Conflict of Interest
October 9, 1995 Archived Version (Effective October 9, 1995 through January 8, 2007)
Authority:
Vice Chancellor for Research and Graduate Studies
History:
First Issued: April 16, 1993. Last Revised: October 9, 1995
Related Policies:
BOG Policy 300.2.2 Conflicts of Interest and Commitment Affecting Faculty and Non-Faculty EPA Employees
Additional References:
Annual Faculty Report of Potential Conflict of Interest Activities or Relationships
External Activities for Pay
Conflict of Interest Disclosure and Management
Contact Info:
Vice Chancellor for Research and Graduate Studies (919-515-2117)
1. General
Procedures for Implementation of Policies and Guidelines of the Board of
Governors Concerning Conflict of Interest and Commitment Affecting University
Employment. Procedures for implementation of the policy and compliance with
required reporting mechanisms are contained within this document. In addition,
the realms of Conflict of Commitment and Conflict of Interest are explained
together with how each is to be monitored. All EPA faculty and professional
employees are covered by this policy effective April 16, 1993.
2. Introduction
2.1. Interactions between universities and external organizations have increased
significantly in recent years and now frequently involve relationships among
one or more universities and many external partners. These often complex
relationships require that guidelines, such as this Policy on Conflict of
Interest, be used to assure the importance of academic integrity in research.
2.2. In order to meet the needs of its external customers and at the same time
fulfill its teaching/research/outreach mission, N. C. State encourages its
faculty and other EPA employees to participate in meaningful and appropriate
relationships with industrial, governmental, and private partners. These
partnerships are therefore established for mutually beneficial reasons and
many times produce knowledge and technology that will help to meet societal
needs. These important activities provide a mechanism for the transfer of
knowledge and technology which will help to make the State and Nation more
competitive economically.
2.3. In order to preserve the faculty's freedom to participate in these activities
while insuring that faculty exercise substantial responsibility to avoid
real as well as perceived conflicts of interest, a uniform policy was developed
for N. C. State through the combined efforts of the Research Operations
Council, the University Research Committee and the Faculty Senate. This
policy statement served as the model for the policy adopted (April 16, 1993)
by the Board of Governors for the University of North Carolina System entitled, "Policies and Guidelines of the Board of Governors Concerning Conflicts
of Interest and Commitment Affecting University Employment" (herein,
called the Policy). All faculty and EPA non faculty employees are required
by this University Policy on Conflicts of Interest and Commitment to avoid
conflicts of interest and conflicts of commitment in their relationships
with external organizations. This Policy covers full-time faculty and EPA
non faculty employees, part-time faculty and EPA non faculty employees insofar
as their University responsibilities are concerned, and faculty and EPA
non faculty employees who are on leave if the leave is funded at least partially
from University sources.
2.4. The Policy provides an annual disclosure and approval process for certain
external relationships that supplements other University policies. The Policy
recognizes the desirability of flexibility and the difficulty of anticipating
all situations that may arise. Therefore, it is left to the discretion of
the supervisor of the faculty member or EPA non faculty employee to interpret
and implement the Policy and to evaluate the activity proposed in the context
of the academic unit in question. The supervisor has the initial responsibility
to decide questions of conflict of interest or commitment, according to
the guidelines of this Policy. Prior to submission of a proposed activity
or financial or business relationship for review and approval by the supervisor,
informal discussion between the individual and the supervisor is strongly
encouraged to promote mutual understanding and to prevent avoidable conflicts
from developing.
2.5. The rigorous application of this Policy will be particularly important
in the case of persons exercising significant University authority. Individuals
in administrative positions have substantial influence over others by virtue
of their role in professional appointments, promotions, tenure decisions,
allocations of space, determinations of salary, and the like. While this
Policy is applicable to all faculty and EPA non faculty, those with administrative
responsibilities must take particular care to avoid relationships that have
the potential to advantage the individual but affect adversely the University's
interests. Among the relationships that may adversely affect the University's
interests are relationships that would lead inappropriately to the individual's
personal financial gain, relationships that might adversely affect the professional
academic advancement of colleagues, or relationships that might otherwise
inject inappropriate considerations into administrative decisions.
2.6. Of particular concern is the impact on students and other trainees of
activities that could potentially create conflicts of interest or commitment.
Because of this concern, it is essential that all faculty and EPA non faculty
employees demonstrate at all times their commitment to the highest intellectual
and ethical standards in all aspects of research, teaching, and outreach,
particularly where opportunities for conflict may exist. As a corollary,
the training experiences of students are expected to incorporate the value
of objectivity and the importance of public trust.
2.7. Because of the necessity to avoid conflicts of interest and commitment
and the appearance thereof, the Policy requires each faculty member and
EPA non faculty employee to disclose annually certain financial and other
information. Individual circumstances may require additional or more frequent
disclosure, particularly if there is any significant change in personal
financial or fiduciary status. The information provided must be accurate
and may have a direct bearing on the individual's employment status with
the University. Possible sanctions for violation of this Policy, including
refusal to file the disclosure form or furnishing false, misleading, or
incomplete information on the disclosure form, can range from administrative
intervention to termination of employment, all in accordance with applicable
University policies.
2.8. Finally, if there is federal support for a project in which there is a
failure to comply with these procedures, federal regulations require that
the university report any such failures to the federal agency sponsoring
the project. This reporting will be the responsibility of the Vice Chancellor
for Research and Graduate Studies , and it will be the responsibility of
any employee who is aware of a failure to comply with the procedures contained
in this Manual to report the matter to the Vice Chancellor.
3. Definitions of Conflicts of Interest and Commitment
3.1. The distinction between conflicts of commitment and interest is not always
clear. In general, conflict of commitment should become apparent in the
annual review process conducted by the department head and relates to allocation
of time. Conflict of interest relates to matters which might unduly influence
personal judgment in the conduct of their area of employment. More specifically,
Conflict of Commitment is more easily identified and generally occurs when
the pursuit of outside activities involves an inordinate investment of time
that interferes with the faculty member's obligations to students, to colleagues
and to the missions of the University. Conflict of Interest relates to financial
or other personal considerations that have the potential or the appearance
of compromising the faculty member's objectivity in meeting university duties
or responsibilities, including research activities. The purpose of these
policies is not to limit responsible, external activities but rather to
reduce the probability of inappropriate activities and to ensure that all
activities are properly disclosed. Questions on the Annual Report form are
designed to identify activities that require additional oversight and review
to insure that all activities are properly disclosed. Activities identified
on that form should not necessarily be interpreted as being prohibited but
as being permissible following their report, review and approval.
4. Description of the Process and Appeals Procedures
4.1. Primary review and monitoring of faculty activities related to conflict
of interest and commitment will remain a function of the Department Head
with final approval residing with the College/School Dean. Annually, prior
to the beginning of the academic year, all EPA personnel will complete the
Annual Faculty Report of Potential Conflict of Interest Activities or Relationships.
The employee and department head are to complete and sign the form. The
form will be maintained in the employee's personnel file and no further
action will be required if all questions are answered 'no'. Further reporting
and review will be required for activities identified in the Annual Faculty
Report. The employee should complete the additional disclosure forms as directed on the Annual Faculty Report explaining
these activities. These additional forms will be reviewed by the Department
Head with the employee and signed by both parties. Completed disclosure
forms will be forwarded to the Dean of the College/School for final approval.
All forms will be maintained in the employee's personnel file. All
employees required to file the Annual Faculty Report are also under a continuing
obligation to update information in previous filings and make new filings
at any time during the year should circumstances change.
4.2. If, after review by the Department Head or Dean, questions remain regarding
ethical issues or if disagreement exists between the faculty member and
administration regarding the permissibility of activities, the situation
may be referred to the Faculty/Administrative Advisory Committee for Review
of Conflicts of Interest and Commitment. The Committee will be chaired by
the Vice Chancellor for Research and Graduate Studies with a representative
from the Faculty Senate, Research Operations Council, University Research
Committee, and the Director of Extension (CALS), Director of Technology
Administration and Development, and the University Counsel. Situations involving
graduate students would include the Dean of the Graduate School or a representative.
Decisions by this Committee will be final.
4.3. This manual contains the policy statement of the UNC Board of Governors
regarding Conflicts of Interest and Commitment, the Annual Faculty Report,
and additional necessary report forms as identified on the Annual Faculty
Report. Please note that related forms involved with External
Professional Activities for Pay must be filled out by everyone who consults
and must be approved prior to engaging in any external activity for pay,
regardless of their answer to Questions 4 of the Annual Faculty Report Form.
Make additional copies of the forms as needed. For answers to any questions
or for additional copies of this manual, faculty should contact the research
office in their college or school or the University Office of Research,
Outreach and Extension.
5. Other Definitions
5.1. In the Annual Faculty Report Form and related forms, the following definitions
are used:
5.1.1. "immediate family" means your spouse, and dependent children
living in the home.
5.1.2. "Participant" means any person who receives direct compensation
or any other financial support for themselves or their teaching, research,
outreach, or extension activities.
5.1.3. "University personnel" means all SPA employees, all EPA non-faculty
and all EPA faculty.
5.1.4. "Significant financial interest" is an interest in a business
consisting of stock, stock options or similar ownership in such business,
or anything of monetary value received from such business. It does not
include mutual, pension or other funds over which the employee does not
exercise control of the fund's investment in specific companies. Also
excluded from the definition of "significant financial interest" are interests in business enterprises or entities where both the following
conditions are met: (i) the value of such interest is less than $10,000
for any one enterprise or entity when aggregated for the employee and
the employee's immediate family, and (ii) the interest represents less
than a 5% ownership interest for any one enterprise or entity when aggregated
for the employee and the employee's immediate family.
6. Annual
Faculty Report Forms
NOTE: These Procedures, the Annual Faculty Report form, and the
Appendices to Annual Faculty Report form are implemented in compliance with
(a) the Policies and Guidelines of the Board of Governors Concerning Conflicts
of Interest and Commitment Affecting University Employment, (b) the regulations
of the US Department of Health and Human Services (recorded at 42 CFR Part
50) and (c) the regulations of the National Science Foundation (recorded
at 60 FR 132, pp 35820-35823)
6.1. The Annual Faculty Report Questionnaire on the next page is divided into
three main sections: a) questions 1-5 are directly related to faculty activities
with enterprises external to the University, b) questions 6-7 are related
to activities of students and other personnel employed or supervised by
faculty, and c) questions 8-9 are concerned with the use of faculty owned "property" by the University.
