POLICY ON CONFLICTS OF INTEREST AND COMMITMENT
AFFECTING UNIVERSITY EMPLOYMENT
THE UNIVERSITY OF NORTH CAROLINA AT GREENSBORO
(Approved by the Board of Trustees, November 18, 1993)
(Amended, February 9, 1996)
I. Introduction
On April 16, 1993, the Board of Governors of The University of North Carolina adopted Policies and
Guidelines Concerning Conflicts of Interest and Commitment Affecting University Employment. The
Board directed constituent institutions to adopt complementary policies and procedures, including
definitions of conflicts of interest, methods for publicizing institutional definitions and requirements, and
procedures and forms for disclosing relationships and circumstances that may raise questions about
conflicts of interest.
The number and complexity of relationships between universities and members of their faculties
and research staffs on the one hand and private industry, the federal and state governments, and the
nonprofit sector on the other, have grown substantially in recent years. Faculty and EPA nonfaculty
employees are encouraged to engage in such outside relationships if those activities are consonant with
the University’s threefold mission of teaching, research and service. Facilitating the transfer of
knowledge and technology to improve society is an important goal of cooperative University-industry
and faculty-industry relationships. The purpose of this Policy on Conflicts of Interest and Commitment
Affecting University Employment is to provide guidelines for those relationships and procedures that
will help insure the primacy of academic integrity.
This Policy is not intended to be a static document. Rather, it must evolve as the University and its
community evolve in response to the broader societal environment. All affected employees are
encouraged to propose additions or changes to the Policy. Unit heads should actively solicit
recommendations from employees within their units. Recommendations for alterations to the Policy
should be submitted to the Office of the Provost and the Faculty Senate.
The Policy is organized into twelve sections:
I. Introduction
II. Relation to Other Policies and Laws
III. Applicability
IV. Definitions
V. Conflicts of Commitment
VI. Conflicts of Interest
VII. Categories and Examples of Potential Conflicts
VIII. Submission of Disclosure Forms
IX. Review of Disclosure Forms and Approval of Waivers
X. Appeals
XI. Confidentiality and Record Keeping
XII. Certification of Compliance and Report to Granting Agency of Irresolvable
Conflicts
II. Relation to Other Policies and Laws
A. Federal Regulations and Guidelines
This policy is designed to comply with the National Science Foundation's Investigator Disclosure
Policy, 60 F.R. 132, pp. 35810-823 (July 11, 1995) and the U.S. Department of Health and Human
Services' Objectivity in Research Rules, Subpart F - Responsibility of Applicants for Promoting
Objectivity in Research for which PHS1 Funding Is Sought, 42 C.F.R. Part 50, Subpart F.
B. State Statutes
North Carolina law prohibits state employees from directly or indirectly entering into or
otherwise participating in any business transaction involving public funds (regardless of the
source of the funds) with any firm, corporation, partnership, person or association which at any
time during the preceding two-year period had a financial association with such employee.
North Carolina law explicitly prohibits self-dealing (using one’s University position to gain an
unfair personal business advantage), misuse of confidential University information for personal
gain, and having any personal interest in supplying goods to the state. State employees who
have contracting responsibilities are prohibited from accepting gifts (other than honoraria or
other items of nominal value) from contractors doing business or seeking to do business with the
state.
C. Other University Policies
This policy supplements other University policies, including the Policy on External Professional
Activities for Pay, the Policy on Political Activities of University Employees, the Patent and Copyright
policies, the Regulations on Academic Freedom, Tenure and Due Process, and the Personnel Policies for
Designated Employment Exempt from the State Personnel Act.
III. Applicability
This policy applies to all full and part-time faculty other than adjunct faculty (unless the adjunct
faculty member is applying for or is an investigator on projects funded by federal grants), and to all full
and part-time EPA nonfaculty employees. This policy also applies to faculty and EPA nonfaculty
employees who are on a research leave or leave of absence.
IV. Definitions
A. “Business” means any corporation, partnership, sole proprietorship, firm, franchise, association
organization, holding company, receivership, business or real estate trust, or any other legal
entity organized for profit or charitable purposes. “Business” excludes entities controlled by the
University.
B. The term “employee” means all covered faculty and EPA nonfaculty employees.
C. A “significant financial interest” means anything of monetary value, including but not limited to,
salary or other payments for services (e.g. consulting fees or honoraria); equity interests (e.g.
stocks, stock options or other ownership interests); and intellectual property rights (e.g. patents,
copyrights and royalties from such rights).
The term does not include:
(1) Salary, royalties, or other remuneration from the applicant institution;
1 Public Health Service
(2) Income from seminars, lectures, or teaching engagements sponsored by public or
nonprofit entities;
(3) Income from service on advisory committees or review panels for public nonprofit
entities;
(4) An equity interest that when aggregated for the employee and the employee's immediate
family or household, meets both of the following tests: (a) Does not exceed $10,000 in
value as determined through reference to public prices or other reasonable measures of
fair market value, and (2) does not represent more than a five percent ownership interest
in any single entity; or
(5) Salary, royalties or other payments, including consulting fees, that when aggregated for
the employee and the employee's immediate family or household over the next twelve
months, are not expected to exceed $10,000.
D. An employee’s “immediate family or household” includes the employee’s spouse, life-mate,
child, parent, sibling, grandparent and persons living in the employee’s home who have a close
personal relationship to the employee (i.e., one who is merely a rent paying tenant would not be
included).
E. The “initial reviewing official” is the person designated by this policy as responsible for
receiving an employee’s annual disclosure form and for determining whether any Category II or
III conflicts exist. The initial reviewing official is the employee’s unit head. In the case of
employees who hold administrative positions, department chairs will report to their deans,
deans will report to the Provost, directors will report to the appropriate vice chancellor or the
Provost (depending on who has primary responsibility for supervision of the director), and Vice
Chancellors and the Provost will report to the Chancellor.
V. Conflicts of Commitment
The term “conflict of commitment” relates to an individual’s distribution of efforts between
obligations to one’s University employment and one’s participation in other activities outside of
University employment. The latter may include such generally encouraged extensions of professional
expertise as professional consulting. Such activities promote professional development and enrich the
individual’s contributions to the institution, to the profession, and to society. However, a conflict of
commitment occurs when the pursuit of such outside activities involves an inordinate investment of time
that interferes with the employee’s obligations to students, to colleagues, and to the missions of the
University.
It is the policy of the University that employees are expected to devote their primary professional loyalty, time,
and energy to their teaching, research, service and other University duties. Accordingly, outside activities and
financial interests must be arranged so as not to interfere with the primacy of these commitments. Failure to do so is
a breach of this policy and may constitute misconduct or neglect of duty.
VI. Conflicts of Interest
The term “conflicts of interest” refers to situations in which financial or other personal
considerations may compromise, or have the appearance of compromising, an employee’s professional
objectivity in meeting University duties or responsibilities, including research activities. The bias that
such conflicts may impart can affect many University duties, including decisions about personnel, the
purchase of equipment and other supplies, the collection, analysis and interpretation of data, the sharing
of research results, the choice of research protocols, and the use of statistical methods. An employee may
have a conflict of interest when the employee, or any member of the employee’s immediate family or
household, has a personal interest in an activity that may affect decision making with respect to
University teaching, research or administration.
It is the policy of the University that employees must avoid conflicts of interest that have the potential to affect
adversely the University’s interests, to compromise objectivity in carrying out University responsibilities, or
otherwise to compromise the performance of University responsibilities. Accordingly, personal activities and
financial interests must be arranged so as to avoid such conflicts. Failure to do so is a breach of this policy and may
constitute misconduct or neglect of duty.
VII. Categories and Examples of Potential Conflicts
Activities that may involve conflicts of interest or commitment can be categorized into three general
groups based on the potential for adverse impact on the University's interests. Category I includes those
activities that, while conflicts in the technical sense, are allowable because they are not likely to
compromise the employee’s objectivity. Category II includes those activities that may be allowable with
administrative approval and oversight. Category III includes those activities that are presumed to be
inappropriate.
Provided below are illustrative, but not all inclusive, examples of activities in each of the three
categories.
A. Category I - Activities That Are Routinely Allowable and Are Not Required to Be Disclosed
Pursuant to This Policy2
1. Receiving royalties for published scholarly works and other writing or for inventions
pursuant to the Patent and Copyright policies.
2. Having a financial interest in a corporation, the exclusive function of which is to
accommodate the employee’s external consulting activities.
3. Receiving nominal compensation, in the form of honoraria or expense reimbursement, in
connection with service to professional associations, service on review panels,
presentation of scholarly works, and participation in accreditation reviews.
B. Category II - Activities That May Be Allowable Following Disclosure and, Where Necessary, the
Implementation of Monitoring Procedures
External Activities
1. Serving on the board of directors or scientific advisory board of an enterprise that
provides financial support for University research conducted by the employee or a
member of the employee’s immediate family or household.
2. Serving in an executive position in a for-profit or not-for-profit business which conducts
research or other activities in an area related to the employee’s University duties.
Financial Interests
2 Although Category I activities need not be reported under this policy, reporting may be required under other
policies such as the Policy on External Professional Activities for Pay.
1. Requiring students to purchase the textbook or related instructional materials of the
employee or members of the employee’s immediate family or household, which produces
compensation for the employee or member of the employee’s immediate family or
household.
2. Receiving compensation or gratuities (other than occasional meals, nominal gifts, etc.)
from any individual or entity doing business with the University.
3. Having a significant financial interest in a for-profit business which conducts research or
other activities in an area related to the employee’s University duties.
4. Having a significant financial interest in a business that competes with services provided
by the University.
C. Category III - Activities That Are Presumptively Not Allowable
Research
Activities
1. Participating in University research involving a technology owned by or contractually
obligated to (by license or option to license) a business in which the employee or a
member of the employee’s immediate family or household, has a significant financial
interest or holds an executive position.
2. Participating in University research which is funded by grant or contract from a business
in which the employee or a member of the employee’s immediate family has a significant
financial interest.
3. Assigning students, postdoctoral fellows or other trainees to University research projects
sponsored by a business in which the employee or a member of the employee’s immediate
family or household has a significant financial interest
4. Accepting support for University research under conditions that require research results
to be held confidential, or unpublished, or inordinately delayed in publication (other than
as allowed by Patent and Copyright policies or by policy of the Board of Governors dated
February 12, 1988, Administrative Memorandum No. 260).
Self-Dealing
1. Making referrals of University business for an external enterprise in which the employee
or a member of the employee’s immediate family or household has a significant financial
interest.
2. Associating the employee’s own name with the University in such a way as to profit
financially by trading on the reputation or goodwill of the University.
Other
Making unauthorized use of privileged information acquired in connection with one’s
University responsibilities.
VIII. Submission of Disclosure Forms
All employees are required to complete and submit a disclosure form (Attachment A) on an annual
basis as of July 1 to their initial reviewing official as defined in Section IV.E. Updated forms must also be
submitted throughout the year if circumstances arise which either give rise to a potential conflict of
interest or eliminate a potential conflict previously disclosed.
IX. Review of Disclosure Forms and Approval of Waivers
A. Initial Review
The initial reviewing official shall have the initial responsibility for reviewing the form and for
determining compliance with this policy. That determination involves two questions: (1) has
the form been properly submitted (i.e., on time and complete) and (2) does the information
provided reveal any conflicts or potential conflicts in Categories II or III?
B. Failure to Submit or Improper Submission of Disclosure Forms
If the initial reviewing official determines that a form has not been submitted or is incomplete,
the initial reviewing official shall take action to obtain compliance with this policy, including, if
necessary, recommendations for disciplinary action.
C. Category II Conflicts
If the initial reviewing official determines that an employee has a Category II conflict the
following options are available, depending on the circumstances:
1. The employee may take necessary steps to eliminate the conflict (e.g., through divestiture
of a financial or ownership interest or through cessation of the activity); or
2. The initial reviewing official may grant a waiver with or without specified conditions
(e.g., public disclosure of significant financial interests, or modification of the research
plan) or monitoring requirements.
D. Category III Conflicts
If the initial reviewing official determines that an employee has a Category III conflict, the
employee must, upon receipt of notice from the initial reviewing official, take immediate steps
to eliminate the conflict or apply for a waiver. In order to obtain a waiver, the employee must
sustain the burden of demonstrating that, in fact, the employee’s objectivity would not be
adversely affected or University interests otherwise would not be damaged. If the initial
reviewing official decides to grant a waiver, with or without conditions, of a Category III
conflict, the decision and the reasons for it must be forwarded to and reviewed by the next
highest administrator who may accept, reject or modify the decision.
X. Appeals
An employee may appeal a reviewing official’s determination that a disclosure form has been
improperly submitted or that a Category II or III conflict exists. An employee may also appeal the denial
of an application for a waiver. The appeal shall be considered as an employee grievance and shall be
handled under existing grievance appeal procedures for faculty and EPA nonfaculty employees.
XI. Confidentiality and Record Keeping
Completed disclosure forms are confidential personnel records as defined by the State Personnel
Records Act. The provisions of that Act governing access to and confidentiality of personnel records shall
be strictly observed.
Upon completion of the review process, the initial reviewing official should retain a copy of the
disclosure form and send the original to the Office of the Provost for storage in the employee’s official
personnel file.
XII. Certification of Compliance and Report to Granting Agency of Irresolvable Conflicts
A. Certification of Compliance
Pursuant to 42 C.F.R. § 50.604 (g), each application for PHS funding must contain the following
certification: “(1) There is in effect at UNCG a written and enforced administrative process to identify and
manage, reduce or eliminate conflicting interests with respect to all research projects for
which funding is sought from the PHS.
(2) Prior to UNCG's expenditure of any funds under the award, UNCG will report to the
PHS awarding component the existence of a conflicting interest (but not the nature of the
interest or other details) found by UNCG and assure that the interest has been managed,
reduced or eliminated in accordance with 42 C.F.R., Part 50; and, for any interest that
UNCG identifies as conflicting subsequent to the Institution's initial report under the
award, the report will be made and the conflicting interest managed, reduced or
eliminated, at least on an interim basis, within sixty days of that identification.
(3) UNCG agrees to make information available, upon request, to the HHS3 regarding all
conflicting interests identified by UNCG and how those interests have been managed,
reduced or eliminated to protect the research from bias.
(4) UNCG will otherwise comply with 42 C.F.R., Part 50.”
B. Report of Irresolvable Conflicts
Conflicts in any activity involving outside funding which cannot be satisfactorily managed,
reduced or eliminated must be disclosed to the granting agency in accordance with the
National Science Foundation's Investigator Disclosure Policy, 60 F.R. 132, pp. 35810-823 (July
11, 1995). The initial reviewing official will be responsible for making the required disclosure
to the granting agency.
3 U.S. Department of Human Health Services |
|
