What is Conflict of Interest?

Although the legal definition varies from state to state, financial conflict of interest basically involves any situation in which an individual exploits his or her position for personal or financial gain. This is probably the most serious type of conflict because of its visibility and the potential for damage to the reputation of the University and all concerned.

The University's Conflict of Interest Policy defines conflict of interest explicitly as follows:

> "A conflict of interest occurs when an employee compromises professional judgment in carrying out University teaching, research, outreach, or public service activities because of an external relationship that directly or indirectly affects the business or significant financial interest of the employee, an immediate family member, or an associated entity."

An obvious example, which is not allowed under University policy, is the ownership of - or a major interest in - a private firm by a faculty member who also has the decision-making responsibility in awarding a contract to that firm. Sponsorship of research involving human subjects by commercial firms in which the faculty member has a significant interest is another example of a high risk situation. However, many potential conflicts of interest can be complex and not as clearly discernible.