Ethics Presentation

1
Ethics Presentation

• Student Affairs Divisional Meeting
• Thursday, April 6, 2000
•  
•  
• M. Celeste Cook
• Associate General Counsel
• The University of Akron

2
Introduction

• In general, the purpose of the Ohio Ethics Law
• To prevent public officials/employees from using
  their power/influence to benefit
•  
• themselves,
•  
• their family members, and
•  
• business associates.

3
Reasons Behind Law

• Instill greater confidence in government
• Ohio law -- 1973 following the Watergate
  scandal
• Created new restrictions on unethical conduct
  with criminal sanctions
• Public Trust Greater scrutiny / accountability
  for actions
• Public employees paid with Taxpayer Dollars
• Should make decisions in the best interest of the
  public
• Not use their power for personal gain / special
  treatment
• Higher standards for public servants
• Avoid the appearance of impropriety

4
Example close to home

• Prosecution of Summit County Officials
• Ohio Ethics Comm. Investigation of former Chief
  of Staff for Gov. Voinovich (1997)
• Criminal and Civil Penalties
• Jail time and/or
• monetary fines and/or
• prohibition from holding public employment (7
  years)

5
Ethics Law

• Applies to public officers and employees of
  public universities
• Limited Exception for faculty with no
  administrative or supervisory duties

6
Other general observations about the Ethics Laws

• While the Ethics Laws apply to all public
  official and employees . . .
• The higher you ascend within the public
  institution, the greater scrutiny/accountability
  under the Ethics laws

7
Example of Higher Levels of Scrutiny

• President and Trustees -- Financial Disclosure
  Statements with the Ohio Ethics Commission
  (investments, gifts over 75, etc.)
• to help identify potential conflicts of
  interest
• 10 UA Conflict of Interest Rule
• President Vice Presidents
• Deans Other officers
• Annual disclosure statement
• (memberships on corporate Boards, partnerships,
  or associations held by such officers)

8
Bodies of Authority

• UA Ruleswww.uakron.edu/ogc
• 3359-11-13 Conflict of Interest, Conflict of
  Commitment, Scholarly Misconduct, and Ethical
  Conduct Policies and Procedures
• Goal to avoid, eliminate, remediate or manage
  an actual conflict of interest and/or commitment
• Voluminous Section over 24 pages long
• University rules largely mirror state law

9
Ohio Ethics Laws and Advisory Opinions

• Internet URL www.ethics.state.oh.us/ethicshome.h
  tml
• Civil Portions of ORC Chapter 102
• Criminal Portions of Chapter 2921
• Advisory Opinions written opinions giving
  advice / interpreting the Ohio Ethics Laws

10
Ohio Ethics Commission

• Issues Advisory Opinions
• Full Immunity
• Can request opinionthrough OGC
• Authority to investigate complaints of alleged
  violations of the Ohio Ethics Law
•  
• Could refer to local prosecutor

11
UA Conflict of Interest Rule 3359-11-13

• No University employee is to use or attempt to
  use his/her public position or State property,
  including property leased by the State, to secure
  or attempt to secure
• anything or the promise or offer
• of a thing of value that is of such a degree
• to manifest an improper substantial influence
  upon him/her with respect to his/her duties.
• (Page 4, 11) R.C. 102.03(D), (E)

12
UA Conflict of Interest Solicit or Accept

• No University employee is to intentionally
  solicit or accept from any person or organization
  anything of value pursuant to an expressed or
  implied understanding that his/her conduct of
  university business would be influenced thereby.
• (Page 4, 12)

13
Give or Accept Anything of Value

• No University employee may give or accept
  anything of value that may substantially or
  improperly influence him or her with respect to
  his or her UA duties.
• (Page 7, 22) R.C. 102.03 (D)

14
Ohio Statute

• No public official or employee shall use or
  authorize the use of the authority or influence
  of his office or employment to secure anything of
  value or the promise or offer of anything of
  value that is of such a character as to manifest
  a substantial and improper influence upon him
  with respect to his duties.
• R.C. 102.03 (D), (E)
• Penalty- 1st degree misdemeanor,
• up to 6 mos. In prison 1,000 fine

15
Example

• Dir. Of GSC receives a call from Skyway Chili.
  He wants to take GSC Dir. to lunch to discuss the
  prospect giving UA a great revenue-splitting deal
  on food sales in the new Student Union.
• How should GSC Dir. Respond?

16
Analysis

• Is Dir. accepting something of value ?
• What, if instead of lunch, it were a pen?
• Improper and substantial influence?
• Appearance of impropriety?
• Would it appear that Dir. would be
• giving Skyway a competitive advantage?

17
Depends Upon Facts Circumstances

• Source vendor, potential business associate
• Amount generally more than de minims value
  (inexpensive pens, coffee mugs)
• Items
• round of golf at Firestone Country Club
• event tickets Indians Tickets, Theater
• Appearance of impropriety
• Your character/reputation is everything

18
Use of University Resources

• University resources (both human and material)
  may not be used for any purpose unrelated to the
  mission of the University and neither for outside
  consulting nor for private gain.
• This shall not apply to use of material resources
  used in a purely trivial and incidental way.
• (3359-11-13 p. 2, 3 d.)

19
Example

• UA Assoc. Gen. Counsel has a very limited law
  practice on the side (5-10 hrs/week).
  Occasionally she needs to make court appearances,
  file documents, meet with clients, etc. At
  times, she asks her secretary to type a few
  documents. Sometimes she uses her computer to
  conduct legal research for her private law
  practice. Her boss is unaware of this activity.
• Any problems?

20
Analysis

• Immediate supervisor needs to be informed.
• Conflict of Commitment?
• Using work time for personal work
• After hours or vacation leave?
• Using UA resources (secretary, computer, office
  supplies, etc.)
• UA Computer Use Policy

21
Nepotism Summary

• Nepotism Favoritism shown to relatives,
  especially in appointment to desirable positions
  
• (Websters New World College Dictionary)
•  
•      Purpose for rules prohibiting nepotism,
  especially in public, institutions/governments
•        Conflict of Interest
•        Appearance of Impropriety
• Does not prevent married couples from working
  for the same institution (assuming proper
  procedures were followed in hiring,
  supervision, etc.)
•  

22
NepotismUA Rule

• No University employee may give preferential or
  favored treatment in the supervision or
  management of another University employee who is
  a family member.
• No University employee may authorize or use his
  or her authority, formally or informally, to
  secure authorization of any public contract in
  which he or she or a family member has an
  interest.
• (PP. 7-8, Par 26)

23
NepotismUA Rule

• No University employee, in their official
  capacity, in a position of approve or influence a
  contract, may enter into such a contract which
  involves the UA employees
• family members,
• business associates,
• or any organization with which the UA employee is
  associated
• Applies to employment contracts
• (Pages 6-7, 19)
•  

24
Nepotism

• No University employee may participate, formally
  or informally, in the decision to
• hire, retain,
• grant tenure to, promote,
• determine salary of, discipline,
• renew, modify or
• terminate
• a family members individual employment with the
  University, or to renew, modify, or terminate any
  other condition of employment.
•  

25
Definitions

• Conflict of interest policy
• Family shall have the same meaning as defined
  by O.R.C. 2921.42
• grandparents,
• parents,
• spouse,
• children, whether dependent or not,
  grandchildren,
• brothers and sisters, or
• a person related by blood or marriage
• residing in the same household.

26
Example

• Several senior level employees in the Admissions
  Dept. take ERIP. A husband and wife both work in
  similar jobs in that Dept. Wife applies for a
  senior level position. If she gets the job,
  under the current structure, her husband would be
  reporting to her.
• Can she apply for the job?

27
Analysis

• One spouse cannot report to another
• One spouse cannot make decisions pertaining to
  spouses employment
• evaluations
• raises
• scheduling--hours, vacation leave
• Discuss alternatives with superiors

28
Example

• Director of Financial Aid Office has initiated a
  search for a position which would report
  directly to him. Directors son applies for the
  job. Director, recognizing a potential conflict,
  is not on the search committee, but lets his
  employees and colleagues on the committee know he
  would appreciate their support for his son.
  Committee selects the Directors son for the job.
• Problems?

29
Analysis

• Dir. not on search committeegood
• always recuse yourself when a family member is
  seeking a job
• Did he informally use his influence to hire his
  son?
• (I would appreciate your support
• especially to subordinates)
• Son cant report to father
• Family member cant make employment decisions
  for another family member
• (supervise, evaluate, discipline, etc.)

30
Criminal StatutePublic Contract

• R.C. 2921.42
• (A) No public official shall knowingly do any
  of the following
•   (1) Authorize, or employ the authority or
  influence of his office to secure authorization
  of any public contract in which he, a member of
  his family, or any of his business associates
  has an interest . . .
• Penalty fourth degree felony.
• Includes employment contracts
•  

31
Nepotism --Hiring/Supervision

• General Rule
• Family member can work for the same institution
• As long as there is no involvement with
• hiring process
• supervision
• employment decisions
• (scheduling, evaluations, promotions, raises,
  etc.)

32
Disclosing Confidential Information

• No University employee is to intentionally use
  or disclose confidential information in any way
  that could harm the University or result in the
  receipt of anything of value for
• him/herself
• family member, or
• for any other person or organization with which
  the UA employee is associated.
• (Page 4, 13) R.C. 102.03(B)

33
Example

• Media just learned that a UA athlete was charged
  with a crime. Media contacted employees the
  Registrars Office and the Financial Aid Office
  to learn more about the student (e.g., academic
  standing, grades, scholarship, etc.) Media is
  offering no money for this information.
• Can the employees give the information?

34
Analysis

• No. Information requested is confidential by law
  and may not be disclosed
• FERPA violation
• Violation of Ohio Revised Code
• First degree misdemeanor

35
Same Example--Continued

• Former Registrar is now enjoying retirement. She
  receives a call from Hard Copy for some
  information about the student. The former
  Registrar recalls the information which Hard Copy
  is requesting. Hard Copy is willing to pay
  1,000 for the information.
• Can the former employee give this information?

36
Analysis

• No.
• Prohibition from disclosing confidential
  information extends beyond employment.
• First degree misdemeanor

37
Outside Activities--Disclosure Requirements

• Supervisors must approve review of
  circumstances of outside activity
• Will differ across colleges, schools, departments
  and disciplines
• Factors
• Related to employees responsibilities
• Teaching assignments or other assigned duties
• Terms / conditions of grant, if applicable

38
Outside Activities--Disclosure Requirements

• Yearly (April 30)
• All forms of outside activities
• of a full-time employee
• that involve a time commitment at the expense of
  an employees primary responsibilities to the
  University must be disclosed
• to immediate supervisor

39
Failure to Disclose

• Failure to disclose and manage conflicts of
  interest and/or commitment may subject the
  employee to
• Sanctions / Discipline
• Possible legal actions.

40
Disclosure reports

• Reports should be
• written
• simple statement of what is being done
• for whom
• what level of compensation

41
Disclosure reports

• Supervisor must certify there is no conflict of
  commitment or interest.
• Certification is required prior to an employee
  engaging in any such activity. (p. 7, par. b)
• Rule gives example
• extensive activities for professional
  organizations and associations

42
Disclosure Report

• Rationale Full-time employee is hired to work
  full-time for the University
• If employee is going to work outside, such work
  may conflict with his commitment to perform his
  full-time University duties, Supervisor must
  approve it.

43
Disclosure Report

• Request may be denied
• Unrelated to Universitys mission and/or
  employees duties
• Too much time away from University duties
• Request may be approved
• No conflict of commitment

44
Example

• UA Judicial Affairs Officer is asked to give a
  presentation at a conference for a national
  Judicial Affairs org. She estimates that it will
  take about 5 days to prepare the materials. The
  org. will not pay her for her time or travel.
• What should Judicial Affairs Officer do?

45
Analysis

• Talk to immediate supervisor
• Related to UA Mission / Job?
• professional development?
• Level of Commitment / Resources?
• Time of year, etc.
• Supervisor must decide whether or not to approve
  the expenditure of time and money.

46
Same Example

• The org. liked the presentation so much that they
  want UA Judicial Affairs Officer to conduct a
  series of quarterly workshops on drafting
  Student Codes of Conduct. The org. is willing to
  pay Judicial Affairs Officer 500 per workshop
  and cover her travel expenses.
• Can Judicial Affairs Officer accept?

47
Analyisis

• Make complete disclosure to immediate supervisor?
• Conflict of commitment?
• UA work or personal consulting?
• No double dipping
• Cant get UA salary and
• 500 fee
• If no conflict of commitment, perhaps she can do
  some of this work by using vacation leave

48
Rule of Thumb

• Make immediate disclosure to immediate supervisor
• Carefully examine all the facts
• Depends on the totality of the circumstances

49
Improper Compensation Double Dipping

• No public servant shall knowingly solicit or
  accept and no person shall knowingly promise or
  give to a public servant compensation over and
  above his salary from his public employer
  additional compensation from other sources to
  perform his public employment.
• (R.C. 2921.43) 
• Criminal Penalty
• 1st degree misdemeanor
• Public servant is disqualified from holding
  public office / employment
• in Ohio for 7 years

50
Pursuit of a degree

• Employee pursuit of a degree, when presenting a
  situation in which a possible conflict of
  interest or conflict of commitment could
  reasonably thought to exist requires prior
  approval by the employees immediate supervisor.
• (Conflict of Interest Rule, Page 7, Par. 21)

51
Example

• Full-time employee in Residence Life is pursing a
  Masters degree. One of his classes is scheduled
  at the same time he is supposed to be working.
  Employee unilaterally decides to skip lunch and
  work an extra hour to make up the time.
• Permissible?

52
Analysis

• Employee needs to get prior approval from his
  immediate supervisor.
• So there is no misunderstanding, good idea to get
  it in writing.

53
Conflicts involving University contracts

• University employees may not negotiate or enter
  into contracts involving the University unless it
  is within the scope of their employment
• (Page 6, 19)
• Delegated contract signature authority

54
Contract Signature Authority

• Rule of Thumb If you dont know whether you
  have contract signature authority, dont sign
  contracts.
• Penalties
• Possible UA discipline
• Potential personal liability
• (Outside scope of employment)

55
Example

• A local high school group wants to rent the GSC
  as place to hold its after prom. The group
  presents a letter agreement to the Assoc. Dir. of
  the GSC.
• Can she sign it?

56
Analysis

• No.
• After checking with supervisor for input, the
  letter is sent to OGC for legal review, insurance
  review, etc.
• Ultimately, if acceptable, it would be executed
  by Dir. Of Purchasing or VP for Business
  Finance.

57
Summary

• Cant solicit or accept things of value
• Cant authorize a contract or use authority to
  secure authorization of a contract for self,
  family, business associates
• Cant use University resources (human material)
  for any purpose unrelated to mission of
  University

58
SummaryContinued

• Cant make employment decisions (hire, supervise,
  discipline, etc.) affecting family members
• Cant disclose confidential information during or
  after public employment
• Disclose outside activities get supervisors
  approval

59
Summary--Continued

• Cant receive additional compensation for
  performance of official duties
• If you are taking classes during work hours, get
  supervisors prior approval
• Cant sign contracts unless you have contract
  signature authority

60
Practical Considerations

• Use common sense
•  Be aware of the red flags
• Avoid the appearance of impropriety
•   When in doubt, ask your supervisor
• Take the High Road