Rices New Staff Conflict of Interest Policy and Procedures Administrators Forum

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Rices New Staff Conflict of Interest Policy and
ProceduresAdministrators Forum

• Richard A. Zansitis
• General Counsel
• April 2008

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• Why a need for a revised policy?
• Prior policy (838-99) covered only conflicts in
  the purchasing of supplies, services and
  equipment
• Standards had evolved since policy last reviewed
  in 1999
• Greater scrutiny of non-profits and universities
  by government and media
• Need to better articulate ethical expectations
  and provide guidance for staff
• Create a better process to identify and manage
  conflicts

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• Evolution of revised policy
• Last year, administration discussed need to
  revise policy with Audit Committee of Board of
  Trustees
• Reviewed policies of peer institutions and
  resources on good governance
• Draft policy reviewed with Audit Committee in
  December 2007
• Input received from senior administration and
  deans
• Signed by President Leebron on March 31

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• Revised policy 838 primarily directed to staff
  employees, though ethical expectations applicable
  to all
• Faculty already covered by policies 216-97 and
  332-96

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• New Policy 838 meant to complement (not replace)
  existing policies that touch on potential
  conflicts of interest
• Dual Employment and Multiple Jobs (404-96)
• Nepotism (419-96)
• Purchasing Policy (814)
• Personal Use of University Property (831-96)
• Appropriate Use of Computer Resources (832-99)

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• Fundamental rule behind policy is employees
  obligation to perform their Rice duties honestly
  and fairly without the Universitys interests
  being compromised by individuals personal or
  financial interests

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• All University employees are expected to perform
  their responsibilities diligently, legally,
  honestly, in good faith, in accord with
  principles of loyalty and fidelity to Rice
  University, and in furtherance of Rices mission
  of education, research and scholarship.
  Employees who have an actual or potential
  conflict of interest in performing their duties
  for the University have an obligation to disclose
  the conflict in writing in a timely fashion, so
  that the University can determine how best to
  avoid or manage the conflict. Employees must be
  sensitive to situations that may pose a conflict
  of interest or the appearance of a conflict of
  interest so that they are perceived at all times
  as objective, ethical, free from bias or undue
  influence, professional and fair in performing
  their duties.

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• What is a conflict of interest?
• A conflict of interest exists where an outside
  activity of the employee competes with or
  diminishes the interest of the University or
  interferes with the employees performance of
  duties on behalf of the University. A conflict
  of interest also occurs when the outcome of a
  decision that should be made in the best interest
  of the University conflicts with the personal or
  economic interest of the employee. Among such
  decisions that may present conflicts are those
  determining or recommending the use of suppliers
  or vendors, the use of University resources, or
  the use of ones own work time.

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• To avoid a conflict of interest, employees must
  not be in a position of making or participating
  in the making of a decision as part of their
  University responsibilities if the personal or
  economic interest of themselves, members of their
  families or others with whom they have a personal
  relationship (including outside organizations)
  may be directly affected by the outcome.

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• Key areas of new Policy No. 838
• Clearer expression of ethical standards expected
  of employees.
• More explicit definition of familial and other
  relationships that are covered (individuals to
  which employee related by blood, adoption or
  marriage or residing in the same household,
  including spouses, domestic partners, others with
  whom the employee has an intimate relationship,
  children, grandchildren, parents, siblings,
  aunts, uncles, cousins, nieces and nephews and
  their spouses).

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• Key areas of new Policy No. 838 (cont)
• Specification of size of equity/ownership
  interest in policy as trigger for disclosure,
  with carve out for stocks held through mutual
  funds.
• Better guidance on prohibition of gifts and
  gratuities, prior approval of trips paid by
  vendors, as well as a discussion of business
  meals and events (e.g. payment for a modest meal
  or event).

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• Key areas of new Policy No. 838 (cont)
• Provides guidance on potential conflict of
  commitment or interest relating to an employees
  outside activities, including non-profit
  activities, recognizing that reasonable
  involvement of staff in community activities is
  good for Houston and good for Rice.
• Revises the process for disclosure and management
  of conflicts to have written disclosure by
  employee to immediate supervisor with one-up
  review and approval.
• Process would also allow VPs to require
  affirmative certification of no conflict every
  year for areas of their operations where they
  think there may be greater risks.

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• Key Points to Remember
• Goal is to avoid even the appearance that an
  employees actions are tainted by personal or
  financial benefit
• If any doubt, disclose
• Disclosure of relevant facts must be in writing
  and to the supervisor
• Plan for management of the conflict must be in
  writing, approved by the supervisors manager and
  followed
• If any questions, seek guidance from HR or Legal

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• A question for Rice University department chairs,
  administrators and managers---
• What do Astros tickets, dining out, purchase
  orders, and hiring the neighbors kid have in
  common?
• You better find out!
• A new conflict of interest policy that applies to
  all Rice staff is now in effect.
• Come learn about it and about your
  responsibilities to carry it out, and to
  communicate the expectations of the policy to
  your staff.
• One-hour information workshops are available to
  all chairs, administrators and managers. No RSVP
  is required.
• April 16 1030-1130 AM Farnsworth
• April 22 1030 1130 AM Farnsworth
• April 29 400 500 PM Farnsworth