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Faculty Conflicts of Interest and Commitment

 

A. Identification of Potential Conflicts of Interest and Commitment

Potential conflicts of interest and commitment are inevitable where faculty are engaged, as they ought to be, with actors and institutions outside the University. These potential conflicts are not necessarily problematic. In fact, faculty members are encouraged to engage in outside activities and relationships that enhance the University’s mission. It is nevertheless important that faculty disclose any potential conflicts of interest or commitment as soon as they arise so that they can be evaluated and, if necessary, managed or eliminated.

A potential conflict of interest arises when external ties might appear to bias a faculty member’s judgment in performing his or her University obligations. A potential conflict of commitment arises when a faculty member engages in external activities or assumes external commitments that might appear to compromise their ability to fulfill the responsibilities of his or her University position. (See Standard Practice Guide (SPG) 201.65-1.)
 

In this document, the term faculty applies to University employees normally considered faculty, including tenured and tenure-track faculty, lecturers, research faculty (research scientist and research professor tracks), clinical faculty members, librarians, and curators. This policy applies to academic department chairs, directors, deans, associate provosts, and others who are members of the UM-Dearborn faculty.
 

1. Potential Conflicts of Interest
Examples of potential conflicts of interest include, but are not limited to, the following:

  • Gifts. A faculty member should not accept a gift of $50 or more (including gifts of services) or payment of any sort from a University student or staff member based on the employee’s faculty position. The same prohibition applies to gifts from people or institutions that contract with the University where the faculty member participates in decisions concerning that contract. Irrespective of a gift’s value or source, it is always a conflict of interest for a faculty member to accept a gift where the person or organization intends to create a quid pro quo arrangement with the faculty member.
  • Honoraria and speaker fees. Generally, a faculty member may accept honoraria and speaker fees. However, a potential conflict of commitment may arise (see Conflict of Commitment, below); if so, permission to assume the time commitment must be sought.
  • Consulting and conflicts of interest. Faculty are encouraged to consult in their area of expertise to stay abreast of current problems and technologies in their field, provide interesting and relevant case studies in the classroom, and aid Michigan businesses and not-for-profit agencies. To avoid a conflict of interest, consulting should not involve University resources or students; the faculty member should not be a principal investigator on a grant to the University from a company for whom he or she is actively consulting. The amount of time spent on consulting should be within the limits set forth in this document to avoid a conflict of commitment (see Consulting and Conflicts of Commitment, below).
  • Travel Funding. Generally, a faculty member may incur reasonable (following existing UM travel guidelines) meal and travel expenses that are reimbursable either by the University or by external organizations. However, a faculty member should not accept reimbursements of $5,000 or more from companies or institutions that contract with the University where the faculty member participates in decisions concerning that contract. Specific requirements for reporting external support for travel apply to recipients of Public Health Service research funding.
  • Royalties. Book royalties and royalties paid through the University need not be disclosed.
  • A faculty member may provide pertinent information about—but should not participate in—decisions involving the retention of the services of a business owned by the employee, a family member, or other close relation, whether faculty or staff. Under no circumstances will a faculty member have access to confidential materials surrounding the decision.
  • Procurement policy prohibits University employees from providing goods or services to the University if these goods and services are generally available from other sources. Faculty should follow all procedures, including disclosure to Procurement Services and approval by a 2/3 vote of the Board of Regents, when they or a company they have an interest in enters into a contract with the University to sell the University goods or services.
  • Faculty should not have direct dealings with students in the sale of books, instruments, lectures, notes or similar materials, except in extenuating circumstances, and then only with the approval of the dean.
  • A full-time faculty member should neither establish nor participate in a business that competes with the University.
  • Speaking on Behalf of the University. A faculty member should not claim (orally or in writing) that their unit, the University of Michigan-Dearborn, or the University of Michigan supports or endorses the mission of an external person, institution, or organization unless a formal decision to do so has been made by the relevant University body. There are circumstances in which a faculty member’s experience is relevant to expression of an opinion to public authorities. In these cases (except where inappropriate, illegal, or when it misrepresents the faculty member’s authority) a faculty member may indicate their affiliation with the University in written correspondence to public entities so long as the correspondence does not imply that the faculty member is speaking on behalf of the University.
  • Nepotism. A faculty member may provide pertinent information about but should not participate in employment decisions (including hiring and promotion decisions) involving a family member or other intimate relation, whether faculty or staff. Under no circumstances will a faculty member have access to the personnel file and other confidential material regarding such a person.

2. Potential Conflicts of Commitment
The existence of a potential conflict of commitment must be evaluated in light of the minimum time and effort requirements applicable to the faculty member in question.  

All faculty, including visiting and clinical faculty, with at least half-time University appointments owe their primary professional commitment to the University. A commensurate commitment of those faculty members’ time and intellectual energy must therefore be devoted to activities that further the University’s mission. In general, faculty obligations are determined by the Dean. To meet minimum time and effort commitments within the unit, regular tenured and tenure-track faculty, are expected to teach a standard course load each year and engage in active and productive scholarship and research. All faculty members must also fulfill administrative obligations consistent with their appointment. These include participation on assigned committees and involvement in the hiring and tenure processes; regular attendance at faculty meetings; and regular participation in student and faculty educational and collegial functions. Participation in personnel and tenure decisions includes the expectation that faculty should familiarize themselves with the candidate and their work to the extent necessary to justify a confident judgment as part of our collective decision-making process. It is particularly important that faculty participate in the hiring and promotion of candidates in fields of their expertise. For faculty employed under the terms of a collective bargaining agreement, the applicable agreement describes the expected professional commitments.
 
Even where obligations to the University are met, a faculty member may not engage in activities that compete with the University or that otherwise diminish or undermine the University’s mission. It is inappropriate for faculty, without prior approval, to divert to other entities or institutions opportunities for research, education, clinical care or financial support which otherwise might flow to the University. Uncompensated services to the community and to the discipline are consistent with service to the University and are ordinarily permitted and even encouraged if they do not interfere with fulfilling obligations to the University.
 
Other part-time faculty, including adjunct and clinical faculty, likewise owe the University time and effort commitments commensurate with their appointments.  For these faculty members to meet minimum time and effort commitments within their unit, they must teach an assigned number of hours per year and adhere to their commitment as written in their letter of appointment.  
 
With these principles in mind, examples of potential conflicts of commitment include, but are not limited to, the following: 

  • Consulting and conflicts of commitment (also see Consulting under Conflicts of Interest, above). Any work external to the University potentially raises a question of conflict of commitment. In general, however, any such work that contributes to the scholarly or educational goals of the academic unit is permitted. The Dean should be informed of all compensated external work performed by the faculty member.
  • Consulting time. “Professional work” is remunerated work related to the professional and scholarly interests of the faculty member; it includes such things as service to the discipline, private consulting, and advising outside organizations. For full-time faculty, professional work is generally permitted up to a total of 4 days a month (calculated as an average over the academic year), if that other professional work does not interfere with the minimum expectations outlined above. If there is any question about whether a particular commitment falls within these categories, or if there is any potential for interfering with the minimum expectations above, the matter should be disclosed immediately as described in Section B of this policy, below.
    • The University year (U-YRD) appointment for a University of Michigan- Dearborn faculty member generally falls within the 8-month period September 1 through April 30 of each year during which a primary professional commitment to the University is expected (payment for this contract is distributed over 12 months). Faculty who are not receiving compensation for spring/summer term(s) may accept outside commitments during the months of May through August provided the professional activity for pay is wholly performed and completed between May 1 and August 31, and does not conflict with this policy (e.g., does not create a conflict of interest).
    • Non-professional work is ordinarily acceptable only when it does not interfere with faculty obligations or impair work as a teacher and scholar.
    • Modest speaker fees and fees for writing tenure reviews need not be disclosed.
    • Note that the University’s consulting time policy does not apply to anyone who is not a tenured or tenure-track faculty member (e.g., lecturers and staff).
  • A full-time faculty member must obtain the permission of the Dean before assuming compensated teaching obligations or other time commitments in another department of the University or at another institution. Approval for funded research or other sponsored programs should be obtained by approval from the home department on the Proposal Approval Form at the time the proposal is submitted.
  • A faculty member must obtain the permission of the Dean before making any commitments to take a leave, even if it is not funded by the University.
  • Faculty members cannot hold two or more active full-time salaried positions.
  • Faculty members should not devote effort to preparing course materials for use exclusively at another university or exclusively for use in “internet teaching” outside of the University unless the material is connected with a teaching position that has been approved by the Dean.
  • A faculty member must not, for pay, give private instruction in any course offered by him or her in the University, nor, for pay, give private instruction in any other course that competes with the University, without approval of the Dean.
     
B. Disclosure, Evaluation, and Management of Potential Conflicts of Interest and Commitment

1. Disclosure of Potential Conflicts
In general, each faculty member must promptly disclose potential conflicts of interest or commitment to their Chair or Director in writing. The Chair or Director can seek advice from the Dean. In order to maintain confidentiality, conform to federal research grant requirements (for example, Public Health Service), and keep these details separate from other information requested by the University (such as annual reports), Dearborn will use the University’s web-based disclosure system, M-Inform, which can be accessed through Wolverine Access for disclosures. 

What to disclose: 
All Dearborn faculty are required to submit an annual disclosure of all compensated effort, financial interests, and sources of financial support that are related to their University responsibilities; this includes work performed for a unit of the University other than where the individual has an appointment. Reportable outside interests do not include effort or salary that are administered through the University as a sponsored project (e.g., summer salary charged to a research grant).

The phrase “related to one’s institutional or University responsibilities” means an interest, activity, or relationship that relies upon the same expertise as does one’s ability to carry out his or her University responsibilities, as well as any interest, activity, or relationship that has the potential to influence the duties that the University considers to be part of one’s work or job expectations. In this regard, “University responsibilities” means a person’s professional responsibilities on behalf of the University, such as research, teaching, professional practice, and institutional committee membership.

All external employment (for example, consulting) will also be disclosed in M- Inform; the limits of such approval and management plans will be recorded in M- Inform.

Recipients of Public Health Service (PHS) research funding and funding from sponsors that have adopted the PHS regulations must follow the Department of Health and Human Services (HHS) regulations for “Promoting Objectivity in Research.” These requirements are described in more detail in M-Inform. The submission of grant proposals and processing of awards may be delayed if an individual’s disclosure is not current.

Although time commitments and activities that are uncompensated do not need to be disclosed, certain relationships, even if uncompensated, must be disclosed. For example, volunteering to sit on a board without compensation must be disclosed if in that role you make decisions about grants made by the University.

Disclosure should be made whenever there is any question whether the activity or interest is reportable or represents an apparent or perceived conflict of interest or conflict of commitment.

When to disclose:
Dearborn faculty must provide annually in the month of July a disclosure of outside financial interests or activities over the previous year and any anticipated in the coming year (at least for the next 30 days); if there are no financial interests to disclose, there is an option to report no outside financial interests. Faculty will use M-Inform, the University’s disclosure system as described above. Each July, a new annual disclosure will be required and the disclosure must be completed by July 30.

As changes arise, the annual disclosure may need to be updated; the update should be submitted within 30 days of the change.

Disclosure will not be required for one-time speaking fees, fees for writing tenure reviews, and de minimis financial support or interests under $5,000 do not need to be disclosed.

2. Management of Potential Conflicts
Upon disclosure of a potential conflict of interest or commitment, the Chair or Director (in consultation, as needed, with the Dean) will evaluate the extent of the potential conflict to determine whether it is necessary to manage or eliminate it.  The Chair or Director may ask the faculty member to provide additional information or documentation if necessary.

In some circumstances, evaluation of the potential conflict will require consultation with and processing by central administration offices. For example, centralized processing is necessary in the following circumstances:

  • Where the disclosure involves sponsored research or technology transfer, by the Vice Provost for Research and the Office of the Vice President for Research; 
  • Where there may be a conflict between two academic units, by the Provost’s Office; and

Where the disclosure involves a purchase of goods or services, by Procurement.

In many cases, consultation with central administration offices, even when processing by those offices is not required, may help determine how to respond to a given disclosure. Examples of potentially appropriate consultation might include the following: where the disclosure involves sponsored research or technology transfer, with the Office of the Vice President for Research; where there may be a conflict between two academic units, with the Provost’s Office; where legal obligations or potential liability may be involved, with the General Counsel’s Office; and where the disclosure involves a purchase of goods or services, with Purchasing.

In response to a disclosure of a potential conflict, the Chair or Director  may, after consulting with the faculty member, determine that no action is necessary.  In other cases, the Chair or Director may decide that it is sufficient to document the disclosure and his or her determination that no further management is required.  If the Chair or Director determines that management of the potential conflict is necessary, however, they will develop a conflict management plan in consultation with the faculty member. That plan may include, but is not limited to: 

  • Disclosing the potential conflict to appropriate sources inside and/or outside the University;
  • Modifying or limiting the faculty member’s duties to minimize or eliminate the conflict;
  • Reducing the faculty member’s appointment to accommodate the outside interest or activity;
  • Securing the faculty member’s agreement to modify or suspend outside activity, use of University resources, or other activities that create the potential conflict; or
  • Prohibiting certain outside activity as inconsistent with the faculty member's obligations to the University.

3. Record-Keeping and Issues of Confidentiality and Privacy
The Chair or Director will keep a record of action on disclosures made under this policy, in part to help develop a consistent practice of treating like cases alike.  The record may be as simple as identifying the disclosure and, when no further action was required, including a notation to that effect on the disclosure description.  Appropriate records may also be maintained in the individual faculty member’s personnel file.

The Chair or Director will make all reasonable efforts to preserve the privacy and confidentiality of personal information revealed as part of this process; to that end, the Chair or Director will keep all records that include personal information about named individuals in a secure file accessible only to the Chair or Director and the Dean of the college.  Where any other faculty or staff member has a legitimate educational or business reason to access the documentation, then either the Chair or Director or the Dean may authorize access to the file and provide either copies and/or information, as may be required for the stated educational or business purpose.  If the Chair or Director or the Dean provides copies of information in the files to a faculty or staff member, they must also ask that individual to maintain the same level of confidentiality as applicable to the original information or documents. 

In some circumstances, the University is required to disclose potential conflicts to people within or outside the University. For example, if a conflict exists within the context of a federally sponsored project, the University is required both to disclose the existence of that conflict (without providing identifying information) to the federal government and to indicate whether it has managed that conflict. Also, the University may be legally required to disclose information in response to requests made under the Michigan Freedom of Information Act (FOIA).  Should any other individual have a legitimate reason to access the confidential records, whether in the context of a federally sponsored project, a FOIA request, or otherwise, the Chair or Director or the Dean may authorize access to the file, provide copies, or provide oral or written summaries. Where possible, the individual to whom the Chair or Director or Dean authorizes disclosure will be required to maintain at least the same level of confidentiality as applicable to the original information or documents.  

Any faculty or staff member who becomes aware that the Chair or Director or Dean has provided or may have provided unwarranted access to conflict documentation or information, as defined in this policy, should inform the Provost for appropriate action.  

The Chair or Director should ensure that the unit purges the documentation from the faculty member's file three years after the potential conflict no longer exists, except where University record retention policies require the unit to retain the records for a longer period (e.g., as specified in SPG 201.46).
 

C. Dispute Resolution

A faculty member may dispute any decision made in response to the disclosure or non-disclosure of a potential conflict of interest or commitment by an appeal to the Dearborn Provost. If the faculty member is dissatisfied with the Provost’s decision, they may dispute any action or decision under this policy in accordance with applicable University procedures. Sponsored research or technology transfer must be handled in accordance with processes adopted by the OVPR Conflict of Interest Review Committee. Other disputes between a faculty member and the Dean should be resolved through the normal grievance procedures. Disputes involving faculty who are subject to collective bargaining agreements will be resolved under the terms of those agreements.
 

D. Education and Training

This policy will be provided to new faculty at the time they are hired and begin work at the University. At the beginning of employment, the Provost will insure that this policy is distributed to each new faculty member.

The Provost will post this policy and remind faculty of the policy and their obligations annually.

Whenever there is a reason to think it necessary, the Dean or the Provost will remind the faculty as a whole, or individual faculty members, of the requirements of the policy.
 

E. Violations

Any failure to comply with SPG 201.65-1, its procedures, or this implementing policy may lead to disciplinary action, up to and including termination of appointment in accordance with applicable disciplinary procedures.  Possible violations that may lead to disciplinary action include, but are not limited to, the following: failure to disclose fully a potential conflict; failure to comply fully with a required conflict management plan; failure to maintain the confidentiality of conflict documentation and information; and failure to complete any required training or education regarding the policy.  Existing unit, Campus, and University procedures governing faculty misconduct will apply.
 

F. Policy Review and Revision

Each Dean will annually review all actions taken under this policy and make recommendations to the Provost regarding any needed revisions to the policy or any need for increased education. Any revisions in policy or practices will be discussed with the Deans. If the Provost determines that any of the changes he or she would like to adopt will materially change the policy, the modification will follow the procedures used to adopt the original policy. In particular, each Dean will submit any materially revised policy to their executive committee for approval, then to the Provost for further review and approval, and then to the Chancellor for formal adoption. A current version of this policy should be on file with the Provost’s Office at all times. 
 

This policy applies to all faculty of UM-Dearborn, including both full- and part-time faculty, whether classified as regular instructional, clinical, adjunct, or visiting faculty.

 

G. Governing Policies

This policy implements SPG 201.65-1, Conflicts of Interest and Conflicts of Commitment, incorporates SPG 201.65-1 in its entirety, and includes all elements required under that SPG.  Implementation of SPG 201.65-1 at the University of Michigan-Dearborn requires compliance with other University policies and procedures, including all Regents’ Bylaws and SPGs, as well as with any relevant external rules of professional conduct and applicable law. Relevant policies, procedures, rules, and law include (but are not limited to) the following:
 

  • Regents’ Bylaw 2.16 , regarding gifts to University employees;
  • Regents’ Bylaw 5.12, regarding outside employment of University faculty; 
  • Regents’ Bylaw 5.13, regarding governmental elected or appointed service;
  • Regents’ Bylaw 5.14, regarding leaves of absence;
  • SPG 201.23, regarding appointment of individuals with close personal or external business relationships;
  • SPG 201.65, regarding employment outside the University;
  • SPG 201.85, regarding special stipends for work performed for other University units, the payment of honoraria, and the payment of travel expenses;
  • SPG 500.01, 601.28, and 601.11, in particular to the extent that they address copyright and other appropriate use of University resources, such as the libraries, office space, computers, secretarial and administrative support staff, and supplies; 
  • Office of Vice President for Research (OVPR) Policy on Conflict of Interest in Sponsored Research and Technology Transfer Agreements; http://www.drda.umich.edu/policies/um/coi/OVPRCOIPolicy.html;
  • Michigan Compiled Laws § 15.321 et seq., regarding contracts of public employees with their employers.
  • Where applicable, the current collective bargaining agreement for the graduate student employee or faculty member.

In the event of any inconsistency between this policy and other University or external requirements, those other requirements will prevail.  In interpreting this policy the Dean should be attentive to preserve the principle of academic freedom of speech and thought.  In addition, policy administrators will make every reasonable effort to preserve confidentiality and protect the privacy of all parties in the course of investigating and managing a potential conflict of interest or commitment.
 

 

Policy owned by: Provost Office & Human Relations
Last Reviewed: 8/2024
Next Review: 8/2029