Examples of Conflicts of Interest

Introduction

A conflict of interest exists where there is a divergence between the individual interests of a person and their professional obligations to the institution such that an independent observer might reasonably question whether the professional actions or decisions of that person are, or appear to be, influenced by their own interests.

The following guidelines provide some examples detailing situations where it is considered a conflict of interest may, or may not, arise or exist. It is impossible to define all the potential areas where a conflict of interest may arise and therefore if a staff member is in any doubt as to whether a conflict may exist, they should seek advice from their Head of Department.

The examples provided have been separated into 3 categories:

Activities which are normally or ordinarily permissible;
Activities that appear to present potential conflicts of interest or commitment; and
Activities that clearly present such serious problems/issues as to be incompatible with University policy.

A. Activities which are normally or ordinarily permissible include:

Participation in scientific or professional association activities, editorial responsibilities, or service on scientific review boards and panels.
The acceptance of honoraria for commissioned papers and occasional lectures.
Service as a consultant to outside organisations (provided the arrangement is in accordance with the University's paid outside work policy).
Service on boards and committees of organisations (public or private) that does not unduly distract staff from their University obligations.
Performance of duties that are specified under an academic staff member's engagement profile or general staff member's position description.

B. Activities that appear to present potential conflicts of interest or commitment include:

Where a staff member has a financial/personal interest in an enterprise with which the University does business and is in a position to influence relevant business decisions.
Situations where the time or creative energy a staff member devotes to activities additional to their University responsibilities (including those listed under A.), appears substantial enough to compromise the amount or quality of their University activities.
Activities for which employees are personally remunerated from an external source/party. (eg. research projects, conferences, teaching programs, remunerative consulting agreements, etc) that involve, or might reasonably be perceived to involve, the University's name, facilities, equipment and staff.
Activities that violate, or might reasonably be perceived to violate, any of the principles governing research supported by funds administered through the University insofar as these principles are relevant to individual behavior.
A staff member having a commitment outside the University that involves frequent or prolonged absence from the University on non-University business.
Holding positions, such as Chief Scientific Officer, in companies sponsoring and conducting research at the University while simultaneously a staff member.
Chairing a committee responsible for allocating internal funding for research at a faculty or university level where funding is granted to the Chairs' school/department.
Providing lecturing and tutoring services for another tertiary education provider.

C. Activities that present such serious problems as to be incompatible with University policies include:

Situations in which a staff member assumes responsibilities for an outside organisation that diverts their attention from their University duties, or creates other conflicts of loyalty.
Use of unpublished information emanating from University research or other confidential University sources for personal profit, or assisting an outside organisation by giving it unreasonably exclusive access to such information.
Consulting under arrangements that impose obligations that conflict with the University's intellectual property or with the University's obligations to its research sponsors.
Circumstances in which research that could and ordinarily would be carried on within the University is conducted elsewhere to the disadvantage of the University and its legitimate interests.
Negotiations by a staff member of the terms under which any intellectual property, or other property of the University, is to be sold, licensed or transferred to an external entity in which the staff member has a financial interest.
A staff member holding shares in a company controlled by one of the students or staff over whom they have responsibility.
A staff member holding shares in a company that is sponsoring research at the University, where that research is managed or controlled by that staff member.
A staff member directing University resources that can influence an external entity's development where they are directors or shareholders of that entity.
A staff member accepting gifts of value, grants and/or favours from persons or associates who would be seen to benefit from the making of these gifts.
A staff member involved in the admission, supervision, assessment or examination of a student with whom they have, or have had, a close personal relationship.
A staff member taking part in any selection, promotion, reclassification, evaluation or grievance process with prospective or current staff members with whom they have, or have had, a close personal relationship.
A staff member using University assets or confidential University information for their personal gain, or for the benefit of family or friends.
A staff member with responsibility for the supervision of a student or another member of staff with whom they have a sexual relationship.
A staff member taking part in the assessment of a tender application where they have, or have had, a close personal relationship with a person or organisation submitting a tender application.
A staff member undertaking research/clinical trials which are sponsored by a company in which the researcher (or an associate of the researcher) has a financial interest, or holds an executive position.
A staff member holding an equity interest or executive position in a start-up company that has contracted with the University to conduct further research.
Accepting payment for private tutorials for students enrolled at the University.

Acknowledgements:

Conflict of Interest Policy, The University of Colorado (1994)
Conflict of Interest and Commitment, The Australian National University (2002)