Conflicts of Interest and Commitment

Policy governing conflicts of interest and commitment at Iowa State University is found in the Iowa State University Policy Library.

Conflicts of interest and commitment, or perceptions of conflicts of interest and commitment, can occur in a variety of forms. These pages are devoted to the management of situations that can arise when university employees have any external activity, significant financial interest, or management role that has the potential to:

• negatively impact objectivity in the execution of university duties (a “conflict of interest”), or
• reduce the time and attention an employee can devote to their university responsibilities, and thus negatively impact their performance or assigned university duties (a “conflict of commitment”)

These conflicts are a normal part of an active and vibrant university. With the increasing emphasis of universities on outreach and economic development, more university personnel are becoming involved with external entities or starting their own companies. The university strongly encourages these activities. However, they bring with them conflicts of interest and commitment or perceptions of conflicts of interest and commitment that need management to avoid harm to the persons or entities involved.

The negative impacts of unmanaged or inadequately managed conflicts of interest and commitment or perceived conflicts of interest and commitment can include:

1. The use or perception of use of state resources for personal benefit or the benefit of immediate family members
2. The use or perception of use of the employee's university position to influence university business in a way that benefits one's self or immediate family members
3. Confusion in the ownership of intellectual property
4. Questions about the integrity of one's university research or scholarly activity
5. Harm to vulnerable populations, such as graduate students and research subjects

Perceived conflicts of interest and commitment can be as harmful as real conflicts of interest and commitment. The university manages both by the disclosure of the conflict (or perceived conflict) followed by the creation of a Conflict of Interest Management Plan that specifies how the individual will keep their non-university activities from causing harm.

Disclosure and management are needed whether the non-university relationship is with a for-profit entity, a not-for-profit entity, or a charitable foundation. For example, it is a conflict of interest for a researcher to accept a grant from a non-profit foundation in which they have a management role. It is also a conflict of interest to accept grant funds from an external entity for which one consults.

All university employees are required to disclose potential conflicts of interest and commitment whether they think they have a conflict or not. The disclosures must be made prior to initiating the activity, annually, and whenever the employee’s situation changes. The appropriate method of disclosure varies with the type of activity as described in the Procedures, applications, and guidance document (PDF).

The information disclosed will be forwarded to the individual's department chair/school director/unit director, and then to representatives of the Office of the Senior Vice President and Provost to evaluate the situation. If a conflict of interest is possible, they will contact the individual to arrange further discussions and, if needed, develop an appropriate Conflict of Interest Management Plan.

Consulting tips for Iowa State faculty and staff were developed jointly by the Office of General Counsel, the Office of Research Ethics, the Vice President for Research, and the Office of the Senior Vice President and Provost.

Consulting tips for ISU faculty and staff

Private consulting by faculty and staff on topics related to their university duties is often beneficial to the university, to the employee, and to the public. However, it is important to manage any real or perceived conflicts of interest for such activities. Disclosure to the respective department chair/school director/supervisor prior to engaging in the consulting activity is required. The Iowa State Conflicts of Interest and Commitment Policy provides guidance on disclosure and approval of consulting activity, and practical applications may be found in the Procedures, applications and guidance document (PDF) that accompanies the policy.

In addition, any employee who is asked to sign a consulting agreement is encouraged to use the attached addendum (PDF). The addendum will help the entity with whom you are consulting understand your limitations and assist you to avoid creating conflicts with your university obligations, particularly those listed in the paragraphs below. The addendum, however, does not address all legal and financial issues in the consulting agreement that may impact you. You may wish to have a personal legal or tax advisor review your consulting arrangements.

If you plan to engage in private consulting, refer to the tips below – as a reminder of Iowa State policy or State law.

Use of university facilities, equipment, and e-mail

• Facilities and equipment—University facilities and equipment may not be used for private consulting activities unless you pay the university for such use at the same rate established by the Controller’s Office for use by other external entities. You should discuss such usage with your department chair/school director/supervisor and obtain written permission to use the facilities and equipment. Do not just use equipment in your lab.
• E-mail/phones/computers—Even though our policies allow incidental use of university e-mail/phones/computers for personal use, public records law may require disclosure of your private consulting records if you have stored such records on university equipment. A best practice is to store your consulting data off of university facilities and equipment, including e-mail accounts. The use of a university email address creates confusion whether the work is being supported by the university.
• Office/mail address: Use an address other than the university address for consulting. Public employees should not be delivering private mail. The use of a university address creates confusion whether the work is being supported by the university. It is o.k. to list an address at the ISU Research Park or other recognized incubator facility if you lease space there for your consulting activities.

Use of students

• Mixing a teaching or mentoring role with private remunerated activity is dangerous. Often the obligations of private work, such as confidentiality, time demands and the like, conflict with assuring that students make progress in their academic programs.
• At the risk of stating the obvious: Students on stipend cannot be assigned to private consulting work. This amounts to a use of university funds for private benefit.
• Similarly, students in your classes should not be required to go on private consulting trips with you. It can look like an abuse of your authority as an instructor.

Intellectual property

• Many consulting contracts include a clause transferring your intellectual property to the contracting entity. Such clauses have been known to be so broad as to transfer rights to your university work to the entity. Signing such a clause could result in your being in breach of university policy; of federal or private sponsored contract obligations; and of the consulting contract. You could also lose the right to continue your university research.

Use of name and position

• While it is a fact that you are employed by Iowa State, those who contract for your services often want to trade on Iowa State’s name and reputation in the form of a statement of actual or implied endorsement by Iowa State.
• The Faculty Handbook, 7.1.2 states: “When they [Faculty] speak or act as private persons, they avoid creating the impression of speaking or acting for their college or university.” Any time there is publicity about private consulting work, you should be careful to eliminate any implied endorsement of the product or the work by the university and include a disclaimer that indicates that the university was not involved in the research. A disclaimer is especially important if your affiliation with Iowa State is mentioned.

Liability

• Realize it is your personal liability: The State cannot provide liability protection. There are often insurance clauses in consulting contracts. Again: The state provides no coverage.

Leave time

• Professional Activity Leave (PAL) (paid leave) may be granted with the permission of your department chair/school director/supervisor if you can establish a benefit to the university and you can still fulfill all of your university responsibilities. But for any controversial activity, you and the university will be better off if you do not use PAL.

Refer to Consulting tips for ISU faculty and staff (PDF), including the Addendum to consulting agreement between ("company") and ("consultant") [PDF].

For questions or more information, please call the Office of Research Ethics, 515-294-7793.

It is the responsibility of every covered employee, as defined by the COIC Policy, to disclose conflicts of interest and commitment, whether or not the employee thinks the situation requires management and whether or not a management plan is already in place. Employees shall disclose electronically via IRBManager at the beginning of employment and thereafter annually beginning January 1 (with a target completion of March 31), and whenever the employee’s situation changes.

Why manage conflicts of interest and commitment?

Conflicts of interest and commitment, if not properly managed, can hurt the employee, the university, the state, and the public in general. Below are examples of some of the undesirable outcomes of the failure to disclose and/or adequately manage conflicts of interest and commitment. The examples are not all inclusive.

• The use or the perception of use of state resources for personal benefit or the benefit of immediate family members. This may occur when, for example:
  • A person's business or business activities share space or equipment with or are in close proximity to a person's departmental or center facilities
  • A person gives/receives an ISU grant, contract, subcontract, or purchase order to/from a family member's company, whether for-profit or not-for-profit
  • A person gives/receives (or appears to give/receive) an ISU grant, contract, subcontract, or purchase order to/from theirself
• The use or perception of use of the employee's university position to influence university business in a way that benefits one's self or immediate family members. This may occur when, for example:
  • A person's (or immediate family member's) business creates a widget, a computer program, or other item of value that the university wants and the person is in a position to influence the decision to purchase the item
  • A person is in a position to decide who will be the recipient of a grant, contract, subcontract, or purchase order and one of the possibilities is that person or an immediate family member
• Confusion in the ownership of intellectual property. This may occur when, for example:
  • A person's business's research activities are closely related conceptually to their university research activities
  • A person's business activities share space, equipment, or personnel with their university activities
  • A person signs a consulting contract with a company and the contract specifies that all information provided by the consultant belongs to the company
• Questions about the integrity of an employee's university research. This may occur when, for example:
  • A person, the person's family, or close associates stand to gain financially depending on the outcomes of the person's university research
  • A university stands to gain financially depending on the outcome of university research
• Harm to vulnerable populations, such as graduate students and research subjects. This may occur when, for example:
  • A graduate student conducts their masters or doctoral research in the major professor's company
  • A researcher stands to profit financially depending on the results of their clinical research
  • A researcher consults for a company that sponsors their clinical research

Management plans

ISU policy and federal regulations require the development of written Conflict of Interest Management Plans whenever real or perceived conflicts of interest are identified. Because all conflict of interest situations are unique, the content of these plans varies. Conflict of Interest Management Plans are developed by a Conflict of Interest Management Committee in consultation with the persons involved. The plans must be reviewed and renewed yearly as long as the person is an ISU employee and the conflict of interest situation exists.

A "conflict of interest" in a university setting generally refers to situations in which the external interests of a university employee have the potential to influence their decisions in their university role. The influence is generally in ways that could lead to personal gain (financial or non-financial) for the individual or immediate family members.

A "conflict of commitment" in a university setting generally refers to situations in which the external activity of a university employee has the potential to reduce the time and attention the employee can devote to their university responsibilities, and thus negatively impact their performance or assigned university duties.

Examples (PDF) are provided for the following types of conflict of interest and commitment:

• Research and other scholarly activities
• Sponsored funding
• Consulting
• Procurement
• Extension and outreach
• Employment (nepotism)

These examples are intended to give an idea of the range of situations that might occur. They are not inclusive of all possible situations that could be or could be perceived to be conflicts of interest and commitment.

Take this quick true-or-false test to get a feel for how well you understand conflicts of interest and commitment.

1. Conflicts of interest and commitment are common in vibrant, engaged universities.
2. The first step in managing conflicts of interest and commitment is disclosure.
3. Once an individual has disclosed a conflict of interest and commitment, they do not need to be concerned about managing it.
4. Potential conflicts of interest and commitment must be disclosed annually, at first employment, and whenever the employee's situation changes.
5. Perceived conflicts of interest and commitment can be as damaging as real conflicts of interest and commitment and therefore must be managed.
6. Conflicts of interest and commitment situations with not-for-profit entities are harmless and thus do not need to be managed.
7. Because of the potential harm to students, when a faculty member starts or acquires a significant interest in a company, the university prohibits them from serving as a major professor to students who work in that company.

Answers:

1. True
2. True
3. False
4. True
5. True
6. False
7. True

• Conflict of Interest of Public Officers and Employees -- Gifts
• Conflict of Interest Policy -- Duty of Loyalty
• Conflict of Interest Policy -- Sales and Purchases and Prohibited Interest in Public Contracts

• Iowa Code Section 68B.2A - Conflicts of Interest - Outside Employment and Activities
• Iowa Code Section 68B.3 - Conflict of Interest - Sale by State Employee of Goods or Services to State Agency
• Iowa Code Section 68B.22 - Conflicts of Interest - Iowa Gift Law
• Iowa Code Chapter 71 - Nepotism
• Click on Iowa Code to link to the state of Iowa Quick Search. Then, type in the section of the Iowa Code that you want to locate, i.e. 68B.2A.