Avoiding Conflicts of Interest
“We want to prevent potential conflicts of interest between the employees’ responsibilities in their lives inside and outside the Company. We therefore expect our employees to avoid personal financial, commercial or other activities which could be contrary to the legitimate interests of the Michelin Group or that could lead to ambiguous perceptions, given their responsibilities within the Company.”
Michelin Performance and Responsibility Charter (2002), Implementing our values, exercising our responsibilities
Definition
A conflict of interest exists when the personal interests of an employee conflict with the interests of their employer.
Personal interests can be charitable, cultural, financial, political, religious, athletic, through associations, or result from family, sentimental or friendly ties.
There is no legal definition of conflict of interest in all countries, however these behaviors are frequently criminally sanctioned.
A conflict of interest can be actual, potential or apparent:
- Actual conflict of interest: a situation in which an employee has a personal interest that conflicts with Michelin’s interests and that influences the employee in the conduct of their job duties.
- Potential conflict of interest: a situation where the personal interest of an employee could come into conflict with Michelin’s interests; the employee must be vigilant that a potential conflict does not become an actual conflict.
- Apparent conflict of interest: a situation where the personal interests of an employee could be perceived as a conflict of interest.
Guiding Principles
Each employee must inform their manager and/or the personnel department of any conflict of interest situation (real, apparent or potential) to ensure that the situation is managed in accordance with Group policy.
Each employee must be particularly vigilant in the event of personal relationships (friends, family, ...) with a person working for a competitor, supplier or customer of the Group. This relationship is not illegal, but it must not act against Michelin's interests.
Any situation which may raise a reasonable doubt as to the impartiality, loyalty to the Group and the ethics of an employee, even wrongly, exposes the employee to the risk of a conflict of interest.
Do: I must
- Seek advice from my manager if my personal situation (or that of my family members) is likely to present a conflict of interest in favor or against the interests of Michelin.
- Avoid giving preference to friends and relations in my decisions and professional activities.
- Ensure that my decisions are always fair and impartial, in the best interests of the Group.
Don't: I must not
- Hold or buy tangible or intangible goods in order to sell or rent them to Michelin.
- Make a decision based on financial interests I hold, in any form whatsoever, in a commercial company controlled by competitors, suppliers or customers of Michelin.
- Lobby for my spouse, one of my parents or one of my children to be hired by a competitor, supplier or customer of the Group.
Practical case 1
You know that your industrial site will soon be launching a call for tenders to select a cleaning company. Your daughter runs a very renowned and successful local business in this field. What attitude should you adopt towards your family and within the Group?
You should avoid any mention of this call for tenders in front of your relatives. You must inform and discuss with your manager the existence of this link which could be considered a conflict of interest.
You should under no circumstances get involved in the selection of suppliers for the call for tenders, or in its implementation.
You are vigilant because you know that even a casual mention of your daughter's activity to a colleague involved in the tender could be interpreted as a conflict of interest.
Practical case 2
Your son, looking for a job, just applied to one of your main customers. During a discussion with this customer, the latter repeatedly mentions your son's application. What should you do?
You must inform your manager of this situation and of this family relationship which could be interpreted as a conflict of interest in the continuation of your relationship with this customer.
Together with your manager, you clarify the situation with your customer, in order to avoid any direct or indirect pressure.
