Conflicts of Interest
(Endorsed by Faculty Senate 5/10/94; Endorsed by the P&S Council 5/5/94; amended and approved 11/7/95)
As a land-grant institution with a strong commitment to research and outreach,
Iowa State University and its employees have traditionally
interacted with government bodies, private companies and individuals
external to the institution. As interest grows in stimulating
technology transfer and encouraging economic development, the
number and types of external relationships will grow correspondingly.
The complexity of Iowa State's increasing interactions with
non-university entities confronts faculty and staff members
with a variety of issues and concerns. Central to these is
ensuring that all parties to an agreement are fully aware of
any personal or contractual relationships that might have relevance
to or compete with a particular project.
Principles
A conflict of interest may take
various forms but arises when a faculty or staff member
is or may be in a position to influence the university's
business, research, or other decisions in ways that could
lead to any form of personal gain for the faculty or staff
member or others closely associated with that university
employee.
Purpose
This policy is to provide a mechanism
for
- identifying conflicting
non-university relationships
- informing those with a
need to know about conflicting relationships through
disclosure
- taking remedial steps to
protect the interests of all concerned
Relationships
The nature of faculty and staff
relationships varies widely, so it is not possible to define
precisely and exhaustively all situations in which a potential
conflict of interest may arise. The following categories
do not constitute an exclusive listing, but they do represent
the most prevalent types of relationships.
- Consulting Activity.
It is common for faculty and staff members to serve as
consultants for non-university entities. Depending upon
the entity and the nature of the activity, consulting
may not cause any conflict of interest for a university
employee. Payment or a retainer for a consultant's time
and expertise is appropriate in many instances.
- Equity
Interest. University employees are free to own stock in private companies, and relatively
modest holdings are not a matter
of university concern. An employee
who holds equity in or stock options
which represent more than $10,000
or five percent of the total company
equity is considered to have an
equity interest in that company.
- Management
Role. A university employee may serve as a director, scientific director, board member,
or line officer or hold
another management position
in a company.
Assessment of Potential
Conflicts
A faculty or staff member's consulting
relationship with, equity interest in, or a management
role within a non-university entity does not necessarily
constitute a conflict of interest. A potential conflict
may arise, however, when such relationships interfere or
compete with one another or with an employee's relationship
to the university. Again, because of the variety of possible
combinations and complexities, it is not feasible to describe
all potentially conflicting situations. Therefore, the
following are to be viewed only as examples of relationships
that may require disclosure.
Consulting Activity. A potential for conflict arises when an individual seeks or is awarded a contract
for sponsored research through the same entity for which
paid consulting is being or has been done. Similarly, if
one person is serving as a consultant for two or more clients
who are themselves in competing or conflicting relationships,
then the potential for a conflict of interest does exist.
(See also the university's policy on consulting).
Equity Interest. As with consulting, the existence of an equity interest does not alone constitute
a conflict of interest. But if an employee with such an
interest is asked to consult for or is provided research
funding from that company or one of its competitors, then
the potential for a conflict of interest does exist.
Management Role. If the management role is directly related to research, marketing, or other
activities either for the university or for a competing
company, then the potential for a conflict of interest
does exist.
Multiple Interests or Roles. An individual faculty or staff member may simultaneously become involved in
consulting relationships, have equity holdings, and serve
as an officer in one or more companies. Each of these relationships
may well be independent of all the others and no conflict
among them may exist. The independence or interdependence
of such relationships may be difficult to assess, however,
unless the individual fully discloses the nature and extent
of the relationships.
Disclosure
All parties participating in
relationships involving university employees and non-university
entities should be fully aware of the nature of those relationships
if a potential for conflict exists. It is the responsibility of the individual who has entered into potentially conflicting
relationships to disclose to his or her department chair
or immediate supervisor the nature and degree of such relationships.
Two avenues for disclosure are
available:
- On a Gold Sheet.
Researchers who submit contract or grant proposal forms
(Gold Sheets) must indicate on those forms whether they
believe that the proposed activity will constitute a
conflict of interest. If they do so indicate, they must
inform DEOs or other immediate supervisors of the details
of the potential conflict. Disclosure is automatically
required if the ISU employee has an equity interest or
a management role in a company supporting research.
- Directly
to a Department Chair/Supervisor. If a faculty or staff member enters into an agreement to provide services such
as consulting with non-university
entities which do not normally
require a Gold Sheet, then any
necessary disclosures should be
made directly to the department
chair/immediate supervisor. Disclosure
is automatically required if the
ISU employee has an equity interest
or a management role in a company
involved in the consulting activity.
Form of the Disclosure.
A faculty or staff member may use the form included in
the Office Procedure Guide or write a memo addressed to
the department chair or immediate supervisor, defining
the nature and extent of any relationships and identifying
the entities with which the relationships exist. Documentation
such as a contract, letter, or other communication that
specifies the nature and extent of the university employee's
obligation and duties may be included as part of the disclosure.
Timing of the Disclosure. Disclosures should be made as early as possible to enable those reviewing them
to consider what action, if any, needs to be taken regarding
any potential conflicts of interest. At the latest, a disclosure
statement should accompany the submission of a contract
or grant proposal when it is submitted to a departmental
executive officer for his or her approval.
Review of Disclosures
Departmental Level. A
department chair is responsible for reviewing any disclosures
made. If, in his or her opinion, no potential or actual
conflict of interest exists, further review is unnecessary.
Where a potential or actual conflict exists, the department
chair must decide if it is serious enough to require intervention
or mediation. A department chair may choose to rely on
the advice of a departmental ad hoc peer review committee
to assist in the evaluation. Information contained in a
disclosure statement accompanying a proposal shall remain
confidential. If a contract or grant is awarded, however,
any relevant disclosures shall be made public and the contracting
or granting entity be informed. For employees not affiliated
with an academic department, the immediate supervisor serves
in place of a department chair as the reviewer of disclosures.
College Level. If a department chair is unable or unwilling to deal with the actual or potential
conflicts of interest that a disclosure reveals, then he
or she should forward the disclosure to the appropriate
college dean for review. As in the case of departmental
review, if a dean believes that no conflict of interest
exists, further review is unnecessary. Where a potential
or actual conflict exists, the dean should decide if it
is serious enough to require intervention or mediation.
A dean may choose to rely on the advice of a college-constituted
committee in reviewing disclosures. For employees not affiliated
with an academic department, the immediate supervisor may
forward disclosures to the administrator to whom he or
she reports.
University Level. If a dean or other administrator is unable or unwilling to deal with the actual
or potential conflicts of interest that a disclosure reveals,
then he or she should forward the disclosure to the provost
for review. The provost will seek advice from a university
committee constituted for that purpose to determine whether
a conflict of interest exists and is serious enough to
require intervention or mediation. For employees not affiliated
with an academic unit, the vice president to whom their
unit ultimately reports rather than the provost is responsible
for review at this level. If a conflict is deemed to be
unavoidable or unmanageable, the university Office of Sponsored
Programs Administration will notify the potential funding agency of the problem.
Appeal. If a faculty or staff member disagrees with a decision made at the departmental
or college level, he or she can request that the disclosure
be referred for review to the higher administrative level
as described above.
Special Cases
When the university engages in
activities with university-employee-owned companies, a
potential conflict of interest is possible in these relationships.
Board of Regents' policy requires prior approval from the
Regents before the university can make purchases from a
company owned by an employee or an employee's immediate
family. Oversight of research relationships with such companies
comes under the Conflict of Interest Policy and requires
special considerations.
The university encourages interested employees to engage in entrepreneurial
activities as a way of contributing to the economic development
of Iowa. Occasionally, an employee-owned company will wish
to establish a research relationship with the university
and its employees. The university is willing to work with
such companies on the same basis as work done with companies
not owned by university employees. To ensure that such
relationships do not harm either the university or its
employees, special oversight is required.
Research relationships with ISU employee-owned companies usually take one of
three forms:
- university research is
sponsored by the company
- the
company, in exchange for a fee, uses
university facilities and/or equipment
- the
company employs individuals
who are simultaneously
university graduate students
In Case 1,
a committee of technically knowledgeable but disinterested
faculty or staff is established by an administrator at
or above the level of dean. The committee will oversee
the integrity of the research and assure the university
that the work being done is that to which the university
agreed.
In Case 2, appropriate fees must be established by the department (unit) head responsible
for the facility and/or equipment and must be approved
by the Vice President for Business and Finance. Fees should
be reasonable and in line with those charged for use by
companies not involving ISU employees. A record of amount
of use shall be maintained.
In Case 3, the Program of Study committee and/or a committee named to oversee research
shall be notified of the potential conflict and the student's
work for the dissertation or thesis shall be monitored
to assure that the quality of the student's research and
graduate experience is not compromised by the connection
to the company. Generally, it is inadvisable for the student's
advisor to be the student's employer or supervisor in the
employee-owned company, but exceptions can be sought from
the department chair.
Remedies
At any point in the process of
reviewing disclosures, a department chair, dean, provost
or relevant nonacademic supervisor may conclude that remedial
steps should be taken to protect the interests of all parties
involved and to limit the negative impact of any unavoidable
conflicts of interest. Such remedies may include but are
not restricted to:
- An agreement signed by
all interested parties that none of them perceive a conflict
to exist.
- Public disclosure by the
university employee of the conflicting interests. For
example, a journal article or public presentation should
include a statement disclosing information about any
financial support, consulting fees or other payments
from any company which sponsored or supported the research
described or which might benefit from the results of
that research.
- An agreement by the university
employee a) to withdraw from any existing consulting
or management relationship which appears to conflict
with a new relationship or b) to sell or otherwise dispose
of any equity interest in conflicting enterprises.
- The negotiation of a suitable
leave of absence, reduction of appointment, or other
arrangements with the university which will reduce or
eliminate the conflict of interest as it relates to a
particular employee.
Sanctions
As noted above, disclosure is
the responsibility of the faculty or staff member who becomes
involved in activities that may be in conflict. Failure
to disclose those relationships is a serious matter which
may, in certain instances, be considered an act of academic
misconduct. Consequently, an allegation of a failure fully
to disclose a potential conflict of interest should be
brought to the attention of the university's Officer for
Research Standards. The ORS will handle the matter in accordance
with the Iowa State University "Policies and Procedures on Academic Misconduct Investigations." Employees who are not faculty members may be subject to the conduct policies
outlined in the Professional and Scientific Handbook.
