Conflicts of Interest and Commitment

University Policy 102.2, Conflicts of Interest and Commitment

(Formerly Policy Statement #11)

Executive Summary

Faculty and staff are encouraged to engage in appropriate outside research or non-research activities if the activities are consonant with the objectives of the University. Outside activities and financial interests must be arranged so as not to interfere with the primacy of University commitments. Likewise, employees should avoid conflicts of interest that affect the interests of the University, or compromise objectivity in carrying out University responsibilities. Faculty and staff must complete the Annual Conflict Evaluation forms and submit the forms to their department chairs/unit supervisors no later than October 1 of each year. Updated forms must be submitted throughout the year if changes arise.

Policy Details

Click here for reporting procedure instructions

Introduction

The number and complexity of relationships between universities on the one hand and public and private sources of research support on the other have grown substantially in recent years. The purpose of this Policy on Conflicts of Interest and Commitment is to provide guidelines for those relationships that will help to assure the primacy of academic integrity.

Faculty and EPA staff employees are encouraged to engage in outside relationships with commercial companies, the nonprofit sector, and the federal and state governments if the activities are consonant with the objectives of the University. Such partnership in support of the University’s three-fold mission of teaching, research, and service is encouraged when it produces mutual benefits to participants as well as benefits to society. Facilitating the transfer of technology to improve the health and productivity of society is an important goal of cooperative university-industry and faculty-industry relationships.

An essential part of the University’s commitment to encourage the dissemination of its scholarly research activity and worthwhile technology transfer is protection of the University’s integrity and its fundamental goals of education and open inquiry. To this end, each Covered Person, as that term is defined in Section VIII, “Definitions,” of the Procedures supplementing this Policy, is required to comply with this Policy on Conflicts of Interest and Commitment. Definitions of key terms used in this Policy are provided at the end of the Procedures supplemental to this Policy.

This Policy provides an annual or, if needed, more frequent disclosure evaluation and management process for certain outside relationships that supplements other University Policies. This 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 Conflict of Interest and Commitment (COI) Manager (usually acting in conjunction with the relevant Department Head and, as necessary, the relevant Dean) with oversight from the Conflict of Interest Committee to interpret and implement the Policy and to evaluate the disclosed activity in the context of the academic or administrative unit in question. The COI Manager has the initial responsibility to decide questions of conflict of interest or commitment, according to this Policy and its supplemental Procedures. Prior to submission of a disclosure of a financial or business relationship for review and approval by the COI Manager, informal discussion between the Covered Person and his or her immediate supervisor is strongly encouraged to promote mutual understanding and to prevent avoidable conflicts from developing.

Those with administrative responsibilities must also take particular care to avoid relationships that have the potential to provide an advantage to 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 or personnel decisions.

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 Covered Persons continually demonstrate their commitment to the highest intellectual and ethical standards in all aspects of research, teaching, and service, 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.

Because of the necessity to avoid inappropriate conflicts of interest and commitment and the appearance thereof, this Policy requires each Covered Person annually to submit for evaluation certain financial and other information on the form provided as Attachment 1 to this Policy. 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 Covered Person’s employment status with the University. Possible sanctions for violation of this Policy, including furnishing false, misleading, or incomplete information on the disclosure form, range from administrative intervention to discharge from employment, all in accordance with applicable University Policies.

Federal Regulations

Although this Policy applies to conflicts that may arise with respect to any research or non-research activity conducted under University auspices, federal regulations issued by the National Science Foundation and Public Health Service (“PHS”) set specific requirements for University research funded by those agencies. This Policy is intended to comply with those federal regulations. In particular, each Covered Person is required to comply with the standards set forth by the National Science Foundation, and those Covered Persons who participate in research funded by the PHS or who apply for such funding must disclose additional information required by the PHS.

As a part of its obligations for such federally funded research the University is required to certify in the application for funding from those agencies that UNC Charlotte has in place a written and enforced administrative process to identify and manage, reduce, or eliminate conflicting interests and will comply with all aspects of the federal regulations.

North Carolina 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 source of funds) with any firm, corporation, partnership, person or association which at any time during the preceding two-year period had a financial association with that employee. All employees should remain aware of this prohibition as they recommend business transactions for University approval. 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 any goods to the state. For more detailed analysis of these state law provisions, contact the Office of Legal Affairs.

Relation to Other University Policies

In addition to the North Carolina laws on conflicts of interest and commitment referenced above, this Policy supplements other University policies, including but not limited to “External Professional Activities of Faculty and Other Professional Staff,” the “Patent Policy,” the “Copyright Policy,” the “Tenure Policies, Regulations, and Procedures,” and the “Personnel Policies for Designated Employment Exempt from the State Personnel Act.” Information on these laws and policies is available from the Office of Legal Affairs.

Conflicts of Commitment

The term “Conflict of Commitment” relates to the distribution of effort between one’s University appointment and one’s outside activities. The latter may include professionally related activities such as involvement with professional societies, participation on review panels, and external professional activities for pay. These activities often promote professional development and enrich the individual’s contributions to the institution, to the profession or discipline, and to the community.

It is the policy of the University that faculty and EPA staff employees are expected to devote their primary professional loyalty, time, and energy to their teaching, research, service, and, where applicable, patient care or administrative responsibilities at the University. Accordingly, outside activities and financial interests must be arranged so as not to interfere with the primacy of these commitments.

Conflicts of Interest

The term “Conflict of Interest” refers to situations in which financial or other personal considerations may directly and significantly affect, or have the appearance of directly and significantly affecting, a Covered Person’s judgment in exercising any University Employment Responsibility, including the design, conduct, or reporting of research. The bias that such conflicts may conceivably impart can adversely affect many University activities, including decisions about University employees or the supervision or evaluation of students; equipment and supplies; collection, analysis and interpretation of data; sharing of results; choice of protocol; and the use of statistical methods.

A Covered Person may be considered to have a conflict of interest when he or she or any member of that person’s Immediate Family (as hereafter defined) possesses a Significant Financial Interest in an activity that involves his or her University Employment Responsibilities. In addition, a Covered Person may not, without University approval, conduct research in the field of his or her University Employment Responsibilities, externally and in competition with the University and its legitimate interests, when that research is within the course and scope of his or her University Primary Duties.

It is the policy of the University that Covered Persons are expected to avoid conflicts of interest that have the potential directly and significantly (1) to affect the interests of the University; (2) to compromise objectivity in carrying out University responsibilities; or (3) otherwise to compromise the performance of University Employment Responsibilities. Accordingly, outside activities and financial interests must be arranged so as to avoid such conflicts.

Categories and Examples of Potential Conflicts

Activities that may involve conflicts of interest or commitment fall into four general categories that differentiate relationships according to potential for adverse impact.

Category I consists of relationships that, while including some that are conflicts in a technical sense, are generally allowable because they do not compromise the objectivity of research results, the integrity of faculty-student interaction, or other interests of the University, the sponsor, or the public. These relationships are generally minimal in their personal financial impact, and otherwise do not represent a potential source of unreasonable bias. If these relationships involve the receipt of compensation or reimbursement, they must be reported at least annually so long as they continue to exist and may be subject to investigation and further oversight by appropriate University personnel.

Category II consists of relationships that may be permissible following administrative review and analysis. Such relationships may necessitate supervisory procedures designed to preclude bias or inappropriate activities and to ensure academic standards, intellectual values, and institutional integrity.

Category III consists of relationships presenting such serious problems that they are generally presumed to be inappropriate for a Covered Person. In such cases, a heavy burden will rest with the Covered Person to demonstrate to the University’s satisfaction the compatibility of such practices with University policy prior to going forward with the proposed activity and implementation of an appropriate management plan.

Category IV consists of relationships that are not permitted.

Provided below are representative but not all-inclusive examples of activities in each of these three categories.

Category I: Activities That Are Allowable But Are Required To Be Disclosed

Receiving royalties for published scholarly works and other writings or for inventions, pursuant to University Policy 301, Patent Policy and University Policy 315, Copyright Policy.
Receiving 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.

Category II: Activities Requiring Disclosure for Further Administrative Review and Analysis

A Covered Person requiring students to purchase the textbook or related instructional materials written or copyrighted by the employee or members of his or her Immediate Family, which produces compensation for the employee or family member.
A Covered Person receiving compensation or gratuities from any individual or entity doing business with the University. Note that no University employee may seek or receive any gift, reward, or promise of reward for recommending, influencing, or attempting to influence the award of a contract by his or her employer (See G.S. 14-234 and G.S 138A).
A Covered Person serving on the board of directors or scientific advisory board of an enterprise that provides financial support for University research when the Covered Person or a member of his or her Immediate Family may receive such financial support.
A Covered Person or a member of his or her Immediate Family having an equity or ownership interest in a publicly or non-publicly-traded entity or enterprise.
A Covered Person accepting support for University research under conditions that require research results to be held confidential, unpublished, or inordinately delayed in publication. Research conducted by faculty or students under any form of sponsorship must maintain the University’s open teaching and research philosophy and must adhere to a policy that prohibits secrecy in research. Such conditions on publication must be in compliance with UNC Policy Manual, 500.1 and 500.2, and with campus Intellectual Property policies.

Category III: Activities That Are Generally Not Allowable or Permitted Unless an Approved Conflict of Interest Management Plan is in Place

A Covered Person participating in University research involving a technology owned by or contractually obligated to (by license or an option to license, or otherwise) the Covered Person or to an enterprise or entity in which the Covered Person or a member of his or her Immediate Family has a consulting relationship, has an equity or ownership interest, or holds an Executive Position.
A Covered Person participating in University research that is funded by a grant or contract from an enterprise or entity in which the individual or a member of his or her Immediate Family has an equity or ownership interest.
A Covered Person assigning students, post-doctoral fellows or other trainees to University research projects sponsored by an enterprise or entity in which the individual or a member of his or her Immediate Family has an equity or ownership interest.

Category IV: Activities that are Not Allowable under Any Circumstances

A Covered Person making referrals of University business to an external enterprise in which the individual or a member of his or her Immediate Family has a financial interest.
A Covered Person associating his or her own name with the University in such a way as to profit financially by trading on the reputation or goodwill of the University.
A Covered Person making unauthorized use of privileged information acquired in connection with one’s University responsibilities.
A Covered Person signing agreements that assign University patent and other intellectual property rights to third parties without prior University approval.
Any activity otherwise prohibited by law or University policy.

Policy Implementation

The Chancellor has responsibility for overseeing the implementation of this Policy and the Procedures Supplemental to this Policy in all units, including the process and mechanism for conflict disclosure, evaluation, and management. The Vice Chancellor for Research and Economic Development shall have the authority to revise the Procedures Supplemental to this Policy, as appropriate.

Reporting Procedures

See: Procedures Supplemental to University Policy 102.2, Conflicts of Interest and Commitment

Instructions:

Download and open Attachment 1 using Microsoft Word.
Fill out Attachment 1 in Microsoft Word, save to your hard drive or network drive, then print out and submit to the Department Head. Updated forms must also be submitted throughout the year if changes arise. See section “Submission of Conflict Evaluation Forms“ in the Supplemental Procedures for more information.
If you answer “yes” to any question in Attachment 1 download and open using Microsoft Word the appropriate Appendix (Appendix A, Appendix B, Appendix C, and/or Appendix D). Fill out the Appendix, save to your hard drive or network drive, then print out and submit with Attachment 1.

Appendices

Appendix A - Report of Activities and Relationships with Enterprises Sponsoring University Activities or Doing Business with the University.

Appendix B - Report of Potential Conflicts of Interest Related to Students.

Appendix C - Report of Potential Conflicts of Interest Related to Course Materials and Presentations.

Appendix D– Report of PHS Disclosure Information

Revision History

Initially approved September 29, 1995
Revised June 30, 2003
Revised August 24, 2012

Authority: Chancellor

Responsible Office: Legal Affairs

Related Resources:

Procedures Supplemental to University Policy 102.2, Conflicts of Interest and Commitment

Attachment 1