Lobbying is a legitimate tool for business and society to influence decision-making by public authorities. At the same time, it requires clear rules and transparency to remain an open and democratic process. An important component of this process is avoiding conflicts of interest during lobbying.
A conflict of interest in lobbying is understood as a contradiction between the commercial interests of beneficiaries, the personal interests of the lobbying entity, and its duties, the existence of which may affect its impartiality.
For example, such a conflict of interest may arise when a lobbyist advocates for different regulatory acts in the commercial interests of several beneficiaries, where the adoption of one act benefits one beneficiary while disadvantaging another.
In Ukraine, according to the requirements of the Law of Ukraine “On Lobbying,” a lobbyist must take measures to prevent conflicts of interest in relations with the lobbying entity.
The Code of Ethical Conduct for lobbying entities provides that the methods for resolving conflicts of interest during lobbying activities are defined by the lobbying agreement and these Rules. If necessary, legal entities - lobbying entities that are public associations or other non-profit enterprises, institutions, or organizations conducting lobbying in the commercial interests of a beneficiary without concluding a lobbying agreement - must take measures to prevent and resolve conflicts of interest in accordance with the requirements of the law and their founding documents or internal rules.
At the same time, it is important to distinguish between a conflict of interest during lobbying and a conflict of interest as defined by the Law of Ukraine “On Prevention of Corruption.”
A conflict of interest during lobbying may arise between the interests of a lobbying entity and the interests, rights, or duties of its clients/beneficiaries.
In contrast, a conflict of interest defined by the Law of Ukraine “On Prevention of Corruption” concerns a contradiction between the private interests of a public official and their official duties, which may affect the objectivity or impartiality of their decisions or the performance or non-performance of actions while exercising their powers. Such a conflict of interest may arise in persons specified in paragraphs 1 and 2 of part one of Article 3 of the Law of Ukraine “On Prevention of Corruption.”
It should be noted that the Law of Ukraine “On Lobbying” establishes clear restrictions to prevent conflicts of interest and abuse of influence. This means that not everyone can acquire the status of a lobbyist.
