclosures (voluntary) regarding assets & liabilities, of oneself as well as family.
2. Recusing oneself from projects, Tenders involving conflict of interest.
3. Developing objective criterion and SOPs for decision-making. Eg. Open online tender for coal mines.
4. Developing ethical values, probity and following the Code of Conduct in letter and spirit.