Transparency data

Centre for Data Ethics and Innovation – Conflicts of Interest Policy

Published 28 October 2021

This transparency data was withdrawn on 12 September 2023

This content is no longer current. The Centre for Data Ethics and Innovation (CDEI) Advisory Board closed on 9 September 2023.

1. Background

1.1 Members of the Centre for Data Ethics and Innovation (CDEI) Board members are expected to abide by the highest standards of behaviour, as set out in the Seven Principles of Public Life and Code of Conduct for Board Members of Public Bodies June 2019.

1.2 Part of this is to ensure appropriate handling and transparency of any actual, potential or perceived conflicts of interest. Members of the Board have a range of professional and personal connections. These connections can bring benefits to the work of the Board. They can often be part of the reason they have been asked to join in the first place. On occasion, however, they can give rise to actual or perceived conflicts of interest. The existence of a conflict of interest does not reflect on the integrity of the affected member, provided it is properly addressed.

1.3 Board members are personally responsible for:

• Ensuring that they are familiar with this policy on handling conflicts of interest and that they comply with these rules.
• Ensuring that any potential conflict of interest is identified and appropriately addressed at an early stage.
• Declaring conflicts of interest which affect them on appointment and as and when they arise.
• Completing and updating the register of interest statement, kept by the Executive team and publicly available on the CDEI’s website.

1.4 In any case of doubt about the appropriate action in relation to a potential conflict of interest the Chair of the Board and the Executive Director should be consulted at the earliest possible stage.

2. Definition

2.1 A conflict of interest is any situation in which a member of the CDEI Board’s personal interests or loyalties could, or could be seen to, prevent them acting independently and objectively and on the basis of the evidence.

2.2 Conflicts of interest may arise:

• Through a potential financial or non-pecuniary benefit from an activity relating to the development or use of data-driven technology, either directly or indirectly through a connected person.
• When a Board Member’s duty to the Board may compete with a duty or loyalty they owe to another organisation or person.
• When the interest of the CDEI may compete with interests of other organisations which Board Members are associated with.

2.3 Actual, potential or perceived conflicts could arise if, for example, Board members:

• Undertake work for an organisation within or related to the development and use of data-driven technology. This may arise for example if membership on the Board gives associated organisations actual, or perceived, competitive advantage or impacts an individual’s ability to give objective and independent advice.
• Have other financial or non-financial interests in business or sectors which are mainly concerned with the development and use of data-driven technology.
• Bid to carry out work for the CDEI or an organisation with which it is associated or have strong (e.g. financial) interest in bids for CDEI work. See Section 5 for further detail.
• Are compromised in their ability to consider issues without prejudgment and with an open mind, or may be perceived as having been compromised, as a result of strong views expressed previously by the individual.
• Accept gifts or hospitality from business mainly concerned with the development and use of data-driven technology.
• Accept or hold public appointments or outside appointments which might be thought to be relevant to business or sectors mainly concerned with the development and use of data-driven technology.

3. Appointments

3.1 The presence of a conflict of interest does not disqualify an individual from joining the Board. However, any actual, potential or perceived conflicts of interest should be considered as part of the appointments process in line with the definitions and principles set out in this policy.

3.2 It is the responsibility of prospective members of the Board to declare any potential conflicts of interest as part of the appointments process, through application documents, during interviews and as and when they arise. Officials will also perform appropriate due diligence on prospective members of the Board.

3.3 As part of the appointments process, officials will advise Ministers on how to manage any actual, potential or perceived conflicts of interest in line with the considerations set out in this policy. This includes recommendations that a conflict of interest may be too great to be compatible with membership of the CDEI Board, or sufficiently difficult to manage so that an appointment should only be made if the individual resigns other conflicting interests. Appointments to the CDEI Board may be based on such recommendation, but the final decision is at the discretion of Ministers.

3.4 Actual, potential or perceived conflicts of interest may arise during the appointments process as set out in Section 2, for example if

• prospective Board members, or persons or organisations with which they are closely associated, have financial or vested interest that may be in conflict with those of the Centre.
• prospective Board members, or persons or organisations with which they are closely associated, may benefit from access to information or ability to influence decisions through their membership of the CDEI Board.

3.5 Recommendation of managing such actual, potential or perceived conflicts of interest should be in accordance with this policy, and may include:

• ensuring that prospective Board members are aware of this policy prior to final confirmation of appointment.
• agreement with the prospective Board member prior to final confirmation of appointment that specific conflict of interest will be managed in accordance with this policy by, for example: keeping the public register of interest up to date; excusing themselves from certain discussion or activities; being excluded from involvement in bidding for research or commissions.

4. Managing conflicts of interest

4.1 Conflicts of interest are inevitable, but in most cases it is possible to handle them with integrity and probity by ensuring they are identified, declared and managed in an open and transparent way.

4.2 Where a Board Member has an interest or becomes aware of an interest, which could lead to a conflict of interests, whether real or perceived, this must be declared to the Chair of the Board and the Executive Director at the outset of their appointment as a member of the Board, or as soon as they become aware of it and this includes the following circumstances:

• on appointment
• at meetings
• on relevant change to role, responsibility or vested interest outside the CDEI

4.3 The Chair of the Board and the Executive Director are responsible for ensuring that when conflict of interests are declared, arrangements are in place to manage the conflict of interests or potential conflict of interests. When appropriate, managing conflict of interests may involve other parts of DCMS, including but not limited to, relevant policy and commercial teams, Director General’s office, Permanent Secretary’s Office, Minister’s Office. Arrangements will include decisions on if and when an individual should withdraw from a specified activity, on a temporary or permanent basis. When doing so they should, as a minimum, take into account the following factors:

• the seriousness of the connection or perceived connection between the conflict of interest/potential conflict of interest and the matter to be discussed
• the risk whether a Board member may gain a real, or perceived, unfair advantage by influencing discussions and decisions
• the risk that the capacity or perceived capacity of the Board to make decisions lawfully and fairly may be compromised
• the risk that public trust and confidence in the CDEI or its work may be undermined, and
• whether the fair minded and informed observer, having considered the facts, would conclude that there was a conflict or a perceived risk of a conflict.

5. Research and commissions

5.1 The CDEI benefits greatly from the presence of one or more Board members who are, or have been, actively engaging in the research, development and deployment of data-driven technologies. There is no objection, and some advantage, to such members continuing their activities while members of the Board and should not preclude their appointment to the Board. Board members may draw on relevant expertise and related connections when advising on specific projects, but when doing so should consider any real, or perceived, conflict of interest arising in line with this policy.

5.2 At times, the CDEI may wish to procure work such as commissions or research from external parties and this may involve awarding a contract of a significant value. To manage any real or perceived conflict of interest, where a Board member anticipates that they or an organisation they are associated with might wish to bid for a project they should declare that at the earliest opportunity and exclude themselves from any discussion on the procurement process or requirements setting of planned work. In the absence of this happening, the Board member and/or the relevant organisation concerned will not be permitted to tender for the project. A register of such declarations will be kept by the Executive team.

5.3 In the event that a Board member or an organisation they are associated with anticipates that they might wish to tender for a CDEI commissioned project, the Chair and Executive Director will put appropriate measures in place to mitigate any actual, potential or perceived conflicts of interest. These are likely to include:

• Managing procurement throughout in an open and transparent manner, compliant with procurement and other relevant law – to ensure that they do not discriminate against any provider.

• Running an open and fair procurement procedure overseen by the DCMS commercial team, with decisions relating to preventing and mitigating the risk of actual, potential or perceived conflicts of interests to be done in consultation with the commercial team.

• As soon as a potential conflict of interest is identified the relevant Board member is excluded from board meetings, steering group meetings and email communications in regards to preparing and deciding on any relevant commission. Care should be taken by the Executive team to make the Board aware of any research or commissions being considered to help Board members identify in advance when they should remove themselves from formal discussions. Should the relevant Board member have had access to any information that could be deemed advantageous for a potential bid before being excluded from discussions, this will be shared with other bidders in a way that ensures any expectations of confidentiality are met.

• The relevant Board member is expected to exclude themselves from the delivering team on the side of the bidder.

5.4 Board members or organisations they are associated with (such as Board members being employed by or having a financial interest in an organisation) may wish to tender for a project commissioned by one of CDEI’s public sector partners. In such an event, Board members must inform the Executive Director and Chair so they can consider whether there are any relevant actual, potential or perceived conflicts of interest. The Executive Director and Chair may take the following action to mitigate the risk:

• Excluding the relevant Board member from board meetings, steering group meetings and email communications in regards to the commissioning partner’s work.
• Informing the CDEI’s project partner of the potential conflict so they can consider the risk as part of their procurement process.

5.5 Board members may at times, through their connections or involvement with business or sectors mainly concerned with the development and use of data-driven technology, be in a position to offer or arrange pro bono services to the CDEI. Such offers should be considered on a case-by-case basis and subject to the same consideration regarding actual, potential or perceived conflicts of interests as set out in this policy. Additionally, as part of managing actual, potential or perceived conflicts of interests it should be ensured that:

• Any pro bono offer is subject to the same internal approval process and scrutiny as billable work and documented as such through a signed agreement.
• The offer of work has clearly defined scope, along with any associated deliverables.
• There is a clear rationale for the piece of work being delivered, in line with the business objectives, pipelines of work or workforce requirements.
• Any related output in the form of further work or recommendations do not constrain the business in choosing who to compete work with in the future.
• The delivering organisation will be excluded to bid for any billable work arising from the pro-bono work.
• The delivering organisation and associated persons do not gain access to information that could lead to an unfair market advantage.

6. Other financial interests

6.1 Board members should declare if they have direct shareholdings in companies operating in sectors mainly concerned with the development and use of data-driven technology. This extends to close family members3. It does not include funds where the precise composition of holdings is not visible to investors, or where investors have no control over individual investment decisions.

7. Procedure at meetings

7.1 Board members should declare any relevant personal or business interest which may, or may be perceived by a reasonable member of the public, to influence their judgement at the beginning of the relevant item of business. This declaration should include such interests of close family members and of people living in the same household.^{[footnote 1]}

7.2 Where there is a conflict, the Board member must withdraw from the meeting whilst that matter is discussed, unless expressly invited to remain solely in order to provide information.

7.3 All decisions under a conflict of interest will be recorded by the note taker of the meeting and reported in the minutes.

8. Gifts and hospitality

8.1 Board members are encouraged to increase their understanding of sectors mainly concerned with the development and use of data-driven technology by contacts with a wide range of organisations and stakeholders. In doing so, they should maintain high standards of honesty and integrity.

8.2 To avoid any suggestion of impropriety, Board members should not accept any gifts from business and sectors mainly concerned with the development and use of data-driven technology or individuals or organisations relating to it. This does not include low value practical items which are given out freely, such as stationery items provided as part of attendance at a conference.

8.3 A common-sense approach should be taken to offers of hospitality. In a number of settings such as routine meetings, establishing new contacts or undertaking wider stakeholder engagement, acceptance of hospitality should not be problematic. The questions Board members should consider are whether acceptance of hospitality could be perceived to create an obligation and whether a reasonable person might think that acceptance could influence the member’s judgement in relation to a piece of advice.

9. Outside appointments

9.1 Board members should avoid conflicts of interests arising from acceptance of outside appointments during their tenure as a Board member. If Board members intend to take up any appointment which might be thought to relate to data ethics in any way, they should notify the Chair and Executive Director. The Chair and the Executive Director will determine whether holding it at the same time as Board membership would be appropriate.

10. Speaking engagements and social media

10.1 Care should be taken about invitations to speak at conferences or elsewhere, in responding to media enquiries and in the use of social media. Members need to be clear on all these occasions if they are speaking in a personal or a Board capacity.

11. Register of Interests

11.1 Members of the Board should complete an annual register of Interests statement, and notify the Chair or Executive Director of any changes to their register as they occur. The register of interests will be published on the CDEI website.

11.2 The following interests should be declared:

• employment by, or ownership or part-ownership of, businesses or consultancies;
• employment by charities, public bodies or similar organisations;
• directorships, including non-executive directorships of public or private companies;
• significant (3 percent +) shareholdings in public and private companies; and
• membership of other bodies, whether public or private organisations, which may impinge directly or indirectly on the business of the CDEI’s Board; and public appointments.

11.3 Board members should include in the register details of any interest of a member of their close family which could be seen as, or which could give rise to, a conflict with their position on the Board.

1. Close family members include personal partners, parents, children (adult and minor), siblings and the personal partners of any of these. ↩