Most people have heard the term "conflict-of-interest". However, often there is confusion about what is meant by the term and whether there are ethical or legal ramifications of such conflicts.
A possible conflict-of-interest exists if an employee (or an employee family member):
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has an existing or potential financial or other interest which impairs, or might impair, that person's independent, unbiased judgment when performing responsibilities to the University.
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has a significant business relationship with a person or firm engaging, or seeking to engage in, business with the University.
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has a significant ownership interest, and may receive a financial or other benefit from knowledge or information confidential to the University.
Individuals have an obligation to avoid conflicts-of-interest or any appearance of conflicts between their personal interests and the interests of the University. Conflicts-of-interest can arise because of circumstances alone (n appearance) without any action on the part of the employee. However, it is also important to recognize that in some cases the risk to all concerned is so small that the University agrees to accept the existence of the conflict.
Conflicts-of-interest often relate to situations where an employee uses influence with the University for personal gain. The following situations are examples of conflicts-of-interest:
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An employee negotiates or approves a contract or purchase on behalf of the University and has an interest in or receives a personal gain from the company providing the goods or services.
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An employee uses University facilities or other assets for personal gain.
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An employee directs other employees to perform tasks for an outside business which the employee has an interest in or receives personal gain.
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An employee sells products or services offered by the University in competition with the University.
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An employee responsible for initiating or approving purchases is given a substantive gift by a vendor used by the University (for example a trip).
If an actual or potential conflict-of-interest is disclosed, the affected employee should refrain from further participation in the matter to which the conflict relates until the question of conflicts has been resolved. The Vice President for Human Resources, in consultation with University Legal Counsel will review all disclosures, and together with the cognizant vice president, will pursue resolution of such conflicts. Annually, the Internal Audit Department performs a conflict-of-interest disclosure statement circularization for selected individuals.
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