In a community as large and complex as the University, there is the possibility
that faculty members pursuing individual interests could find their
actions in conflict with those of the University. Because conflicts
can arise in many different contexts, there are a number of sources
of information about conflict of interest policies and regulations.
These sources are listed at the end of this section.
As a general principle, the University's policy regarding conflict
of interest is based on the premise that honesty and professional
integrity
are expected of all faculty and staff, and it would be a serious violation
of this trust if the interests of the University were to be disregarded
in the course of performing professional duties. Also inconsistent
with University policy is the use of official position and influence
to further
either personal gain or that of families or associates. As with other
ethical questions, the responsibility to recognize potential conflicts
and prevent them rests with individuals. Faculty and staff members
with significant exposure to potential conflict of interest situations
are
encouraged to develop a sensitivity to this issue and to seek guidance
when appropriate. For additional information about University policy
statements regarding conflict of interest or advice about a particular
situation, faculty on the Ann Arbor Campus should contact the Office
of the Vice President and General Counsel (764-0304).
In July 2005 the University revised its policy on conflicts of interest (COI) and conflicts of commitment (COC); see Standard Practice Guide 201.65-1. The revised SPG calls on the schools, colleges, and administrative units to develop decentralized implementation policies, which began during the 2005-2006 academic year and will be completed during the 2006-2007 academic year.
As stated in the SPG procedures, the deans and directors of the schools, colleges, and research units will consult with faculty in the process of developing implementation policies. As also stated, each school or college will submit the conflict interest/conflict of commitment implementation policy to the governing faculty for approval, following the applicable procedures of the school or college.
Policies, Regulations, Statutes, and
Procedures Concerning Employees' Outside Interests and Related
Issues
State Statute
State of Michigan Statute (P.A. 317 of 1968)
The State of Michigan statute on avoidance of Conflict of Interest
prevents University employees from contracting with the University,
either individually or on behalf of external business entities in
which the University employee has an interest, unless the terms of
any such proposed contract are disclosed in full to the Executive
Officers and approved in advance by a two-thirds vote of the Regents.
Regental Policies
Regental Policy on Outside Employment
Conditions governing permissible outside employment of a full-time
instructional staff member, including external consulting, are set forth in Bylaw
5.12.
Each of the governing faculties of the University is authorized
to formulate unit policies implementing the Bylaw. See
also SPG
201.65-0 and Sections 9.E "Working Outside the University" and 9.G "Limitation on Days of Additional Compensated Activities Within the University".
Regental Policy on Governmental Activities
Bylaw 5.13
describes University policy regarding the holding of public office
(either elective or appointive) by a University staff member.
Gifts to Regents, Officers and Faculty
Bylaw 2.16
reads in its entirety, "No individual Regent, officer, member
of the faculty, or other employee shall accept a gift of substantial
value from a student or students enrolled in the University, and
no such person shall accept a gift of substantial value from any
person
having business relations with the University."
Regental and Executive/Senior Officer Conflict of Interest Policy
Bylaw 1.14
describes when a Regent or executive/ senior officer is considered
to have a conflict of interest and the steps to be taken in that
event.
The Bylaw is in addition to any obligations imposed on a Regent or
executive/senior officer by state law.
Regents' Policy Concerning Openness in Research Grants, Contracts and Agreements
The Regents' Policy, approved on April 17, 1987, establishes guidelines
for the acceptability of restrictions on openness in research grants,
contracts, and agreements. SPG
303.01 contains both the text of the Regents' Policy and the
implementation guidelines for the policy.
Regents' Policy on Intellectual Properties: Including Their Disclosure,
Commercialization, and Distribution of Revenues from Royalties and Sale of Equity Interest
Bylaw
3.10 deals
with the "Ownership of Patents, Copyrights, Computer
Software, Property Rights, and Other." This Bylaw is amplified
by a Regental policy that speaks to the objectives of the University's
technology transfer/intellectual property development activities.
The policy deals with disclosure to the institution, options for
commercialization,
acceptable provisions in assignment and license agreements, and distribution
of revenue from royalties or sale of equity interest. (SPG
303.04)
Regents' Policy on Business Transactions
Bylaw 1.13
provides that as a general rule, Regents and University Officers
may not receive compensation from University funds for any business
or
professional activity except for Board-approved compensation of Officers.
SPGs
University Policy on Work Outside the University
SPG
201.65-0 applies to all University employees. It allows work
outside the University as long as this work does not detract
from the individual's
performance of University duties and responsibilities or create a
conflict of interest.
Appointment of Relatives or Others with Close Personal or External Business
Relationships
SPG
201.23 contains University policy on appointment of individuals
with close personal or external business relationships and procedures
to assure equal opportunity and to avoid the possibility of favoritism.
Limitation on Days of Additional Compensated Activities Within the University
University policy states that appointment as a full-time staff member generally precludes other employment at the University. Compensation for full-time appointments will cover all responsibilities to the University, including teaching, research, administrative and supervisory duties or other professional activities.
Additional U-M compensation, which is paid on a special stipend, may be approved for only the services that a U-M faculty member provides that are clearly above and beyond services associated with the faculty member’s obligations. A dean or director normally should not approve special stipends for more than four days in any calendar month. Unusual circumstances justifying payments for more than four days should be explained. (SPG 201.85)
Policy Statement on the Integrity of Scholarship and Procedures for Investigating
Allegations of Misconduct in the Pursuit of Scholarship and Research
The Policy defines serious academic misconduct and establishes a
procedure for investigating and reporting allegations of misconduct.
Among the categories of serious academic misconduct are falsification
of data, abuse of confidentiality, and dishonesty in publication.
(SPG
303.03)
Purchasing Conflicts
It is the responsibility of each member of the University staff
and of the Purchasing Department to assure that the University does
not
knowingly enter into a purchase commitment which could result in
a conflict of interest situation. (SPG
507.01)
Other University Policies
Research Proposal Approval Form (PAF) Disclosure ("Negative Disclosures")
Every proposal for externally sponsored research requires an internal
document called the Proposal Approval Form on which summary information
about the proposal is collected. The form requires certain certifications
and disclosures. It provides an opportunity for faculty investigators
to provide certification that no proposed investigator on the sponsored
project, nor his or her immediate family has a significant financial
interest in the proposed research. PAF forms are available on the
Research Web site <www.research.umich.edu>,
from DRDA, and from departmental offices.
Policy and Procedures for Dealing with Financial and Outside Management
Conflicts of Interest in Sponsored Projects and Technology Transfer
("Positive Disclosures")
When a faculty researcher on a proposed research project or a member
of his or her immediate family has a significant financial or management
interest in a sponsored project, formal disclosures are required.
Disclosures are reviewed by designated faculty committees for determination
of whether a conflict of interest exists and, if so, whether the
conflict
of interest might be managed. The disclosure form and the policy
are available on the Research Web site <www.research.umich.edu>.
