As part of its educational mission, Xavier University School of Medicine (henceforth referred to as "University") believes in the importance of interacting with the wider community in activities that benefit the participants, the University and the general public. However, while the University's administration recognizes the worthiness of such endeavors, it is also committed to ensuring that these activities are conducted properly, consistent with the management of University business. The interests and commitments of the various parties engaged in external activities are complex and occasionally may conflict or compromise an employee's responsibilities to the University. Under these circumstances, the possibility of perceived or real conflict of interest is heightened.
PURPOSE OF POLICY
The University has formulated the following policy to identify and address potential and actual conflicts of interest and commitment. A fundamental assumption of this policy is that each member of the University community is obligated to act in the best interest of the University and prevent external activities or financial interests from interfering with that responsibility. This policy is intended to increase the awareness of faculty, staff and administrators to the potential for conflicts of interest and commitment, and to establish procedures whereby such conflicts may be avoided or properly managed. It is not the intent of this policy to regulate or eliminate all perceived conflicts of interest, but rather to enable employees to recognize situations that may raise legal and ethical issues and ensure that such situations are properly disclosed, reviewed, appropriately addressed and, if necessary, monitored.
PRINCIPLES UNDERLYING POLICY
When making decisions affecting the University's assets and/or resources, individuals must adhere to the following standards:
- All actions shall be undertaken with the degree of prudence ordinarily expected of individuals in positions of responsibility.
- Individuals shall only make decisions that they believe further the objectives of the University.
- Individuals shall not make any decisions involving the University's resources or assets when those decisions affect their family's personal financial interests.
- Individuals shall not use or dispose of the University's assets and/or resources in any way that impairs the University's standards or conflicts with its programs.
- External activities should not compromise an individual's ability to perform all the activities expected of him or her as a University employee.
DEFINITION OF CONFLICT OF INTEREST
A conflict of interest arises whenever an employee or a member of his or her family:
- (1) Has an existing or potential interest which impairs or appears to impair independent judgment in the discharge of his or her responsibilities to the University, or
- (2) Receives a material benefit from any person or entity which conducts business with the University.
The potential for conflicts arises because of the nature and scope of activities engaged in by the University and its employees. The University administration understands that potential conflicts of interest may occur in the normal performance of activities. Such conflicts need not be harmful, and may even be favorable to the University's interests, as long as they are disclosed and understood within the context of the University's decision-making process. In some cases, the risk to all concerned is so small that the University may agree to accept the existence of this marginal conflict.
STATEMENT OF POLICY
Employees are responsible for disclosing potential conflicts of interest and/or commitment. Full disclosure followed by monitoring and, on occasion, conflict management is the key to preventing and resolving conflict situations. If an employee, in light of University policies, procedures and rules, believes that he or she may have a conflict of interest with respect to any particular transaction or relationship, he or she must disclose promptly and fully the potential conflict to the appropriate supervisor.
CONFLICT OF INTEREST DISCLOSURE PROCEDURE
Any disclosure should be in writing to the employee's supervisor and include the following:
- The type of potential conflict
- The nature of the activity
- A description of all the parties involved
- The potential financial interests or other rewards
- Possible violations of state and federal laws
- Any other information that the employee feels is necessary to evaluate the disclosure
When a conflict of interest is disclosed, the affected employee should refrain from further participation in matters to which the conflict relates until the question of conflict has been resolved. Management, in consultation with legal counsel, will review and determine the appropriate course of action to address the conflict. Disclosure will not necessarily permanently restrict an employee's activities. Conduct that may appear questionable at first may be deemed acceptable and permissible when all facts regarding the activity are examined.
DEFINITION OF CONFLICT OF COMMITMENT
With the acceptance of employment at the University, an employee makes a commitment to the University. A conflict of commitment occurs when an employee's involvement in external activities adversely affects his or her capacity to meet his or her primary obligation to the University due to a perceptible reduction of the individual's time and energy devoted to University activities. Every employee is expected to accord the University his or her primary professional loyalty, and to arrange outside obligations, financial interests and activities so as not to conflict with his or her overriding commitment to the University. Part-time employees, including consultants, are also expected to arrange their outside obligations and activities so as not to conflict with their contracted commitment to the University.
CONFLICT OF INTEREST & NEPOTISM
An employee must not appoint, nor participate in the decision-making process to appoint, a relative to a position within the University. Someone other than the relative must make the decision regarding the appointment. Standards for employment shall consist of individual ability, performance and qualifications for the position.
No employee shall be assigned to a unit or department under the direct supervision or control of a relative. University administrators, faculty and staff shall not participate in institutional decisions involving direct benefits, such as hiring, retentions, promotions, salaries, leaves of absence or awards, to members of their immediate families.
CONFLICT OF INTEREST & VENDORS
No employee of the University who either directly or indirectly influences a purchasing decision or contract by establishing specifications, evaluating products or services, or otherwise being involved in the purchasing or contract process may:
- Have any financial interest or personal beneficial interest in contracts or purchases of goods or services used by the University; or
- Accept either directly or indirectly from a University vendor a rebate, gift or money
All University employees are expected to act with integrity and good judgment and to recognize that the acceptance of personal gifts from those doing business with the University, even when lawful, may give rise to legitimate concerns about favoritism, depending on the circumstances. If an employee has any question regarding the propriety of a gift, the employee should disclose the gift to his/her supervisor for a determination of the proper course of action.
University credit, purchasing power and facilities shall be used for the purchase of goods and services that relate directly to University business and shall not be used to purchase material for individual or non-University activities.
CONFLICT OF INTEREST & UNIVERSITY RESOURCES
Institutional resources shall not be used for personal gain. No University personnel, laboratories, space, services or equipment are to be used without management authorization. When University-owned facilities, equipment or other resources are required for any reason, a contract between the University and the private third party must be executed separately. Compensation to the University must be paid at the fair market rate or at the same rate that such services, facilities or equipment would be available to any qualified non-University user.
CONFLICT OF INTEREST & USE OF THE UNIVERSITY NAME
No employee shall use the University name for advertising purposes. An employee engaging in outside activity may identify an association with the University, but shall take care that the name of the University is not used in any way that implies endorsement or approval of the activity.
CONFLICT OF INTEREST & TEXTBOOKS/ACADEMIC MATERIAL
When selecting textbooks or materials for courses, it is imperative that Deans and faculty members avoid any appearance of a conflict of interest in assigning faculty-authored textbooks or materials in the author's or department's classes. While not expressly prohibited, the assignment of faculty-authored textbooks should ensure that the instructor does not profit from this arrangement. If the spending of such royalties is controlled by the author, or even the department, it could be argued that the motivation for assigning the text is monetary gain, raising an academic integrity issue. As a result, either the price of the textbook or other academic materials should be reduced, or the royalties should be used for a philanthropic purpose within the University, such as scholarships.
CONCLUSION
Conflicts of interest could potentially bias directly or indirectly many activities and aspects of the academic enterprise, particularly when employees are in a position to establish University policies, manage contracts, and select equipment and supplies, or when they have other administrative roles in which objectivity and integrity are paramount. There is always the possibility that the pursuit of individual interests may result in a conflict with those of the University. This places an important responsibility on all employees to recognize potential conflicts and prevent them. The above examples represent only some of the different types of conflicts that an employee may encounter. It is expected that University employees will remain sensitive to the appearance and occurrence of potential conflicts and undertake the various disclosure procedures described in this policy.