National Organic Standards Board

Policy Development Committee

Proposal

Conflict of Interest

 March 29, 2012 

I. Introduction

The National Organic Standards Board (NOSB) is seeking to enhance the NOSB’s 

conflict of interest (COI) policy by providing two definitions and outlining general 

procedures for declaring, evaluating, and acting upon a COI. The recommendations are 

responsive to a number of requests by stakeholders to improve the NOSB COI policy. 

The proposed additions should provide greater transparency of and expectations 

around NOSB members’ work on behalf of the organic community.

NOSB’s Policy Development Committee (PDC) initially presented a version of this 

recommendation at the November, 2011 NOSB meeting. Based on feedback from the 

National Organic Program, the NOSB and the public, the PDC chose to retract the 

recommendation and make substantial revisions. 

II. Background

The NOSB recognizes that members have been specifically appointed to the NOSB to 

provide advice and counsel to the Secretary of Agriculture concerning policies related to 

the development of organic standards and the creation of amendments to the National 

Organic Program’s National List. NOSB members have been appointed because they 

represent various interests involved in the organic community, enabling them to advise 

the Secretary of Agriculture on the implementation of the Organic Foods Production Act 

(OFPA). The statutory composition of NOSB is composed of 15 members. OFPA 

describes the composition of the NOSB as follows:

• four (4) members who own or operate an organic farming operation;

• three (3) members with expertise in areas of environmental protection and 

resource conservation;

• three (3) members who represent the public interest or consumer interest 

groups;

• two (2) members who own or operate an organic handling operation; 

• one (1) member who owns or operates a retail establishment with significant 

trade in organic products;

• one (1) member with expertise in the fields of toxicology, ecology, or 

biochemistry; and

• one (1) member who is a certifying agent.

NOSB members – like most federal advisory board members - are chosen specifically 

because of their professional expertise within a given area. Especially since NOSB 

members represent sectors of the industry directly impacted by the board’s decisions, it 

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is necessary to maintain a clear and detailed NOSB COI policy. To prevent overt 

advocacy for direct financial gain and the appearance of self-interest or the appearance 

of wrongful activity, the NOSB has adopted a COI policy (NOSB, Policy & Procedures 

Manual (2011, pg. 9). At this time, the PDC of the NOSB seeks to update the Board’s 

policy and procedures on COI. 

The proposed COI policy will enhance and build upon the existing NOSB’s COI policy. 

The recommendations include definitions of key terms and guidance on the procedural 

steps to be followed in declaring and acting upon a COI. 

III. Relevant Areas of the Rule

The OFPA establishes the NOSB at §2119 (7 U.S.C. 6518) (a). It reads, “The Secretary 

shall establish a NOSB (in accordance with the Federal Advisory Committee Act (5 

U.S.C. App. 2 et seq.) (hereafter referred to in this section as the "Board") to assist in 

the development of standards for substances to be used in organic production and to 

advise the Secretary on any other aspects of the implementation of this title.” The 2011 

NOSB Revised Policy and Procedures Manual (PPM) dated April 29, 2011 on page 9 

sets forth the current NOSB’s COI policy. The professional conduct of NOSB members 

are alluded to in the PPM on page 8. Therefore, action and activities of the NOSB 

members on matters pertaining to organic should be in the best interest of the organic 

community as a whole. 

IV. Discussion

The benefits of the proposed recommendations include providing clear definitions of key 

terms and providing procedural steps for managing a COI in the course of the NOSB’s 

business. The updated COI policy will provide greater transparency and confidence in 

Board decisions by the organic community. 

An alternative approach would be to keep the current COI policy. However, an

enhanced COI policy should help the Board’s in its continued responsiveness to the 

organic community’s feedback and address a number of opportunities for enhanced 

clarity, particularly with regard to the specific procedures to be followed in declaring, 

evaluating, and acting upon a COI. 

Previously, the June, 1999 NOSB Procedures Taskforce Report to the Board on COI 

was approved. The Board’s COI policy was updated to read:

Members of the Board shall refrain from taking any official Board action from 

which that Board member is or would derive direct financial gain. Board 

members shall disclose their interest to the Board and the public, when they or 

their affiliated business stand to gain from a vote, which they cast in the course of 

Board business. Under certain circumstances, the Board may determine whether 

it is appropriate for the member to vote. 

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That members of the Board shall refrain from promoting for consideration any 

material, process or practice for which the member is or would derive direct 

financial gain arising out of such Board action. The act of promoting such 

material, process or practice shall include private discussion with members of the 

Board advocating the value of the material, public discussion and/or written 

advocacy.

A “direct financial gain” is defined as monetary consideration, contractual benefit 

or the expectation of future monetary gain to a Board member, including but not 

limited to, financial gain from a party who manufactures, distributes or holds 

exclusive title to a formula for a material or product, process or practice. [NOSB’s 

PPM, 2011, page 9.]

The current document seeks to enhance the existing COI policy. It attempts to do so by, 

(1) proposing clear definitions for “conflict of interest,” and “immediate family member,” 

and (2) suggesting procedural steps for dealing with a declared COI. 

V. Recommendations

Recommendation #1

The first three paragraphs shown below are on page 9 of the 2011 PPM and will remain 

the same. 

The NOSB recognizes that members have been specifically appointed to the 

NOSB to provide advice and counsel to the Secretary concerning policies related 

to the development of organic standards and the creation and amendment of the 

National List. NOSB members have been appointed because they have 

professional expertise which enables them to advise the Secretary. This 

professional expertise may, at times, present an inherent COI. To prevent overt 

advocacy for direct financial gain and the appearance of self-interest or the 

appearance of wrongful activity, the NOSB has adopted an updated COI policy.

Members of the Board shall refrain from taking any official Board action from 

which that Board member is or would derive direct financial gain. Board 

members shall disclose their interest to the Board and the public, when they or 

their affiliated business stand to gain from a vote, which they cast in the course of 

Board business. Under certain circumstances, the Board may determine whether 

it is appropriate for the member to vote. 

That members of the Board shall refrain from promoting for consideration any 

material, process or practice for which the member is or would derive direct 

financial gain arising out of such Board action. The act of promoting such

material, process or practice shall include private discussion with members of the 

Board advocating the value of the material, public discussion and/or written 

advocacy.

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Recommendation #2

The definitions below are to be inserted before paragraph #4 on page 9 of the 2011 

PPM. 

The term “conflict of interest” is defined as a situation in which there is an actual 

or potential direct financial interest of a Board member which could impair the 

individual's objectivity or which has the potential to create an unfair competitive 

advantage for said Board member, board member’s immediate family member, 

or Board member’s organization or affiliated business.

An “immediate family member” includes a Board member’s relative by blood or 

marriage who may be a spouse or partner, children or step children, parents or 

step-parents, brother or sister.

 

A “direct financial gain” is defined as a monetary consideration, contractual 

benefit or the expectation of future monetary gain to a Board member, including 

but not limited to, financial gain from a party who manufacture distributes or holds 

exclusive title to a formula for a material or product, process or practice. 

Recommendation #3

We recommend the added section below. 

Procedural Steps for a COI Determination and Resolution

1. Each Board member is responsible for declaring his/her COI when an issue is 

first being discussed, to include one’s participation on a committee, task force, or 

full NOSB meeting. 

2. In opening the discussion of each issue and prior to each vote, the chair will ask 

all Board or committee members to raise any COI or potential COI in that 

particular matter. 

3. Upon such declaration, the member may voluntarily refrain from participating, or 

may request that the Board or committee decide whether the conflict warrants 

said Board member abstaining from participating in the discussion in said matter 

and from voting on said matter.

4. The chair will ask the Board or committee for any objections to the Board 

member participating in said discussion or voting on said matter. If no member(s) 

object, then said Board member may participate in said discussion and vote on 

said matter. If any member(s) do object, then said matter will be subject to a full 

Board or committee vote. The motion requires a simple majority to pass. 

5. The Board’s or committee’s final decision on all COI must be clearly recorded in 

the minutes.

 

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VI. Summary

NOSB members with diverse backgrounds are recruited to provide balance to the 

NOSB. While individual NOSB members represent the segments of the population from 

which they were selected, they also represent the greater good of the population as a 

whole. The revised COI policy and procedures are an attempt to address several 

stakeholders’ request for updating the Board‘s COI policy and provide for a greater level 

of transparency in the deliberation, discussion, and voting on matters pertaining to the 

Board authority for the benefit of the organic community. 

VII. Committee Vote:

Moved: Barry Flamm Second: Jean Richardson

Yes: 8 No: 0 Abstain: 0 Absent: 0 Recusals: 0

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