Print4.3 Example of COI policy
Let us look at what the company ArcelorMittal defines as conflicts of interest in its Code of Business Conduct.
Conflicts of Interest
ArcelorMittal recognizes that we all have our own individual interests and encourages the development of these interests, especially where they are beneficial to the community at large.
However, we must always act in the best interests of the Company, and we must avoid any situation where our personal interests conflict or could conflict with our obligations toward the Company.
As employees, we must not acquire any financial or other interest in any business or participate in any activity that could deprive the Company of the time or the scrupulous attention we need to devote to the performance of our duties.
We must not, directly or through any members of our families or persons living with us or with whom we are associated, or in any other manner:
- have any financial interests that could have a negative impact on the performance of our duties, or derive any financial benefit from any contract between the Company and a third party where we are in a position to influence the decisions that are taken regarding that contract; or
- attempt to influence any decision of the Company concerning any matter with a view to deriving any direct or indirect personal benefit.
We must inform our supervisor or the Legal Department of any business or financial interests that could be seen as conflicting or possibly conflicting with the performance of our duties. If the supervisor considers that such a conflict of interest exists or could exist, he or she is to take the steps that are warranted in the circumstances. If the case is complex, the supervisor is to bring it to the attention of the Vice-President of his or her division, the Chief Executive Officer or the General Counsel.
Receiving Gifts or Benefits
We must not profit from our position with ArcelorMittal so as to derive personal benefits conferred on us by persons who deal or seek to deal with the Company. Consequently, accepting any personal benefit, such as a sum of money, a gift, a loan, services, pleasure trips or vacations, special privileges or living accommodations or lodgings, with the exception of promotional items of little value, is forbidden.
Any entertainment accepted must also be of a modest nature, and the real aim of the entertainment must be to facilitate the achievement of business objectives. For example, if tickets for a sporting or cultural event are offered to us, the person offering the tickets must also plan to attend the event. In general, offers of entertainment in the form of meals and drinks may be accepted, provided that they are inexpensive, infrequent, and, as much as possible, reciprocal.
As these instructions cannot cover every eventuality, we are all required to exercise good judgment. The saying «everybody does it» is not a sufficient justification. If we are having difficulty deciding whether a particular gift or entertainment falls within the boundaries of acceptable business practice, we should ask ourselves the following questions:
Is it directly related to the conduct of business? Is it inexpensive, reasonable, and in good taste? Would I be comfortable telling other customers and suppliers that I gave or received this gift? Other employees? My supervisor? My family? The media? Would I feel obligated to grant favours in return for this gift? Am I sure the gift does not violate a law or a Company policy?
In case of continuing doubt, we should consult our Supervisor or the Legal Department.