312.05 Conflict of Interest Policy
The
following
motion regarding the “Conflict of Interest” policy was approved by the Senate
Faculty Affairs Committee on November 16, 1999 and by the full University
Senate on March 23, 2000: We move that Version 2 of the
“Conflict of
Interest” policy be adopted by the Senate Faculty Affairs Committee and
forwarded to the Executive Committee to be recommended for University
policy
with the provision that until such time as each college/unit delineates
specific procedures, Version 1 of the policy will be in effect for that
college/unit.
1. PREAMBLE
Full-time faculty and staff of Georgia State
University (hereinafter referred to as the “University”) understand that their
primary contractual responsibility is to the University. To ensure the
integrity and objectivity of research and other scholarly activities, full-time
and part-time faculty and staff (hereinafter referred to as “employees”) must
not let outside financial interests interfere with or compromise their
obligations to the University. This policy is intended to increase the
awareness of employees to the potential for conflicts of financial interest,
and to establish procedures whereby such conflicts may be avoided or properly
managed. This is not intended to be a regulatory document to inhibit
professional activity or innovation but rather a disclosure and review policy
to provide support to employees while protecting the interests of the
University. This policy does not supplant the need to secure approval for
outside activities, as dictated by each college, but addresses issues of real
or apparent financial conflict.
Applicable laws, rules, regulations, and policies that
address conflicts of interest are outlined below.
1.1 State Law
Sales to Political Subdivision by Officers/Employees
O.C. G.A.
16-10-6 provides that it is a crime, punishable by imprisonment for one to five
years, for an employee or officer of a political subdivision or agency
thereof (e.g., the Board of Regents or University) to sell real or
personal property [including personal services] to certain political
subdivisions of the state, including the employing political subdivision
or an agency thereof. Certain exceptions are provided.
Transacting Business with the State
O.C. G.A. 45-10-20 through 45-10-28 provide that it is
unlawful for a state employee to transact business with the agency by which
that person is employed for himself, on behalf of a business in which the employee
or his spouse or dependents has a substantial interest, or on behalf of anyone
as agent, broker, dealer or representative. Transacting business is defined as
selling real property, personal property, or services, or purchasing surplus
real or personal property. Certain exceptions are provided.
Employees are required to file annual disclosure
statements of business transactions with any state agency except for
transactions in which the amount of a single transaction does not exceed
$250.00 and the aggregate of all transactions does not exceed $9,000.00 per
calendar year. The annual disclosure forms are available from the Department of
Legal Affairs and must be submitted by January 31 to the Secretary of State.
1.2 Board of Regents Policies
1.2 (a) Policy 802.16 states the following in
regard to outside activities:
An employee of the University System of Georgia should
avoid actual or apparent conflict of interests between his or her college or
university obligations and his or her outside activities.
1.2 (b) Policy 802.1602 states the following in
regard to consulting:
Recognizing that teaching, research and public service
are the primary responsibilities of faculty members in the University System of
Georgia, it shall be considered reasonable and desirable for faculty members to
engage in consulting activities, which are defined for purposes of this policy
as any additional activity beyond duties assigned by the institution,
professional in nature and based in the appropriate discipline for which the
individual receives additional compensation during the contract year.
Each unit of the University System shall adopt
guidelines governing consulting activities of faculty members which shall
include the following:
1. A plan for reimbursing the institution for use of
the institution’s personnel, facilities, equipment and/or materials consistent
with rates charged outside groups or persons.
2. A procedure for obtaining prior approval of the
president or his designee.
3. A procedure for defining and prohibiting conflicts
of interest.
As per the Board of Regent’s charge, the following
policy applies to all salaried employees and defines conflicts of interest,
articulates a procedure for obtaining prior approval for activities that may
present a conflict of financial interest, and specifies a plan for reimbursing
the institution when the institution’s personnel, facilities, equipment and/or
materials are used in consulting activities. This policy extends the BOR’s
charge and addresses situations, in addition to consulting, which may present
real or apparent conflicts of interest.
2. CONFLICT OF FINANCIAL INTEREST
2.1 Definition
A conflict of
financial interest exists when an employee’s direct or indirect financial interests
conflict with or compromise his or her employment responsibilities and affects or
provides an incentive to affect the employee’s conduct of his or her University
activities. Employees may not use their
institutional position or affiliation for personal gain, or for the benefit of
immediate family members (defined as parents, spouse and/or children), to the
detriment of the University. It is equally recognized that conflicts of
commitment pose as serious a threat to the reputation and operation of the
University as conflicts of financial interest. Conflicts of commitment
occur when an employee’s commitment to external activities, paid or unpaid,
adversely affect his or her capacity to meet University responsibilities. As
potentially serious as conflicts of commitment are, they are not addressed in
this policy. Rather, potential conflicts of commitment are disclosed in the
processes of securing approval for outside activities and during annual
performance evaluations. Additionally, this policy does not infringe on the
constitutional right to free speech.
For the
purposes of this policy, “employee” is anyone who receives an IRS W-2 form from
the University. “Significant financial interest” refers to 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, trademarks, copyrights and royalties from such rights). The
monetary value is considered significant if the employee and/or any member of
his or her immediate family owns shares whose total market value is greater
than $50,000 or if these shares represent an ownership interest of 5% or more.
The term does NOT include:
· salary, royalties
or other remuneration from the University
· income from
seminars, lectures, or teaching engagements sponsored by public or nonprofit
entities; or
· income from
services on advisory committees or review panels for public or nonprofit
entities.
The principles guarding against a conflict of
financial interest prohibit any employee from:
a) allowing direct or indirect financial interests to
affect the design, conduct or reporting of research or scholarly activity
b) allowing direct or indirect financial interests to
influence decisions which compromise the comport of University responsibilities
c) conducting business with the state, except as
expressly permitted by law
d) directly or knowingly asking, accepting, demanding,
extracting, soliciting, seeking, assigning or receiving anything of value for
himself or herself or for another person in return for being influenced in the
performance of University responsibilities
The purpose of this policy is to inform employees of
situations that may pose the potential for or appearance of conflicts of
financial interest. Employees assume personal responsibility for evaluating
their own situations and knowing when activities and interests need to be
disclosed. Employees need to disclose any activity for which they receive
remuneration in excess of $250.00 from a state agency (O.C.G.A. 45-10-20
through 45-10-28), more than $1,000 aggregate from non-state agency sources, or
that presents the possibility for a conflict of financial interest.
Appendix A contains examples of activities that would
presumptively not be allowed because they present a real conflict of
financial interest.
2.2
Potential Conflicts of Financial Interest
There are certain cases in which the appearance of
conflict of financial interest is present even when no financial conflict
actually exists. Such apparent conflicts can do almost as much damage as actual
ones, undermining the credibility of research and scholarship or of University
financial decisions and calling into question the integrity of an employee or
the University or both. For this reason, it is important for an employee, in
evaluating a potential conflict of financial interest, to consider how it might
be perceived by others. An appearance of conflict exists when a reasonable
person would conclude from the circumstances that the employee’s ability to act
in the University’s best interests or perform contractual obligations is
compromised by financial interests. The University may require employees to
desist from certain activities that create the appearance of a conflict of
interest. However, upon appropriate disclosure and review, any of the
activities which present the potential for a conflict of interest may be deemed
acceptable and not a conflict of interest.
Appendix B contains examples of activities that may,
but do not necessarily, result in conflicts of interest.
2.3 Assumed Non-Conflict
Activities that do not compromise the objectivity of
research results, the integrity of employee-student interactions, and other
interests of the University should not present the potential for a conflict of
financial interest. Although these activities may be outside the employee’s
commitments to the University, they do not need to be disclosed as per this
policy.
The following are examples of activities that are
assumed NOT to present a conflict of interest and do not need to be
disclosed under this policy. (Note: Some of the activities listed may need to
be disclosed under other University policies.)
2.3.A.
Earning passive income, including receiving royalties for published scholarly
works and other materials, investments, and so forth.
2.3.B.
Membership in and service to professional associations and learned societies;
public service; membership on professional review or advisory panels;
presentation of lectures, papers, concerts, or exhibits; participation in
seminars and conferences; reviewing or editing scholarly publications and
books; and service to accreditation bodies that are performed for nominal
honoraria or reimbursement of expenses are permitted, provided that the receipt
of nominal honoraria (less than $250.00 from a state agency or $1,000 from
another source) or reimbursement of expense is not in conflict with other
applicable University, state, or federal policy, rule, or regulation.
2.3.C.
Ownership of or equity in a corporation used solely for the employee’s
consulting activities.
2.3.D.
Requiring or recommending one’s own textbook or other teacher aids, materials,
software, equipment or the like to be used in connection with University
instructional programs, or texts, aids, materials, software, or equipment of a
member of his or her family.
2.4 Disclosure and Review
To effectively
prevent conflicts of financial interest or the appearance thereof, this policy
requires:
a)
disclosure to designated administrators of financial interests which might give
rise to conflicts, and
b) readily
available advice and counsel to employees and department/unit heads on any
conflict situation.
Disclosure and
permission to engage in the activity may resolve situations that involve the
appearance of or potential for conflict of financial interest. If necessary, at the beginning of
each academic year, employees should complete disclosure statements identifying
potential conflicts of interest (as described in Section 2.2), including but
not limited to participation in activities contained in Appendix B of this
document. It is acknowledged that faculty are charged with providing service to
their professions and disclosure forms do not need to be filed for honoraria
from an occasional lecture or from isolated, non-recurring activities that
result in payments which do not exceed $250* from a state agency or $1,000 from
another source during any calendar year. The
disclosure form should be supplemented during the year if potential conflicts
arise. Disclosure forms and Supplemental Disclosure forms can be filed in
written format or electronically. Electronic versions of the forms are
available from the GSU website. If the employee cannot disclose enough
information for the University to determine whether a conflict exists, then the
employee must forego the outside engagement.
Several
avenues exist for securing advice regarding potential conflicts of interest.
Department/ unit heads are responsible for informing employees within the
department/unit of the conflict of financial interest policies and procedures
and for reminding them to complete annual and supplemental disclosure forms.
Department/unit heads will advise employees in avoiding conflicts of interest
or situations that may adversely affect the university. If the department/unit
head needs clarification or another opinion, s/he should meet with the
appropriate dean/supervisor of the college, school or unit to discuss the
particular situation. Deans/supervisors may consult with the Department of
Legal Affairs in determining the existence or lack of conflict of interest. Additional advice
is available for employees from the Office of the Vice President for Research
and Sponsored Programs.
In situations
where an employee has been denied permission by the department head and dean to
engage in an activity or endeavor due to conflict of interest, s/he may appeal
through established procedures. Faculty utilize procedures outlined in the
“Faculty Appeals Procedures” and a copy may be obtained from the University
Senate and Staff Council Office. Staff utilize grievance procedures as outlined
in documents maintained by the Human Resources Department. Employees who do not
comply with the conflict of interest policy may be subject to sanctions or
other actions permitted by university policy, which shall be applied according
to the provisions of employment, academic responsibility, and tenure.
3.
REIMBURSEMENT OF THE UNIVERSITY
Arrangements for reimbursing the university must be
made prior to using the institution’s personnel, facilities, equipment and/or
materials for outside activities. The reimbursement plan will include costs
consistent with rates charged outside groups or persons.
Appendix A
The following are examples of activities that present
conflicts of financial interest and would presumptively not be allowed. Each of
these examples involves direct or indirect financial incentive to compromise an
employee’s conduct related to his or her University obligations. This list
of examples is not exhaustive; other situations that are not described can
present a conflict of interest.
2.1.A.
Participating in University research involving a technology owned by or
contractually obligated (by license, option, or otherwise) to a business from
which the employee or member of his or her family benefits financially,
excluding a consulting relationship.
2.1.B.
Assignment of students, postdoctoral fellows, or other trainees (in a situation
where the person(s) would not feel free to refuse) to University projects
sponsored by a for-profit or not-for-profit business in which the individual or
a member of his or her family has a significant financial interest.
2.1.C.
Assignment of students (in a situation where the student would not feel free to
refuse) to any consulting relationship of the employee that involves a
significant financial interest.
2.1.D.
Making referrals of University work to an external business or professional
office in which the employee or member of his or her family has a significant
financial interest.
2.1.E.
Associating one’s name or one’s work with an external activity in such a way as
to profit monetarily by trading on the reputation or good will of the
University or to imply sponsorship or endorsement by the University. Mere
identification of the University as the employer of the employee and of the
employee’s position at the University is permitted, provided that such
identification is not used in a manner that implies sponsorship or endorsement
by the University.
2.1.F.
Publishing or formally presenting results of research under University
auspices, or providing expert commentary on a subject, without simultaneously
disclosing any significant financial interest relating to such results or
subject.
2.1.G.
Unauthorized use of privileged information acquired in connection with one’s
University responsibilities. This does not apply to standard publication
activity.
2.1.H.
Influencing the negotiation of contracts between the University and an outside
organization with which the employee or family member has a significant
financial interest.
2.1.I. Receipt of gifts in violation
of the Executive Order available from the Office of Legal Affairs. The
Executive Order regarding ethics in government is also available from the state
government website.
Appendix B
The following examples may, but do not necessarily,
result in conflicts of interest. If the situations in these examples provide
direct or indirect financial benefit to and employee or his or her family,
there may be a conflict of interest. With appropriate disclosure and review,
the activities listed may be deemed to be free of conflict of interest. This
list of examples is not exhaustive; other situations that are not described
could present the potential for a conflict of interest.
2.2.A.
Using University resources, including letterhead, when engaging in outside
activities other than those that constitute an uncompensated service to the
employee’s profession. Use of the library for reference and research purposes
is permissible.
2.2.B.
Accepting salaried employment from other branches of the university system or
other state agencies while employed by the University. Exempt from
consideration are non-contract periods (e.g., summer, leaves of absence).
2.2.C. Receiving, through contract or grant, research
support under University auspices (whether in dollars or in kind) for research
from a business in which the employee or member of his or her family has a
significant financial interest, excluding a consulting relationship.
2.2.D.
Purchasing goods or services for the University from businesses in which the
employee or employee’s family members have an interest.
2.2.E.
Assuming an executive position or having a significant financial interest in a
for-profit business engaged in commercial or research activities in an area
related to the employee’s University responsibilities.
2.2.F. Obtaining
significant
financial benefit from the participation of University students in consulting
relationships.
2.2.G.
Influencing students to make decisions that could result in financial gain for
the employee.
2.2.H.
Providing consulting or testing services as a private venture if such services
are currently offered by the University for a fee, except to the extent that
such services constitute educational training.
2.2.I.
Engaging in business activities with outside parties who are competing against
the University for government or private funds.
2.2.J.
An employee shall recuse himself or herself from participation in any official
proceeding in which the employee’s impartiality might be questioned due to
personal or financial relationship with any participant in the proceeding.
Again, upon appropriate disclosure and review, any of these
activities may be deemed acceptable and not a conflict of interest.
1. PREAMBLE
Full-time faculty and staff of Georgia State
University (hereinafter referred to as the "University") understand that
their
primary contractual responsibility is to the University. To ensure the
integrity and objectivity of research and other scholarly activities, full-time
and part-time faculty and staff (hereinafter referred to as "employees")
must
not let outside interests interfere with or compromise their obligations to the
University. This policy is intended to increase the awareness of employees to
the potential for conflicts of interest, and to establish procedures whereby
such conflicts may be avoided or properly managed. This is not intended to
be a regulatory document to inhibit professional activity or innovation but
rather a disclosure and review policy to provide support to employees while
protecting the interests of the University. This policy does not supplant
the need to secure approval for outside activities, as dictated by each
college, but addresses issues of real or apparent conflict.
Applicable laws, rules, regulations, and policies that
address conflicts of interest are outlined below.
1.1 State Law
Sales to Political Subdivision by Officers/Employees
O.C. G.A.
16-10-6 provides that it is a crime, punishable by imprisonment for one to five
years, for an employee or officer of a political subdivision or agency
thereof (e.g., the Board of
Regents or University) to sell real or personal property [including personal
services] to certain political subdivisions of the state, including the
employing political subdivision or an agency thereof. Certain exceptions
are provided.
Transacting Business with the State
O.C. G.A. 45-10-20 through 45-10-28 provide that it is
unlawful for a state employee to transact business with the agency by which
that person is employed for himself, on behalf of a business in which the
employee or his spouse or dependents has a substantial interest, or on behalf
of anyone as agent, broker, dealer or representative. Transacting business is
defined as selling real property, personal property, or services, or purchasing
surplus real or personal property. Certain exceptions are provided.
Employees are required to file annual disclosure
statements of business transactions with any state agency except for
transactions in which the amount of a single transaction does not exceed
$250.00 and the aggregate of all transactions does not exceed $9,000.00 per
calendar year. The annual disclosure forms are available from the Department of
Legal Affairs and must be submitted by January 31 to the Secretary of State.
1.2 Board of Regents Policies
1.2 (a) Policy 802.16 states the following in
regard to outside activities:
An employee of the University System of Georgia should
avoid actual or apparent conflict of interests between his or her college or
university obligations and his or her outside activities.
1.2 (b) Policy 802.1602 states the following in
regard to consulting:
Recognizing that teaching, research and public service
are the primary responsibilities of faculty members in the University System of
Georgia, it shall be considered reasonable and desirable for faculty members to
engage in consulting activities, which are defined for purposes of this policy
as any additional activity beyond duties assigned by the institution,
professional in nature and based in the appropriate discipline for which the
individual receives additional compensation during the contract year.
Each unit of the University System shall adopt
guidelines governing consulting activities of faculty members which shall
include the following:
1. A plan for reimbursing the institution for use of
the institution’s personnel, facilities, equipment and/or materials consistent
with rates charged outside groups or persons.
2. A procedure for obtaining prior approval of the
president or his designee.
3. A procedure for defining and prohibiting conflicts
of interest.
As per the Board of Regent’s charge, the following
policy applies to all salaried employees and defines conflict of interest,
charges each unit within the University to develop a procedure for obtaining
prior approval for activities that may present a conflict of interest, and
specifies a plan for reimbursing the institution when the institution’s
personnel, facilities, equipment and/or materials are used in consulting
activities. This policy extends the BOR’s charge to address situations, in
addition to consulting, which may present real or apparent conflicts of
interest.
2. CONFLICT OF INTEREST
2.1 Definition
A conflict of
interest exists when an employee’s interests or commitments conflict with or
compromise his or her employment responsibilities and affects or provides an
incentive to affect the employee’s conduct of his or her University activities.
Conflicts of commitment occur when a commitment to external activities
adversely affects the employee’s capacity to meet University responsibilities.
Each unit is responsible for developing a process to address potential and
actual conflicts of commitment. Financial conflicts occur when an employee’s
direct or indirect financial interests compromise or influence his or her
University performance. Employees may
not use their institutional position or affiliation for personal gain, or for
the benefit of immediate family members (defined as parents, spouse and/or
children), to the detriment of the University. This policy does not infringe
on the constitutional right to free speech.
The principles guarding against a conflict of interest
prohibit any employee from:
a) allowing direct or indirect financial interests to
affect the design, conduct or reporting of research or scholarly activity
b) allowing direct or indirect financial interests to
influence decisions which compromise the comport of University responsibilities
c) conducting business with the state, except as
expressly permitted by law
d) directly or knowingly asking, accepting, demanding,
extracting, soliciting, seeking, assigning or receiving anything of value for
himself or herself or for another person in return for being influenced in the
performance of University responsibilities
2.2
Potential Conflicts of Interest
There are certain cases in which the appearance of
conflict of interest is present even when no conflict actually exists. Such
apparent conflicts can do almost as much damage as actual ones, undermining the
credibility of research and scholarship or calling into question the integrity
of an employee or the University or both. For this reason, it is important for
an employee, in evaluating a potential conflict of interest, to consider how it
might be perceived by others. An appearance of conflict exists when a
reasonable person would conclude from the circumstances that the employee’s
ability to act in the University’s best interests or perform contractual
obligations is compromised. The University may require employees to desist from
certain activities that create the appearance of a conflict of interest.
However, upon appropriate disclosure and review, activities which present
the potential for a conflict of interest may be deemed acceptable and not a
conflict of interest.
2.3 Assumed Non-Conflict
Activities that do not compromise the objectivity of
research results, the integrity of employee-student interactions, and other
interests of the University should not present the potential for a conflict of
interest. Although these activities may be outside the employee’s commitments
to the University, they do not usually present a conflict of interest.
The following are examples of activities that are
assumed NOT to present a conflict of interest:
2.3.A.
Earning passive income, including receiving royalties for published scholarly works
and other materials, interest investments, and so forth.
2.3.B.
Membership in and service to professional associations and learned societies;
public service; membership on professional review or advisory panels;
presentation of lectures, papers, concerts, or exhibits; participation in
seminars and conferences; reviewing or editing scholarly publications and
books; and service to accreditation bodies are permitted so long as they do not
conflict or interfere with the timely performance of primary University duties.
These activities are permitted even if they are performed for nominal honoraria
or reimbursement of expenses, provided that the receipt of nominal honoraria or
reimbursement of expense is not in conflict with other applicable University, state,
or federal policy, rule, or regulation.
2.3.C.
Ownership of or equity in a corporation used solely for the employee’s
consulting activities.
2.3.D.
Requiring or recommending one’s own textbook or other teacher aids, materials,
software, equipment or the like to be used in connection with University
instructional programs, or texts, aids, materials, software, or equipment of a
member of his or her family.
2.4
Disclosure and Review
To effectively
prevent conflicts of interest or the appearance thereof, this policy requires:
a)
disclosure to designated administrators of interests and activities which might
give rise to conflicts, and
b) readily
available advice and counsel to employees and department/unit heads on any
conflict situation.
The purpose of disclosure is to ensure that no
unresolved conflict exists between an employee’s primary University commitments
and his or her outside interests and activities. Disclosure is not intended to
inhibit professional activities, but to inform administrators (i.e.,
department/unit heads, deans/supervisors or the Provost) of the facts necessary
to determine if a potential conflict exists so that they may resolve the
problem. Disclosure and review may
resolve situations that involve the appearance of or potential for conflicts of
interest. Each unit within the university is charged with developing a
procedure for disclosure and review. The conflict of interest policy developed by
each unit must be reviewed by the faculty/staff of the unit, by the dean or
administrative head of the unit, and by the provost of the university. Procedures developed may utilize mechanisms already
in place in the unit, such as those related to disclosure of outside
activities. Consultation with the Department of Legal Affairs may be useful in
determining the existence or lack of conflict of interest. Additional advice
is available for employees from the Office of the Vice President for Research
and Sponsored Programs.
In situations
where an employee has been denied permission by the unit head and dean to
engage in an activity or endeavor due to conflict of interest, s/he may appeal
through established procedures. Faculty utilize procedures outlined in the
“Faculty Appeals Procedures” and a copy may be obtained from the University
Senate and Staff Council Office. Staff utilize grievance procedures as outlined
in documents maintained by the Human Resources Department. Employees who do not
comply with the conflict of interest policy may be subject to sanctions or
other actions permitted by university policy, which shall be applied according
to the provisions of employment, academic responsibility, and tenure.
3.
REIMBURSEMENT OF THE UNIVERSITY
Arrangements for reimbursing the university must be
made prior to using the institution’s personnel, facilities, equipment and/or
materials for outside activities. The reimbursement plan will include costs
consistent with rates charged outside groups or persons.