Conflicts of interests can occur when staff members are ethically compromised in a work situation because there is a personal, financial or competitive agenda at stake. In early childhood education and care settings, conflicts of interest can interfere with the ability to make impartial, child-centred decisions, and can subtly erode trust and compromise the well-being of children.
It is therefore crucial that all staff and committee members at a service understand conflicts of interest and proactively address them to maintain integrity and ensure the highest standards of care. Clear, transparent policies, rigorous and fair recruitment, and ongoing training can mitigate conflicts of interest and ensure children’s best interests are always prioritised.
What is a conflict of interest?
The NSW Office of the Children’s Guardian (2022) defines a conflict of interest as a “situation where a conflict arises between a person’s official duties and their private interests, which could influence the performance of those official duties. Such conflict generally involves opposing principles or incompatible wishes or needs and can involve:
- pecuniary interests e.g. financial interests or other material benefits or costs
- non-pecuniary [financially or materially beneficial] interests
- the interests of the employee, members of the employee’s immediate family or relatives; business partners, associates or friends
- relationships with a history of enmity [hostility] or negative responses.” (p. 2)
Conflicts of interest can be categorised as actual, potential, or perceived, and they manifest in various forms, including financial, relational, and competitive.
Boundary setting in ECEC
Fundamentally, conflicts of interest involve personal gain at the expense of an organisation or situation, and in the case of ECEC, they can jeopardise the safety and well-being of children. It is vital to establish clear professional boundaries in ECEC settings to protect children.
Some common examples in early education settings include:
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Gifts and benefits: Accepting gifts or favours from parents, suppliers, or other stakeholders, which could influence decision-making.
Common scenarios:
Case study 1: The babysitting educator
Sophie, an educator at a long daycare service, has been asked by a family to babysit their child outside of hours. The extra income would be helpful.
What to do: If the service chooses to allow educators to babysit for families, there should be a clear policy in place that outlines expectations, boundaries, and professional conduct. The policy should also clarify that the service is not liable for any private arrangements as parents may feel entitled to take legal action against the service were something to happen to the child while being babysat by the educator.
Alternatively, consider including the following statement in policies, position descriptions, centre code of conduct: “To uphold a child-safe environment and prioritise the protection of children, educators are not permitted to provide babysitting services for children currently enrolled in the service.”
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Case study 2: Procurement dilemma
In a small regional town, director Tony becomes aware that the room leader has been purchasing supplies from her cousin’s business. The prices seem higher than usual, and Tony suspects she may be receiving kickbacks.
What to do: Tony should initiate a transparent review of procurement processes and report the potential conflict of interest to the committee. Future purchases should follow a documented process that includes seeking multiple quotes and declaring any personal connections. Ensure that the service has a clear and transparent policy for procurement and that all team members are across it and reminded of it at least annually.
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Case study 3: Enrolment queue jumping
Shanaz, a committee member at a community preschool, approves first-round enrolment offers. Several families express concern after learning that Shanaz's close friends were offered places ahead of others on the wait list.
What to do: The committee should introduce a clear, documented enrolment policy and remove individual discretion from the decision-making process. Shanaz should step back from any enrolment-related duties to prevent future perceived or actual conflicts.
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Case study 4: Being a friend
Emily, an OOSH educator, has formed a close bond with 9-year-old Lucas, who frequently confides in her about his distress following his parents' separation. Out of concern, Emily unintentionally reinforces this by spending extra time with him and subtly validating his negative views about home. Emily knows Lucas’s family as she has had dealings with the family business. He begins expressing a preference for being with Emily over his mother. Her emotional involvement risks crossing professional boundaries and undermining Lucas’s family relationships.
What to do: Emily should seek reflective supervision to address the conflict of interest and re-establish professional boundaries. With the help of her coordinator, Emily should support Lucas by promoting emotional literacy, speaking positively about his family, and collaborating with his parents and the team to strengthen his connections at home and in care.
Professional love can still play a role here and the relationship between Emily and Lucas can still prevail. However, Emily needs to consider whether her relationship with Lucas is impacting the relationship he has with his family. Emily should always use strengths-based language when communicating with Lucas about his family emphasising any positive moments of love and care she observes from the family. This helps Lucas (and Emily) to recognise the bias they may have formed about Lucas' parents which may have been present in Emily's and Lucas' conversations. Recognising this bias can support Emily in her true professional role, which is to support Lucas and his family.
Do any of these scenarios ring a bell? Leaders and educators are encouraged to consider how personal interests could potentially cloud professional judgement in their own service. By developing clear policies and building a culture of trust and honest communication, services can uphold ethical standards that safeguard children and their right to a nurturing environment.
Putting a ‘conflicts of interest’ framework in place
To prepare for potential conflicts of interest, ECEC services are encouraged to:
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Establish policy guidelines: Develop a policy and form (to be signed on commencement of employment and annually) that states staff and committee members are required to disclose any potential, actual or perceived conflicts of interest, including relationships with families, suppliers, or other relevant parties.
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Encourage open and honest discussion: Make discussing potential ethical dilemmas and conflicts of interest a routine part of team meetings and individual supervision sessions. Encourage staff to proactively raise concerns or seek guidance in a safe and supportive environment. Use reflective questions to prompt critical thinking about potential biases and ensure confidentiality where appropriate.
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Design a pathway: Outline a step-by-step process for staff on how to identify, manage and declare conflicts of interest.
Procedures should address:
- how to report a potential or actual conflict of interest
- who to report it to (e.g. director, committee chairperson)
- when to seek external advice such as regulatory organisations (e.g. Office of the Children’s Guardian or ACECQA), industrial relations or legal professionals
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Contact CELA member support: If CELA members have concerns about a potential conflict of interest, they can call us on 1800 157 818 and speak to a specialist.
The value of reflective supervision
Reflective supervision can also be useful if a situation arises, or a staff member needs further guidance. Commonly used by social workers or psychotherapists, reflective supervision is a collaborative, relationship-based approach that allows educators to explore their thoughts, emotions, and experiences with the guidance of a trusted supervisor. In ECEC, where the work is emotionally demanding and deeply relational, reflective supervision offers support and structure for team members to think critically about their practice, manage complex emotional dynamics, and uphold professional and ethical boundaries.
In ECEC settings, educators often develop strong bonds with children and families. While these relationships are important to quality care, they can sometimes blur the line between personal and professional. Reflective supervision helps team members stay emotionally available to children while maintaining appropriate boundaries that support safety, ethical practice, and emotional wellbeing. It also allows educators to explore internal conflicts, such as personal bias, or dual relationships, that may influence their responses and decision-making.
References
NSW Office of the Children’s Guardian (2022). Recognising and managing conflicts of interest. (https://ocg.nsw.gov.au/sites/default/files/2022-02/fs_rc_recognising_managing_conflicts_of_interest.pdf)
O’Rourke, K. (2011). Reflective supervision: Supporting reflection as a core professional value to improve practice. International Journal of Child, Youth and Family Studies, 2(1/2), 25–34.
Rushton, I., & Suter, M. (2021). Reflective practice for teaching in lifelong learning (2nd ed.). London, UK: Bloomsbury.
Further reading
Office of the Children’s Guardian: Recognising and managing conflicts of interest
https://ocg.nsw.gov.au/sites/default/files/2022-02/fs_rc_recognising_managing_conflicts_of_interest.pdf
Fair Work Commission: Managing conflicts of interest
https://www.fwc.gov.au/registered-organisations/regulatory-education-and-engagement/education-resources/good-governance-3