1.1 University conflict of interest is an extremely difficult subject, for it touches on many different, but related, topics. Conflicts can be divided into two basic categories. The first covers what many people traditionally associate with the term conflict of interest--opportunities for inappropriate personal gain during the pursuit of official duties. The gains might be financial, but other forms of benefit (power, political advantage, etc.) might also be involved. An important function of conflict of interest procedures is to clarify the types of commercial relationships outside of normal university business that are appropriate between supervisors, faculty, other researchers and their staff subordinates, students and other parties, and when those relationships should be disclosed and in some cases discouraged or disallowed.

6.3 Business Relationships with Subordinates

When a supervisor enters into a business relationship with a subordinate outside the purview of sponsored research, a conflict could arise concerning potential coercion. Most business or consulting relationships are routine, acceptable and should be encouraged. Some types of contractual, business relationships are more serious and need more detailed disclosure and may be prohibited. An example of a relationship that may be prohibited, and that must be disclosed and reviewed by the Conflict of Interest Coordinator, is a partnership that makes the student (or subordinate) a co-owner or officer of the business, where the differential in power puts the student (or subordinate) in an unfair bargaining position and compromises the advisor's (or supervisor's) primary responsibility to the University.

Adopted by Senate: May 14, 2001