CONFLICTS OF INTEREST: IDENTIFICATION, REPORTING AND MANAGEMENT THE CATHOLIC UNIVERSITY OF AMERICA

Transcription

1 CONFLICTS OF INTEREST: IDENTIFICATION, REPORTING AND MANAGEMENT

2 GOALS Define conflict of interest Identify the types of potential conflicts that arise in higher education Understand when to report potential conflicts Describe how potential conflicts are managed by the University

3 WHERE TO GO FOR GUIDANCE For questions about this tutorial, or to discuss or report a potential conflict, contact the University Compliance Officer: Vin Lacovara, J.D. Certified Compliance and Ethics Professional Compliance and Privacy Officer Office of the President The Catholic University of America (202) LACOVARA@CUA.EDU

4 A NOT SO HYPOTHETICAL SITUATION You are attending a business conference sponsored by vendors that provide services to higher education. One of the vendors holds a raffle for an ipad. You place your business card in the raffle. After the conference the vendor contacts you and informs you that you won the raffle. The vendor wants to meet you on campus, provide you with the ipad, and discuss how their company s products and services can improve the University s operations.

5 ANOTHER NOT SO HYPOTHETICAL SITUATION Dr. Juliet Jackson has just earned her Ph.D., and has been hired by an academic department as an associate professor. As part of her administrative duties Dr. Jackson will mentor and advise graduate students working toward their Ph.D.'s. She has been assigned to mentor and advise Romeo Wright, who happens to be a close family friend.

6 CONFLICTS IDENTIFICATION What are the potential conflicts in these situations? How should these situation be addressed? This tutorial will answer these questions.

7 THE FUNDAMENTAL RULE If you believe a situation might pose a potential conflict, follow the fundamental rule: Report, Recuse, Refrain

8 THE FUNDAMENTAL RULE Report the situation to your supervisor or to the Compliance Officer Recuse yourself from decision making on the matter Refrain from involvement in the matter except to respond to questions from your supervisor or the Compliance Officer

9 WHEN IS THERE A POTENTIAL FOR A CONFLICT? When a benefit is provided to oneself or to one s family or friends Acting with compromised professional judgment or objectivity based on personal interests Any potential divergence between personal interests and duty to the University

10 A WORD ABOUT APPARENT CONFLICTS The appearance or perception of a conflict of interest can be as damaging as an actual conflict

11 TYPES OF CONFLICTS Financial Conflicts (e.g. doing business with self or family members, receiving gifts from vendors/contractors in return for doing business) Hiring and Supervision Conflicts (e.g. making employment or academic decisions involving family or friends. Also called nepotism. )

12 TYPES OF CONFLICTS Time Conflicts (e.g. not providing full or appropriate time to the University, excessive outside activity) Loyalty Conflicts (e.g. involvement in decisions where the individual has a duty to both entities in the transaction)

13 TYPES OF CONFLICTS Objectivity Conflicts (e.g. a financial conflict of interest under federal research regulations)

14 WHERE POTENTIAL CONFLICTS ARISE Academic decisions and actions Admissions and financial aid Governance and management decisions Hiring and employment decisions/actions Purchasing and contracting Sponsored research Time commitment/consulting

15 LAWS GOVERNING CONFLICTS Internal Revenue Service (Form 990) IRS focus is on impropriety by officers, directors and trustees, primarily of a financial nature.

16 LAWS GOVERNING CONFLICTS Public Health Service Regulations Apply to PHS-funded research awards to University researchers Address objectivity in research Focus is on researchers Financial Conflicts of Interest (FCOI)

17 LAWS GOVERNING CONFLICTS Office of Management and Budget (OMB) Uniform Guidance Government contractors must maintain written conflict of interest standards for staff who administer government contracts Contractors must disclose conflicts to the awarding agency

18 THE UNIVERSITY S CONFLICT OF INTEREST POLICIES The following University policies address the foregoing regulations and potential conflict situations: Conflict of Interest Policy for Staff and Faculty Interest/full-conflict.cfm

19 THE UNIVERSITY S CONFLICT OF INTEREST POLICIES Gifts from Contractors/Vendors Policy Conflict of Commitment Policy (Faculty) Compensation from External Consulting (Faculty)

20 THE UNIVERSITY S CONFLICT OF INTEREST POLICIES Conflicts of Interest Policy Externally-Funded Research Conflicts of Interest Board of Trustees Policy

21 POLICY GUIDANCE Know and follow the University conflict policy or policies that apply to your activities. If uncertain which policies apply, contact your supervisor and the Compliance Officer for guidance

22 HYPOTHETICAL SCENARIO #1 REVISITED You are attending a business conference sponsored by vendors that provide services to higher education. One of the vendors holds a raffle for an ipad. You place your business card in the raffle. After the conference the vendor contacts you and informs you that you won the raffle. The vendor wants to meet you on campus, provide you with the ipad, and discuss how their company s products and services can improve the University s operations.

23 CONFLICT IDENTIFICATION Fundamental Questions Does someone in the transaction/activity potentially have compromised objectivity or divided loyalty? Is the institution receiving less than the best value, price and/or service? If so, is someone from the institution who is involved getting a benefit from that transaction? What do your instincts tell you?

24 THE POTENTIAL CONFLICT This is a Potential Financial Conflict If the ipad is really a random prize, it is not a conflict. However, if the vendor is giving it as a gift in exchange for an expectation of business, then it would pose an actual conflict to accept the ipad.

25 WHAT SHOULD YOU DO IN SITUATION LIKE THIS? Remember the fundamental rule Report, Recuse, Refrain

26 WHAT SHOULD YOU DO IN A SITUATION LIKE THIS? Report the situation to your supervisor or to the Compliance Officer Recuse yourself from decision making on the matter Refrain from involvement in the matter except to respond to questions from your supervisor or the Compliance Officer

27 HOW WILL THE UNIVERSITY RESPOND? Thank you for reporting the potential conflict!! The University likely will permit you to accept the ipad, so long as you or the University are not obligated to do business with the vendor. See the Gifts from Contractors/Vendors Policy. (

28 NOT SO HYPOTHETICAL SCENARIO #2 Dr. Juliet Jackson has just earned her Ph.D., and has been hired by an academic department as an associate professor. As part of her administrative duties Dr. Jackson will mentor and advise graduate students working toward their Ph.D.'s. She has been assigned to mentor and advise Romeo Wright, who happens to be a close family friend.

29 THE POTENTIAL CONFLICT This poses a potential employment conflict (nepotism) Because Dr. Jackson has a personal friendship with Mr. Wright, it would pose an actual conflict under the Conflict of Interest Policy for Staff and Faculty if she were to serve as his advisor.

30 WHAT SHOULD DR. JACKSON DO? Report, Recuse, Refrain

31 A NOTE ABOUT CONFLICTS AND ETHICS Dr. Jackson s relationship in this situation is not an ethical or policy violation. Like many potential conflicts, this simply is a situation that needs to be managed to avoid an a potential conflict from becoming an actual or apparent conflict.

32 HOW WILL THE UNIVERSITY RESPOND? The University will manage the situation by assigning another advisor for Mr. Wright.

33 NOT SO HYPOTHETICAL SCENARIO #3 Dr. Paula Petri, a distinguished researcher, will be joining the faculty. Dr. Petri s husband, Dr. Dan DeBar, also is a scientist and owns a for-profit research laboratory. Dr. DeBar has worked with his wife on various projects over the past 15 years. As part of her agreement with the University Dr. Petri asks the academic administration to hire Dr. DeBar as an associate faculty member so that he can work under her on her new research award sponsored by the National Institutes of Health.

34 THE POTENTIAL CONFLICTS This poses a potential objectivity in research conflict If Dr. DeBar and his for-profit laboratory receive part of the research funds via Dr. Petri, it may pose a financial conflict of interest (FCOI) under the Public Health Service (PHS) regulations

35 THE POTENTIAL CONFLICTS This also poses potential nepotism Dr. Petri likely will be responsible for making employment decisions regarding a family member and a potential time commitment conflict If Dr. DeBar works at both his laboratory and at the University, he may not be able to devote sufficient time to the University

36 HOW WILL THE UNIVERSITY RESPOND? Disclose Dr. Petri s and Dr. DeBar s relationship to the National Institutes of Health and obtain their guidance. If Dr. DeBar is hired, a supervisor other than Dr. Petri will be assigned. If Dr. DeBar is hired, confirm that he will devote the appropriate time to his faculty duties.

37 A COMMON QUESTION I have an outside affiliation that might pose a potential conflict of interest. What should I do?

38 ANSWER If at all uncertain, disclose it Report, Recuse, Refrain

39 HOW DO I DISCLOSE A POTENTIAL CONFLICT? By making an Ad hoc disclosure to your supervisor or to the Compliance Officer Through the annual online disclosure process for trustees, senior staff, directors, and researchers Through the research proposal process for each new award proposal

40 QUESTIONS For questions about this tutorial, or to discuss or report a potential conflict, contact the University s Compliance Officer: Vin Lacovara, J.D. Certified Compliance and Ethics Professional Compliance and Privacy Officer Office of the President The Catholic University of America (202) LACOVARA@CUA.EDU