Conflicts of Interest and Commitment Policy

situations in which financial or other personal considerations, circumstances, or relationships may compromise, may involve the potential for compromising, or may have the appearance of compromising, a Covered Individual’s objectivity in fulfilling his or her university duties or responsibilities, including research, service and teaching activities and administrative duties. The bias that such conflicts may impart can affect many university responsibilities, including but not limited to decisions about personnel, the purchase of equipment and other supplies, the selection of instructional materials for classroom use, the collection, analysis and interpretation of data, the sharing of research results, the choice of research protocols, the use of statistical methods, and the assessment of student work. A Covered Individual may have a conflict of interest when he or she, or any member of the Covered Individual’s Immediate Family, has a personal Financial Interest in an activity that may affect decision making with respect to his or her University Employment Responsibilities. While a Conflict of Interest may result from nonfinancial interests or considerations, the overwhelming majority of Conflicts of Interest result from a Financial Interest of a Covered Individual who is in a position to make a supervisory, academic, or administrative decision which may be compromised because of the potential for personal financial gain.

any faculty, or any EHRA non-faculty employee, including employees who are on research leave or any employees of a University-Associated Entity. Faculty or EHRA non-faculty employees on leave of absence are covered by the components of this policy that pertain to conflict of interest only. This policy shall also apply to former faculty and EHRA non-faculty employees with respect to activities that occurred while they were employed at the University.  In the context of research, the content of this policy pertaining to conflict of interest also applies to SHRA employees, students, collaborators or consultants who have a role in determining the design, conduct, or reporting of research.   

activities that are 1) undertaken for compensation outside the University; 2) performed for any entity, public or private, other than the university; 3) based upon the professional knowledge, experience and abilities for which the Covered Individual is employed by the University; and 4) is not included within a Covered Individual’s employment responsibilities

1. Payment for services to the Covered Individual not otherwise defined as institutional salary, including royalties (including royalties paid to Covered Individual or Covered Individual’s Immediate Family), or consulting fees and honoraria (except as excluded below) received by a Covered Individual or Covered Individual’s Immediate Family in the twelve months preceding the disclosure or anticipated in the twelve months following disclosure;
2. Equity or other ownership interest in publicly or non-publicly traded entities (e.g. stock, stock options, or other ownership interest) held by the Covered Individual or Covered Individual’s Immediate Family in the twelve months preceding disclosure or anticipated in the twelve months following disclosure;
3. Intellectual property rights and interests (including inventorship) held by the Covered Individual or Covered Individual’s Immediate Family in the twelve months preceding disclosure or anticipated in the twelve months following disclosure; and
4. Gifts that have been made to the University for the direct benefit of the research or other professional activities of a Covered Individual in the twelve months preceding disclosure or anticipated in the twelve months following disclosure.

Any use of University-funded or supported resources, including but not limited to University facilities, administrative offices, work product, research results, materials, property records, or information developed with University funding or other University support except as otherwise allowed by University policy, for any purpose other than the Covered Individual’s University Primary or Secondary Employment Duties. A Covered Individual engaged in external professional activities for pay may not use any such University-funded or supported resources in the course and conduct of externally compensated activities, except as allowed by university policies (see Acceptable Use of Computing and Electronic Resources and Request for Use of University Buildings or University Property). Under no circumstances may a Covered Individual use the services of another University employee during that employee’s University work hours to advance the Covered Individual’s personal, non-University related interests.

1. The National Science Foundation Investigator Disclosure Policy, 60 F.R. 132, pp. 35810-823 (July 11, 1995) (https://www.gpo.gov/fdsys/pkg/FR-1995-07-11/pdf/95-16799.pdf)
2. The Department of Health and Human Services Objectivity in Research Rules, Subpart F – Responsibility of Applicants for Promoting Objectivity in Research for Which PHS Funding is Sought, 42 C.F.R., Part 50, Subpart F (https://www.ecfr.gov/cgi-bin/text-idx?rgn=div5&node=42:1.0.1.4.23#sp42.1.50.f )

1. The North Carolina Criminal Self Dealing Statute (N.C.G.S. 14-234) 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 goods to the state.
2. Under the North Carolina State Government Ethics Act (N.C.G.S. 138A), state employees who have contracting responsibilities are prohibited from accepting gifts (other than honoraria or other items of nominal value) from contractors doing business or seeking to do business with the State.

1. Conflicts of Interest and Commitment Affecting Faculty and Non-Faculty EHRA Employees (UNC Policy Manual 300.2.2)
2. Guidelines on Implementing the UNC Conflict of Interest and Commitment Policy (UNC Policy Manual 300.2.2[G])
3. Regulations on External Professional Activities for Pay by Faculty and EHRA Non-Faculty Employees (UNC Policy Manual 300.3.3.1[R])
4. Regulations for Senior Academic and Administrative Officers on External Professional Activities for Pay and Honoraria (UNC Policy Manual 300.2.2.2[R])

Participation of Covered Individuals in External Professional Activities for Pay, typically in the form of consulting, is an important characteristic of academic employment that often leads to significant societal benefits, including economic development through technology transfer. However, External Professional Activities for Pay are to be undertaken only if they do not:

1. Create a Conflict of Commitment by interfering with the obligation of the individual to carry out all University Employment Responsibilities in a timely and effective manner;
2. Create an unmanageable Conflict of Interest;
3. Involve Inappropriate Use of University Resources;
4. Make any use of the name or marks of the University of North Carolina at Greensboro for any purpose other than professional identification; or
5. Claim, explicitly or implicitly, any institutional responsibility for the conduct or outcome of the External Professional Activities for Pay.

Additional circumstances sometimes associated with External Professional Activities for Pay may require special consideration.  These include:

1. In those instances when State-reimbursed travel, work time, or resources are used or when the activity can be construed as related to the Covered Individual’s University Employment Responsibilities on behalf of the State, the Covered Individual shall not receive any financial consideration, including an honorarium. In these instances, the Covered Individual may request that the honorarium be paid to the university. The honorarium may be retained by the Covered Individual only for activities performed outside of working hours, as defined by the university, or while the employee is on earned paid or annual leave, and all expenses are the responsibility of the employee or a third party that is not a State entity. In addition, senior academic and administrative officers may also be subject to special regulations regarding honoraria which require leave to be taken when External Professional Activities for Pay will take place during the regular work week. Please refer to the University Policy on External Professional Activities for Pay by Faculty and EHRA Non-Faculty Employees.
2. External Professional Activities for Pay performed for another UNC Constituent Institution or agency of the State of North Carolina also must comply with applicable State policies governing dual employment and compensation, unless an exception to those State policies is expressly authorized by the Chancellor or the President.
3. The Board of Governors has also established rules for monitoring and regulating the involvement of University employees in political candidacy and office-holding that could interfere with full-time commitment to University duties. Please refer to UNC Policy Manual, 5.1 et seq. for specific policy details.

The University of North Carolina at Greensboro Policy on External Professional Activities for Pay by Faculty and EHRA Non-Faculty Employees provides additional details regarding the application of this policy and UNC Policy 300.2.2.1[R].  Specifically, it contains provisions established to monitor possible Conflicts of Commitment, including mandatory pre-approval at appropriate university levels of External Professional Activities for Pay. A Covered Individual who wishes to engage in External Professional Activities for Pay must adhere to these regulations to provide satisfactory assurances that the activity will not interfere with University Employment Responsibilities. The regulations regarding mandatory pre-approval do not apply to faculty and non-faculty EHRA employees serving on academic year (9-month) contracts, if the External Professional Activity for Pay is wholly performed and completed outside of the contract service period (i.e., summer months), the activity does not otherwise conflict with the policies of the University of North Carolina at Greensboro or the UNC Board of Governors, and the activity is not conducted concurrently with a contract service period for teaching, research, or other services to the institution during a summer session.

A select list of activities conducted under specific circumstances is exempt from the mandatory pre-approval process .  This information can be found in the UNC Greensboro Policy on External Professional Activities for Pay by Faculty and EHRA Non-faculty Employees.

External Activities for Pay not involving the professional knowledge, experience and abilities for which the Covered Individual is employed at the university (i.e., non-professional activities that are part of an employee’s private life) are not subject to the advance disclosure and approval requirements of this policy. As with all activities for pay outside of the university, however, consideration should be given to whether they could generate a Conflict of Interest, or the appearance of such.

The examples cited below involve activities external to university employment, and thus may present the appearance of a Financial Conflict of Interest, but have little or no potential for affecting the objectivity of the Covered Individual’s performance of University Employment Responsibilities. At most, some such situations could prompt questions about Conflicts of Commitment.

• Receiving royalties for published scholarly works and other writing, or other royalties paid to the Covered Individual by the University.
• Receiving honoraria or expense reimbursement for a secondary University Employment Responsibility, such as service to a professional association, service on a review panel, or participation in accreditation reviews.

The examples cited below suggest a possibility of conflicting interests that can impair objectivity, but disclosure and resulting analysis of relationships may render the activity permissible and may result in the establishment of an approved management plan.

• A Covered Individual requiring students to purchase the textbook or related instructional materials of the employee or members of his or her immediate family, which produces compensation for the employee or family member.
• A Covered Individual 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 N.C.G.S. 14-234 and N.C.G.S 138A).
• A Covered Individual serving on the board of directors or scientific advisory board of an enterprise that provides financial support for University research and the employee or a member of his or her immediate family may receive such financial support.
• A Covered Individual or a member of his/her immediate family having a Financial Interest in a publicly or non-publicly-traded entity or enterprise.
• Covered Individual 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 1 and 500.2, and with campus Intellectual Property policies

The examples cited below involve situations that are not generally permissible, because they involve potential Financial Conflicts of Interest that present obvious opportunities or inducements to favor personal interests over institutional interests. Before proceeding with such an endeavor, the University must approve a management plan that would protect against bias and otherwise protect the University’s interests.

• A Covered Individual participating in University research involving a technology owned by or contractually obligated to (by license or an option to license, or otherwise) an enterprise or entity in which the Covered Individual or Covered Individual’s Immediate Family has a consulting relationship, has an equity or ownership interest, or holds an executive position.
• A Covered Individual participating in University research which is funded by a grant or contract from an enterprise or entity in which the Covered Individual or Covered Individual’s Immediate Family has an equity or ownership interest.
• A Covered Individual assigning students, post-doctoral fellows or other trainees to University research projects sponsored by an enterprise or entity in which the Covered Individual or Covered Individual’s Immediate Family has a Financial Interest.

• A Covered Individual making referrals of University business to an external enterprise in which the Covered Individual or Covered Individual’s Immediate Family has a Financial Interest.
• A Covered Individual 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 Individual making unauthorized use of privileged information acquired in connection with one’s University responsibilities.
• A Covered Individual signing agreements that assign University patent, copyright or other intellectual property rights, pursuant to applicable University policies, to third parties without prior University approval.
• Any activity otherwise prohibited by law or University policy

 In most situations, it is possible to mitigate the risk associated with conflicts of interest by introducing a structure of checks and balances via a management plan. Detailed procedures for the review and management of potential conflicts of interest are found in the University of North Carolina at Greensboro Procedures for the Disclosure, Review, and Management of Activities Involving Potential Conflicts of Interest. 

Covered Individuals have several responsibilities for understanding, disclosing, and managing Conflicts of Interest or Conflicts of Commitment pursuant to Federal, State, and local regulations. 

The University will maintain an up-to-date, written policy and process for identifying and managing Financial Conflicts of Interest.

The University will keep the campus community informed of the policies and procedures related to Conflict of Interest and will make every effort to provide accessible and timely professional development related to the topic.

The University will monitor and enforce implementation of Conflict of Interest policies and procedures.

With regard to projects for which funding is sought or received from the Public Health Service, the University will a) promote and enforce compliance with the requirements of 42 C.F.R., Part 50, including those pertaining to disclosure and management of financial conflicts of interests and reporting to the PHS awarding component regarding initial and ongoing conflicts; b) make information available to the HHS, promptly upon request, regarding any investigator’s disclosure of financial interests and the University’s review off, and response to, such disclosure, whether or not the disclosure resulted in a determination that a conflict of interest exists; and c) fully comply with the requirements of 42 C.F.R., Part 50.

In accordance with Public Health Service regulations, the following information will be provided: (a) Project Number, (b) Name of the Investigator with a Conflicted Interest, (c) Investigator’s title and role with respect to the Public Health Service research project, and (d) Nature of the financial interest (e.g. equity, consulting fee, travel reimbursement, honorarium); and Value of the financial interest (in ranges), or a statement that the interest is one whose valued cannot be readily determined through reference to public prices or other reasonable measure of fair market value.

Disclosures of activities and information related to External Professional Activities for Pay, Conflict of Commitment, and Conflict of Interest may be confidential records pursuant to N.C.G.S. 126-22 (Privacy of State Employee Personnel Records).

The Chancellor has delegated authority for administration of this policy as it related to Conflict of Interest to the Director of Research Integrity.

The Chancellor has delegated authority for administration of this policy as it relates to Conflict of Commitment to the Provost and Executive Vice Chancellor for Academic Affairs (faculty), and for EHRA non-faculty, to the Vice Chancellor for the division within which the Covered Individual is employed.

Any violation of this policy may be considered “misconduct” under EHRA faculty and non-faculty employee policies.  It should be noted that violation of this policy may also implicate violations in related federal regulations and state statutes as discussed in this policy and could result in penalties outside the auspices of the University.

• North Carolina General Statute on Public Officers or Employees Benefiting from Public Contracts; Exceptions (N.C.G.S. 14-234)
• North Carolina State Government Ethics Act (N.C.G.S. 138A)

• UNC Policy on Conflict of Interest and Commitment (330.2.2, 300.2.2[G], 300.2.2.1[R], 300.2.2.2[R]
• UNC Policy on University Research Relations with Private Enterprise (500.1)
• UNC Policy on Patent and Copyright Policies (500.2)

• UNCG Patent and Invention Policy
• UNCG Copyright Ownership and Use Policy
• UNCG Promotion, Tenure, Academic Freedom, and Due Process Regulations
• UNCG Policy on Employees Exempt from the State Human Resources Act
• UNCG Policy on External Professional Activities for Pay by Faculty and EHRA Non-Faculty Employee
• UNCG Guidelines for Use of University Resources in Support of Entrepreneurial Activities

Alan Boyette, Senior Vice Provost
336-334-5494
[email protected]

Director of Research Integrity
336-256-1173