Human Resources Policies
POLICY: CONFLICT OF INTEREST AND COMMITMENT POLICY
Policy Number: OGC-1
Effective Date: July 2002
Revisions: April 2000, December 2001, September 2009
Responsible Officer: Office of General Counsel
PURPOSE:
The Drexel University College of Medicine (The “University”) occupies a position of trust and responsibility in the community. It has obligations to external organizations, government, patients and the community to use its resources responsibly and, where required, for designated purposes. In meeting its obligations, and consistent with its three-fold mission of patient care, education and research, the University expects all Members of the University Community to carry out their responsibilities with the highest level of integrity and ethical behavior.
In conducting its affairs, the University is subject to many laws, regulations, and contractual obligations that are often complex. For faculty, whose broad activities are essential to the success of the University, it is important that there is cognizance of all legal and regulatory requirements associated with activities undertaken.
In its endeavors to advance knowledge through research, it is the University’s policy to follow policies and practice that will ensure the integrity of the research conducted at the University. In addition, the University has a related obligation to the sponsors of research, including the U.S. Public Health Service and other Federal agencies, to meet published requirements for recipient institutions, including “Responsibility of Applicants for Promoting Objectivity in Research for Which PHS Funding is Sought” (42 C.F.R. § 50). At the same time, the University recognizes its obligation to provide appropriate ways to meet investigators’ desires to be recognized for and to benefit financially from scientific advances to which they have made a major contribution.
The University's policy is to comply with all Applicable Rules affecting its activities. This Conflict of Interest and Commitment Policy (the “Policy") is intended to satisfy compliance requirements and to guide University personnel in avoiding those situations that can result in a conflict of interest or commitment. The key to avoiding these situations is awareness of what constitutes such conflicts, disclosure of potential situations before activity is undertaken, and a review of the situation. After review, a determination may be made in certain cases to permit an activity, which may otherwise be considered a conflict, if it is beneficial to the University and can be effectively controlled to ensure compliance with all legal, regulatory and other requirements.
I. POLICY STATUS
This is the third revision of a policy approved by the Board on 4/13/00.
II. POLICY
It is the policy of the University that all Applicable Members must discharge their duties in the best interests of the University. (See Section 6 Notes) Therefore, each Applicable Member must:
A. Refrain from putting the interests of any individual, agency, organization, above the best interests of the University.
B. Refrain from any activity or transaction that could influence or cause an employee not to act in the best interests of the University, including, without limitation, any personal business transaction or private arrangement, whether direct or indirect, for personal profit which accrues from or is based upon a position of authority with the University or upon confidential information which is obtained by reason of such position of authority. For purposes of this policy “personal” means the employee, any member of his or her immediate family (spouse, parents, children, siblings) and any entity with which he or she may be associated.
C. Disclose any financial, ownership, or management interest in any entity engaged in the delivery of educational services or in the delivery of goods or services to the University.
D. Refrain from participation in a transaction with the University for personal profit except upon the written approval of the President. Such approval shall be disclosed in the Conflict of Interest Statement.
E. Disclose any personal activity or business opportunity, which is within the scope of the activities of the University and refrain from exploiting such opportunity except upon written approval of the President.
F. Refrain from accepting any gift, favor or service from any person who can influence the exercise of the employee's professional judgment on behalf of the University. This includes any person with whom the Applicable Member may transact business on behalf of the University, or whom the Applicable Member knows to be transacting business with the University.
G. Refrain from making or tendering payments, gifts or services to or for the benefit of any government or accrediting agency official, employee or designee who is in a position to influence directly or indirectly, any government or accrediting agency action or decision.
H. Refrain from making or soliciting contributions, in the name or on behalf of the University or with University funds or facilities in any form to, or in aid of any political party, group or candidate.
I. Refrain from participating in any employment, salary, or other important decision regarding an immediate family member. Members of the same family may not be employed in a situation where one member of the family works under the administrative supervision of another. Any exceptions shall go through the appeals process and be resolved at the senior vice president level or above.
Violation of this policy will result in appropriate disciplinary action up to and including termination of employment, cessation of business with a vendor, and other appropriate remedies. If there is any doubt about a situation, employees shall discuss it with their supervisors to determine what action, if any, needs to be taken. Applicable Members may also contact General Counsel, the Vice President for Research, or the Chief Compliance Officer (“CCO”) regarding a question in this area.
III. PROCEDURES
The President of the University, or his designees(s), will administer the Conflict Policy. The President may, at his discretion, refer selected issues or matters to the Audit and Legal Committee of the Board of Trustees.
A. The Conflict Policy is to be communicated at least annually to all Members of the University Community. This communication shall be documented. New employees are to be provided a copy of this Conflict Policy by their supervisors.
B. A Conflict of Interest Statement in the form set forth as attached hereto and made a part of this policy will be sent annually, on or prior to October 1, to Applicable Members, per attached definitions. Immediate supervisors, Vice presidents and administrative heads are to assure that all Applicable Members receive the statements. Completed and Signed statements are to be returned by November 20th. However, Applicable Members shall request these statements to provide update information at any time as required. The immediate supervisor, or his or her designee, of a newly employed or affiliated Applicable Member (or in the case of a Board member or the President, to the designee of the Board) will provide the applicable member with a conflict of interest certification within thirty (30) days of the Applicable Member’s commencement of his or her position. The Applicable Member must return the completed and signed statement to the immediate supervisor or designee for initial review within thirty (30) days of receipt. The supervisor will maintain the completed and signed statements. An employee’s supervisor or management may require an Applicable Member to complete these statements whenever a situation arises that may potentially involve this Conflict Policy.
C. A disclosure of conflict of interest or potential conflict requires that the supervisor review the situation and document a suggested resolution. The disclosure statement and suggested resolution shall be forwarded to applicable management for approval. Usually, the minimum level of such approval is Dean for academic areas and Vice President for administrative areas. General Counsel must also approve any resolutions. It is expected that Deans and Vice Presidents will investigate the situation and confer with necessary personnel, including General Counsel, the CCO and an advisory committee as necessary. The Applicable Member making the disclosure will be notified of the resolution in writing and signed to acknowledge the resolution. All resolutions must be in the best interests of the University. If research is involved, the resolution must meet the granting institution’s requirements.
D. Applicable Members may appeal a resolution regarding their situation. The normal channel for appeals is the next higher administrative level. For academic areas an appeal may be made to the Dean, Provost, and finally the President. Administrative areas may appeal to a Vice President, Senior Vice President, and finally the President. Each level of appeal shall arrive at a resolution within thirty (30) days from the date received by the reviewer. All appeals must be made in writing.
E. Immediate supervisors will provide General Counsel with copies of statements that include disclosures, and General Counsel will maintain a complete copy of all documentation resulting from statements with disclosures.
F. All disclosure statements and related documentation are to be retained by the University for four (4) years. Departments and applicable management including Senior Vice Presidents will maintain original documentation of documents resulting from disclosures in statements. All disclosures and related actions for grants must be maintained at least three (3) years beyond the termination of the related grant or resolution of any action with the granting organization, whichever is longer. Research related disclosures are to be maintained by the Vice President for Research.
G. All disclosure statements shall be available for review by appropriate University personnel and agents including General Counsel, the CCO, and external legal advisors and auditors.
H. Research related disclosures of a potential or actual conflict of interest and suggested resolutions are to go to the Vice President for Research for disposition. The Vice President for Research shall consult with General Counsel and the CCO in reaching resolutions about research related disclosures. If the Vice President for Research deems it appropriate, then others, including an advisory committee composed of faculty and administration, may be included in reaching a resolution.
I. Conflicts involving senior management are to be resolved by the President in consultation with General Counsel, the CCO, and the Board of Trustees if deemed necessary.
J. Conflicts involving the President are to be resolved by the Audit and Legal Committee of the Board of Trustees whose recommendation shall be approved or modified by the Board of Trustees.
K. An Applicable Member who is aware of a potential or perceived conflict of interest involving another Applicable Member(s) shall report the situation by filing a written notice with the supervisor of the person(s) potentially involved in the conflict of interest. The supervisor shall send a copy to General Counsel and the CCO. Reasonable supporting information or materials shall accompany the Disclosure Statement. It is a violation of University policy to retaliate against an Applicable Member who files such a statement raising a potential or perceived conflict of interest. It is also a violation for an Applicable Member knowingly to file a false statement. If such actions shall occur, they shall be brought immediately to the attention of the General Counsel and the CCO.
IV. DISCLOSURES
A conflict of interest situation or potential conflict of interest could arise at any time. It is therefore required that such a situation be disclosed before occurrence or as soon thereafter as possible. If any Applicable Member is in doubt about a situation it shall be fully disclosed so that a determination can be made. If management determines that the situation disclosed is not a conflict of interest, the determination, with appropriate explanation, shall still be forwarded to General Counsel.
V. NOTES
A. This policy applies to wherever activities are conducted, both in the United States and abroad.
B. Applicable Members Include:
1. Trustees;
2. The President, officers, and those individuals classified as Senior Management Staff, Deans, Associate Deans, Administrative Heads, Department Chairs, Department Administrators, Directors, Assistant Department Chairs, Assistant Directors, and Administrative Supervisors;
3. All Members of the University community who are in a position to influence or place orders with vendors;
4. Faculty;
5. Any other Members of the University Community for whom disclosure is required by legal, contractual, University policy or other requirements, who have been notified by their immediate supervisor that disclosure is required.
C. Applicable Members accepting grants or contracts must be knowledgeable of the granting and contracting organization's conflict of interest policy and agree to abide by it. For example, the National Science Foundation (NSF) and the Public Health Service (PHS) have published very specific policies regarding conflict of interest in research. Sub-awardees must also agree to abide by the organization's policy. A statement to this effect must be provided to the
Vice President for Research.
D. If the granting or contracting organization's conflict of interest policy requires less than the University, the University's Conflict Policy must still be followed.
E. The Vice President for Research will assure the University’s compliance with the granting and contracting organization’s policy and will certify, where required, that the University meet the requirements of the granting or contracting organization's conflict of interest policy. The Vice President for Research is responsible for notifying the granting or contracting organization if the University cannot comply with its conflict of interest policy, and for resolving the situation with the organization.
F. In order for a determination to be made as to whether a particular relationship gives rise to a conflict of interest, Applicable Members must first disclose all Financial and Ownership Interests (including such significant positions as employee, consultant, executive officer, or director) in or with any entity engaged in the delivery of educational services or the delivery of other goods and services to the University, or in any entity which is engaged in activities which could be construed to be in competition with the University.
G. Financial Interest means a relationship with any person or entity from which an Applicable Member, or any Immediate Family Member, derives anything of monetary value, including:
1. An interest in a Business consisting of any stock, stock Business, but excluding any interest arising solely by reason of investment in such Business by a mutual, pension, or other institutional investment fund over which neither the Applicable Member nor any Immediate Family Member exercises control; and
2. Receipt of, or the right or expectation to receive, any income from such Business in one or more of the following forms: a consulting fee, honoraria, salary, allowance, forbearance, interest in real or personal property, dividend, royalty derived from the licensing of technology or other processes or products, rent, capital gain, or any other form of compensation.
H. Ownership means either (i) title to or control of at least 2% of the stock, partnership interest, or similar equity interest of a Business, or (ii) any equity interest of $10,000 or more in a Business.
VI. Examples:
The following are common situations (although these are not to be construed as a comprehensive list) involving a conflict of interest or commitment and as such must be disclosed and a determination made as to their permissibility:
A. Providing consulting or managerial services to any organization doing business with the University, seeking to do business with the University, or which is a competitor of the University.
B. Using University resources, facilities, and personnel for non-University related activities. Any such activities would require Dean, Provost or Vice Presidential written approval.
C. Participating in any activities or transactions that would cause the relationship with a vendor to be other than “arm’s length.”
D. Accepting gifts for an Applicable Member's own use, entertainment, money, services, or other favors from any organization or individual doing business with the University, seeking to do business with the University, or which is a competitor of the University. This also does not include books and other educational materials that faculty may receive to review for classroom adoption. This does not include acceptance of items of a nominal value intended as a good will gesture and not to influence decisions or actions affecting the University. Examples are calendars, paperweights, and pens used in advertisements by an organization. The purpose is to avoid accepting anything offered with the appearance, intent, or effect of influencing the exercise of the employee’s professional judgment on behalf of the University. For example, under the proper circumstances, a business lunch would not be a conflict of interest.
E. It is the policy of the University to have gifts arranged through the office of Institutional Advancement (OIA). Any Applicable Member who becomes aware that an organization or individual desires to make a gift to the University shall contact OIA to make the necessary arrangements.
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