Conflicts of Interest and Commitment

Scope

This policy applies to all “Covered Individuals”—i.e., all Indiana University employees and Investigators (see definition of “Covered Individual” below).

This policy addresses three (3) categories of individual conflicts—Conflicts of Interest (COI); Financial Conflicts of Interest in Research (FCOIR); and Conflicts of Commitment (COC).

In the event of a conflict, this policy shall supersede all campus, school and college, program, department, center, institute, and unit policies on any core or regional campuses of Indiana University. These units may institute policies that are more restrictive than this policy, but they cannot be less restrictive.

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Policy Statement

This policy is designed to: (1) ensure that members of the Indiana University community adequately disclose potential Conflicts of Interest or Conflicts of Commitment that could put them or the university at risk; (2) provide guidance to prevent individuals and the university from engaging in decisions or actions that could compromise or appear to compromise impartiality due to personal, financial, or professional interests; and (3) ensure that members of the Indiana University community comply with the Principles of Ethical Conduct. This policy is essential in maintaining transparency, trust, and ethical standards and is intended to address both perceived and actual conflicts, and support unbiased and ethical decision-making in Purchasing, Research, Employment, and all other university activities.

Nothing in this policy shall be construed to permit any activity that is prohibited by law, even if an actual or potential conflict of interest has been disclosed.

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Reason for Policy

As a public flagship university, Indiana University encourages its Covered Individuals to engage in External Activities to both advance their professional development and to advance the mission of the university. This policy supports those activities by providing a framework to avoid ghost employment, promote objectivity in research, ethical behaviors in purchasing and financial transactions, and address other conflict of commitment concerns when engaging in those activities.

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Procedures

1. DISCLOSURE AND PRE-APPROVAL OF EXTERNAL ACTIVITIES
   1. EXTERNAL ACTIVITIES
      1. Prior Approval of External Activities Required. Covered Individuals must obtain, as applicable, unit and institutional approval prior to engaging in any new or significantly changed External Activity. 
      2. Requesting Review of External Activities. To request review of a new or significantly changed External Activity, Covered Individuals must submit a Pre-Approval Request Form for review.  The Pre-Approval Request Form should be submitted at least thirty (30) days prior to the proposed start of the activity.
      3. Review and Approval of External Activities.Unit Approvers are responsible for providing initial review of proposed External Activities for university employees. Unit Approvers review the proposed activities to ensure they do not negatively impact the Covered Individual’s ability to carry out their Uuniversity Responsibilities and are appropriate to be carried out as an External Activity (i.e., are not activities that should be conducted by the university under contract instead). Review by other offices of the university, such as IU Research, Human Resources, and University Compliance, may also be required depending on the nature of the proposed External Activity. 
      4. Guidance.Please see theDisclosure Guidance maintained by the University Compliance Office for more detail on the process for review, timing of review, and examples of the types of activities that must be disclosed as External Activities. 
   2. ANNUAL DISCLOSURE
      1. Annual Disclosure Required. In addition to submitting a Pre-Approval Request Form when required, Covered Individuals who engage in any activity or have any interest or relationship that may constitute a Conflict of Interest or Conflict of Commitment must complete a Disclosure Form at least annually. Additionally, Covered Individuals who are employed by the university in an exempt position must complete a Disclosure Form at least annually regardless of whether they have any potential conflicts to report.
      2. Disclosure Updates for Significant Changes. Covered Individuals are required to submit an updated Disclosure Form whenever there is a significant change in information already reported. 
      3. Review by Unit Approvers. Unit Approvers are expected to review annual and updated Disclosure Forms within sixty (60) days of submission. 
   3. PROHIBITED EXTERNAL ACTIVITIES
      1. The university prohibits participation in certain foreign talent recruitment programs. See RP-11-012: Research Security. 
      2. Promotional, Sales, or Marketings Speaking Engagements. Investigators may not present at programs designed solely or predominantly for an external entity’s promotional, sales, or marketing purposes when the presentation is topically related to their university Responsibilities. For non-promotional presentations allowed under this section, the Investigator must retain complete control of the content of the presentation, unless otherwise required by applicable regulations, e.g., FDA regulations.

B. CONFLICTS OF COMMITMENT

1. A potential Conflict of Commitment exists when an employee’s external relationships or activities have the possibility (either in actuality or in appearance) of interfering or competing with the university’s educational, research, or service missions, or with that Covered Individual’s ability or willingness to perform their University Responsibilities.
2. Full-time, tenure-track academic appointees shall be permitted to spend, on average, one non-weekend day each week, not including official university holidays, during the period of appointment on outside professional activities. Activities engaged in under this paragraph must still be disclosed as External Activities. All other individuals must perform External Activities in a manner that does not conflict with their University Responsibilities.
3. A Vice President, or campus Chancellor, Provost, or Dean may designate a Unit sponsored event for which staff may receive one paid day (up to 8 hours) per calendar year to volunteer and provide community service for a designated non-profit organization(s), that meets the criteria under Indiana Code (IC 35-44.1-1-3). For more information regarding staff volunteer requirements please visit Human Resources.
4. In compliance with Indiana law (IC 35-44.1-1-3), Ghost Employment is prohibited.
5. Covered Individuals shall not use any resource that has a Material Cost to the university (facilities, supplies, equipment, or other resources) for External Activities. For more information, please see IT-01: Appropriate Use of Information Technology Resources.
6. Under UA-23: Intellectual Property: Copyrightable Works and UA-24: Intellectual Property: Inventions and Patents, the university owns certain intellectual property developed by Covered Individuals. These policies further require that Covered Individuals disclose the development of said intellectual property to the university. Failure to make such disclosure does not negate the university’s ownership interest.

C. CONFLICTS OF INTEREST

1. Covered Individuals shall not use their university position to secure personal financial benefits for themselves or anyone with whom they have a Familial or Personal Relationship. Conflicts of Interest must be avoided where possible and otherwise disclosed and managed pursuant to this policy.
2. Disclosures for Specific Contracts or Purchases
   1. When a Covered Individual or someone with whom the Covered Individual has a Familial Relationship or Personal Relationship has a Financial Interest, whether existing or proposed, related to a specific procurement transaction or set of transactions, the Covered Individual must consult with the Office of Procurement Services prior to any final action on the purchase or contract. The Office of Procurement Services will then, in consultation with the Chief Compliance Officer, review the situation, and the Chief Compliance Officer shall facilitate the submission of a disclosure statement, if required by Indiana state law (IC 35-44.1-1-4), to the Secretary of the Board of Trustees. Within 15 days following final action being taken on the purchase or contract, the Secretary of the Board of Trustees must file the disclosure electronically with the State Board of Accounts.
   2. No Covered Individual may participate in the selection, award, or administration of a contract (i.e., vendor transaction or subaward) if that person has a real or apparent Conflict of Interest, and may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts.
   3. All Covered Individuals authorized to conduct purchasing activities and influence or affect the process or outcome of any expenditures shall adhere to the highest degree of ethical standards. No Covered Individual authorized to conduct purchasing activities shall engage in or permit any illegal or improper purchasing practice.
   4. All professional purchasing employees, fiscal officers, and their delegates who are authorized to conduct purchasing activities shall adhere to the National Association of Educational Procurement (NAEP) Code of Ethics. However, adherence to the NAEP Code of Ethics, does not supersede the expectation and obligation that all Covered Individuals are to operate and make purchasing decisions based upon university procurement contracts that have been negotiated to provide for an enhanced overall value to the university and are enforced by University Procurement Services.
   5. Any Covered Individual having knowledge of any questionable procurement practices shall immediately report this knowledge to the Associate Vice President of Procurement Services.
3. Nepotism
   1. Situations constituting Nepotism are prohibited unless a Nepotism Management Plan approved by University Compliance is in place. Employees shall not be appointed or transferred to a position that creates a potential Nepotism situation without an approved Nepotism Management Plan. See also: UA-22: Employee Relationships involving Students.
   2. Examples of influence in the context of Nepotism or potential Nepotism include, but are not limited to, hiring, promotion, supervision, evaluation, and determination of academic progress, salary, or working conditions. All situations in which one person in a familial or personal relationship controls, in whole or in part, a funding source that is used to compensate the other member of the relationship fall under the definition of Nepotism, even if a formal supervisory relationship does not exist.
4. Gifts and Gratuities
   1. Gifts, Gratuities, or Benefits provided to Covered Individuals or those with whom they have a Familial Relationship or Personal Relationship may constitute a Conflict of Interest if the acceptance thereof would violate the university’s Principles of Ethical Conduct.
   2. The University Compliance Office maintains guidelines for use by Covered Individuals and their supervisors in determining whether a Gift, Gratuity, or Benefit may be accepted.

D. FINANCIAL CONFLICTS OF INTEREST IN RESEARCH (FCOIR)

1. Investigators shall comply with all applicable laws, regulations, and university procedures pertaining to FCOIR, including Federal FCOIR Regulations and FCOIR Management Plans.
2. An FCOIR may arise when the Investigator or Investigator’s spouse or domestic partner, dependent, or any other family or household member that the Investigator is aware may hold a Significant Financial Interest that is related to the Research.
3. The FCOIR Committee has the responsibility and authority to evaluate and manage potential Conflicts of Interest that may impact the objectivity of Research. The FCOIR Committee evaluates disclosed interests, assessing the level of risk they pose. Risks may include compromised research integrity, biased decision-making, or reputational damage. The FCOIR Committee is responsible for determining how a conflict can be managed and whether disclosure to federal agencies is required. The FCOIR Committee, or its designee, is also responsible for fulfilling the federal public disclosure requirements of managed FCOIR and ensuring Investigators have received appropriate FCOIR training.

E. Administrative expedience requires that this policy list a small number of Responsible University Offices. However, in recognition of the broad scope of this policy, those Responsible University Offices will establish and maintain a working group of other impacted university offices, meeting on an ad hoc basis, but not less frequently than annually, to discuss proposed future policy changes.

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Definitions

Capitalized terms used in this policy shall have the meanings ascribed to them in this section.

Conflict of Commitment(COC): When a Covered Individual’s external relationships or activities have the possibility (either in actuality or in appearance) of interfering or competing with the University’s educational, research, or service missions, or with that Covered Individual’s ability or willingness to perform their University Responsibilities.

Conflict of Interest (COI): When a Covered Individual’s private interests and University Responsibilities are at odds or may appear to be at odds.

Covered Individual: Any person who is either (1) employed by the university including faculty and academic appointees; student academic appointees; and staff and part time employees; or (2) an Investigator (see below definition).

Disclosure Form: The form maintained by IU Research for the purpose of collecting pertinent information related to potential Conflicts of Interest and Conflicts of Commitment.

External Activity: Any professional activity other than University Responsibilities that is based upon or utilizes professional knowledge, experience, and abilities of the Covered Individual that relate to their university employment. External Activities may be compensated or uncompensated and include involvement with any person, trust, organization, enterprise, government agency, or other entity that is not an entity associated with or under the control of Indiana University.

Notwithstanding the foregoing, performance of services for IU-affiliated entities, such as the IU Foundation and IU Health, Eskenazi, and VA hospitals or physician practice plans;

Additional examples of activities that are not considered External Activities is maintained in the Disclosure Guidance document.

Familial Relationship: A relationship between two individuals by blood, adoption, marriage or domestic partnership to the following degrees: parent, child, brother, sister, uncle, aunt, niece, nephew, first cousin, grandparent or grandchild, spouse, domestic partner, step-parent, step-child, step-brother, step-sister, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law or the equivalent for individuals in a domestic partnership. Note: this list of relationships is not to be considered an exhaustive list; other close, personal relationships between two individuals could be considered on a case-by-case basis to be Familial Relationships for purposes of this policy.

Financial Conflict of Interest in Research (FCOIR): A Significant Financial Interest that could directly and significantly affect the design, conduct, or reporting of Research, as determined by the FCOIR Committee. (See 42 CFR §50.603.)

FCOIR Committee: The Committee with the primary function to evaluate and manage potential FCOIR.

FCOIR Management Plan: An agreement that is designed to identify, manage, and mitigate any personal, financial, or professional interests that could bias or influence an individual's Research. An FCOIR Management Plan may only be required by the FCOIR Committee.

Federal FCOIR Regulations: Federal regulations, including  and 45 C.F.R., Part 94, setting out obligations regarding FCOIR.

Financial Interest: Anything of monetary value accepted or owned by an individual whether or not the value is readily ascertainable, other than interests held in an investment vehicle such as a mutual fund or retirement account in which the owner does not directly control investment decisions. Examples of Financial Interests include, but are not limited to: 

• payment for participation in External Activities (e.g., salary, consulting and other fees, gifts, honoraria, etc.);
• ownership of (or an option to acquire) stock, shares, or other types of equity interests;
• income arising from stock, shares and other types of equity interests;
• income received from royalties (e.g., for sale by volume of products, textbooks, etc.);
• income received from commercialization of intellectual property (e.g., for licenses, options, or other revenue generating activity); or
• sponsored or reimbursed travel.

Gift, Gratuity, or Benefit: Any payment, gift, invitation to entertainment venues, travel, room or housing, meals, transportation, and any other such item of value whereby the individual sustains personal gain from its acceptance.

Ghost Employment: When:

1.  A public servant knowingly or intentionally:
   1. hires an employee for the governmental entity that the public servant serves; and
   2. fails to assign to the employee any duties or assigns to the employee any duties not related to the operation of the governmental entity.
2. A public servant knowingly or intentionally assigns to an employee under the public servant's supervision any duties not related to the operation of the governmental entity that the public servant.
3. A person employed by a governmental entity, knowing that the person has not been assigned any duties to perform for the entity, accepts property from the entity.
4. A person employed by a governmental entity knowingly or intentionally accepts property from the entity for the performance of duties not related to the operation of the entity.

Ghost employment is a Level 6 felony under Indiana state law (see IC 35-44.1-1-3).

Investigator: Any person, regardless of title or position, who is responsible for the design, conduct, or reporting of Research conducted at the university, with university resources, or otherwise under the auspices of the university.

Material Cost: A calculable cash equivalent for an asset belonging to the university.

Nepotism: The supervision of or influence over an individual by another individual with whom they have a Familial Relationship or Personal Relationship. All situations in which one person in a Familial Relationship or Personal Relationship controls, in whole or in part, a funding source that is used to compensate the other member of the relationship fall under this definition, even if a formal supervisory relationship does not exist.

Nepotism Management Plan: A management plan implemented by the University’s Chief Compliance Officer that ensures the avoidance of supervision or influence in instances of potential Nepotism.

Pre-Approval Request Form: The form maintained by IU Research for the purpose of collecting pertinent information related to requests for approval of External Activities by Covered Individuals. See: LINK.

Personal Relationship: A romantic or intimate relationship.

Research: A systematic investigation or inquiry adding to the general body or application of knowledge. For purposes of this policy, Research additionally regards any activity for which funding is sought and/or received through a grant or cooperative agreement, or research collaboration agreement, regardless of funding source, such as a research grant, career development award, center grant, individual fellowship award, contract, infrastructure award (construction, renovation, equipment, etc.), institutional training grant, program project, or research resources award. The term also includes all work involving human subjects requiring Institutional Review Board submission.

Significant Financial Interest (SFI): A Financial Interest meeting any of the following criteria:

• With regard to any publicly traded entity, when the value of the Financial Interest received from the entity in the current or prior calendar year, when aggregated, exceeds $5,000.
• With regard to any non-publicly traded entity, when:
  • the value of any remuneration received from the entity in the current or prior calendar year, when aggregated, exceeds $5,000; or
  • when the Investigator, or the Investigator’s spouse or dependents, holds any equity interest (e.g., stock, stock option, or other ownership interest).
• With regard to intellectual property rights and interests (e.g., patents, copyrights), when the intellectual property is (1) licensed or optioned, and (2) has generated income/revenue of $5,000.00 or more.

Unit: The division, school, or college to which a Covered Individual reports. Vice Presidents, Deans, and their equivalents may designate Units within their organizations for purposes of this policy. (e.g., a Dean may designate an academic department as a Unit.)

Unit Approver: The individual(s) appointed by a University employee’s Unit to review and recommend approval or disapproval of proposed External Activities. Unit Approvers shall be individuals who are sufficiently familiar with unit employee’s University Responsibilities to be able to make an informed decision with regard to potential conflicts posed by proposed External Activities.

University: Indiana University.

University Responsibilities: A university employee’s professional duties and responsibilities on behalf of the university.  For faculty members, this includes teaching, service, research, administrative duties, and other duties officially assigned to the faculty member by the university, as well as well-recognized professional activities and affiliations traditionally undertaken by faculty where the faculty member is professionally representing the university. Any activity meeting this definition of University Responsibilities is not an External Activity as defined by this policy.  More information can be found in the Disclosure Guidance document.

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Sanctions

Violation of this policy may result in disciplinary action, up to and including termination of employment. Violations of this policy may also result in violations of other university policies, including, but not limited to, ACA-30: Research Misconduct and BOT-15: Academic Appointee Responsibilities and Conduct. Covered Individuals are reminded of their obligations under the university’s Principles of Ethical Conduct.

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History

This policy is a consolidation of the following policies:

The Gifts and Gratuities section of this policy was updated on January 5, 2020.

The Nepotism section of this policy was updated on August 25, 2020. 

The Faculty and Staff Disclosure section of this policy was updated on July 16, 2021.

Updates to clarify qualifying events for paid volunteer leave for Staff employees were made on July 8, 2022.

The Conflicts of Commitment and Ghost Employment section of this policy for Faculty and Staff and Part Time Workers was updated on March 20, 2023.

Non-substantive updates to office names and position titles were made on May 19, 2023.

Revisions were approved by the University Faculty Council on April 23, 2024 and by the Board of Trustees on June 14, 2024.

Update Responsible Office in June 2025.

Substantive revisions in December 2025.

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