I'd like to share some practical experience from one of my prior worlds, the
world of education, somewhat in support of the response from Olivia below.

We had a high powered Board comprised of members many of whom had unique
professional credentials, or if not unique, were clearly the "best in the
field."  On some occasions, the organization (a  501c3) felt it highly
desirable to hire a Board member as a consultant.  There were a number of
rules we followed in those rare cases.  First, there had to be a clear
statement filed with the Board and the auditors of the nature of the
assignment.  Second, we made sure that the amount of payment was not
"material."  And third, the Board member was instructed to recluse
him/herself in the case of any discussion or votes on subjects related to
the consulting assignment.

While some felt clearly that we should avoid the appearance of a conflict of
interest at all costs, the necessities of the business sometimes required
the procedures noted above.  Business life sometimes require compromise, as
long as such compromise is done within a legal framework, some organizations
tolerate less than a perfect state of being.  Other organizations are not in
the situation I described above, and can readily obtain the best
consultants, or well qualified consultants, who are not Board members, and
therefore need not face this compromise situation.

And that's the rest of the story (a great line from Paul Harvey).   If you
need more details, don't hesitate to email me off-line.    Hope this is
helpful.   /ken brown
----- Original Message -----
From: "Olivia S. Anastasiadis" <[log in to unmask]>
To: <[log in to unmask]>
Sent: Monday, August 14, 2000 1:27 PM
Subject: Re: Ethical question


> It does sound like a conflict of interest.  But you know, it happens all
> the time, and if the board member has expertise that cannot be
> immediately acquired from someone else, you end up finding yourself going
> with the flow.  Are they reducing his/her fee?  If the duties are
> absolutely separate, and everything is above board with that, and if the
> board members do not object, then there is nothing really you can do
> other than whisper it's a conflict, and get on with your side of things.
>
>
> O
>
> Olivia S. Anastasiadis, Curator
> Richard Nixon Library & Birthplace
> 18001 Yorba Linda Blvd.
> Yorba Linda, CA  92886
> (714) 993-5075 ext. 224; (714) 528-0544
>
> On Mon, 14 Aug 2000 10:17:54 -0600 Chuck Stout <[log in to unmask]> writes:
> > I'd like to tap the wisdom of the list on yet another ethics
> > question. Is it ethical for a museum board member to also be a paid
> > consultant to that museum? The board isn't involved in making the
> > hiring decision (the museum director is), and the board member has
> > no influence on the hiring decision (beyond what any "outsider"
> > would have). The consulting work is related to, but in no way a part
> > of, the person's duties on the board-- so it's not a matter of being
> > paid to do work that other board members do for free.
> >
> > I've turned it over and tried to examine it from all angles in my
> > mind, and can't see any problem with it, but I'd really like to hear
> > from others with more experience. Is this in any way a conflict of
> > interest?
> >
> > Thank you.
> >
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