Lately I have been hearing a lot about "hidden agendas" and "conflict of interests." I was accustomed to dealing with these "challenges" on a daily basis with my fellow Corporados, but I sure would like to keep them to an absolute minimum in this fine small town, as they generally lead to no good.

Now insofar as our local public officials are concerned, the only way a conflict of interest exists is apparently when the official stands to profit personally by promoting the competing interest in question, in which case he or she abstains and generally does not participate in the decision. When I was a member of the town budget committee, my fellow members always dutifully recused themselves or abstained from the vote when such a situation presented itself. One member had a spouse who worked for the school and she would abstain on the vote for the collective bargaining agreement. Three members who live in Kearsage Village went one step further and abstained on the vote for road betterment. It even cost them the vote. That seemed like the right thing to do and, to their credit, they did it. A member of the planning board who works for one of the town's prominent developers always steps down and sits in the audience when her boss makes a presentation. She removes all doubt.

Perhaps my own feelings of what a conflict should be raises the bar to a unrealistically high level, but I believe a conflict occurs when a person has a duty to promote one interest but elects to promote a competing interest instead. In short, a conflict of interest exists whenever an official chooses to promote an interest in competition with the organization of which he or she is an official. It represents a potential incentive for bias. This is not considered a conflict as it relates to our town?s officials as long as it does not involve the potential for financial gain. This also applied to me when I was on the budget committee and the planning board, and I agree with it.

However, lack of disclosure is an entirely different matter. By not disclosing competing interests, a person acting in a representative capacity is playing with a hidden agenda whether intended or not. Again, when I was on the budget committee, I concurrently was a member of the Red Cross board of directors and that of the North Conway Community Center. Several members were on many other boards. We always disclosed this before making our arguments and making our recommendations. There were no hidden agendas. The problem with an undisclosed conflict of interest is that two parties to a transaction may both believe their interests are being promoted, when at least one of them is wrong. This is a matter of great concern at present in business organizations, most of which have now adopted strict conflict policies including full disclosure. Such policies around disclosure should also be of concern to nonprofit organizations and to public officials. They should not be immune in my view.

Let's suppose, hypothetically speaking, that one of the school board members, John Smith, is also a board member of a village business association. This member votes against a proposal to raise funds by purchasing commemorative chairs because he believes it would compete against the business association's program to purchase commemorative bricks. Does this board member have a conflict of interest? In the theoretical sense, yes, but not under our town's policy since there is no profit motivation nor requirement for disclosure. However, what is the right thing for Smith to do in such a situation?

Well for starters, he should fully disclose the potential competing interests. Secondly, he should recognize that his personal interests are subservient to his duties as an insider of the organization he serves, which in this case is the school board. He does not represent his other board when sitting on this board. His sole concern is voting in the best interests of the organization for which he is an elected member. Any other interest is a conflicting interest. If he cannot do this, he should abstain from the vote, but that is strictly his decision. Again, this type of disclosure is not required here. But if it were, all doubt would be removed and "hidden agendas," whether perceived or real, would become largely a thing of the past.

Nonprofit organizations are especially vulnerable to conflict situations. This is due in part to the use of volunteers seeking to help the organization in its business transactions. While the motives of virtually all volunteers are clearly above reproach, a few may offer their services having hidden profit motives. Conflicts can exist involving vendors, employees, and fund raisers, and care must be taken. For example, if the board of a nonprofit is considering contracting a firm for some assignment, and one firm being considered has, as a co-owner, a close relative of one of board's members, then that board member should not vote or discuss on which firm is to be selected.

What does this all mean? Well, for one thing, our town's current approach is a sound one, for to prohibit those conflicts that do not involve financial gain would be unrealistic. The town is far too small, and many of our officials are on too many different boards and committees. However, disclosure should be a requirement regardless of the type of conflict. Hidden agendas are just that, hidden; everything should be on the table and up front. If nothing else, it enriches the discussion and opens new avenues of argument.

As to whether or not an official wants to abstain after disclosure is strictly his or her business and frequently turns on that particular person's own judgment of what is right and what is wrong. Arguably, the aforementioned budget committee members who lived In Kearsage Village did not have to abstain from the vote for road betterment. By choosing to do so, they removed all doubt.

Let's consider adding disclosure to our policies. Let's do it regardless of the nature of the conflict. Let's put it all on the table. As a minimum, let's get rid of the term "hidden agendas."

"I have found that being honest is the best technique I can use. Right up front, tell people what you're trying to accomplish." Lee Iacocca

Ted Sares, PhD, is a private investor who lives and writes in the White Mountain area of Northern New Hampshire with his wife Holly and Min Pin Jackdog. He writes a weekly column for a local newspaper and many of his other pieces are widely published. Ted has been elected to a number of Municipal positions both in Massachusetts and New Hampshire and has served on the Board of several prominent non-profit organizations. He is currently on the Board of Trustees of the Conway Public, NH Library.