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8. Conflict Of Interest


Principle


As a land-grant institution with a strategic plan focused on learning, discovery, and engagement, Iowa State University employees traditionally interact with individuals outside the university. ISU is committed to ensuring all appropriate parties are fully aware of any personal, professional, contractual, or purchasing conflicts that may influence collaborative efforts. Internal procedures exist to manage and resolve potential conflicts of interest and commitment.


Guidelines


For the ISU policy on Conflict of Interest, please see section 3 and section 10 of the Office Procedure Guide ( www.adp.iastate.edu/vpbf/prod/docs/opg/opg.htm ) and/or section 8.2.3 of the Faculty Handbook ( www.provost.iastate.edu/handbook/2004/ ).


A potential conflict of interest occurs when a faculty or staff member is or may be in a position to influence the university’s business, research, or other decisions in ways that could lead to personal gain. This potentially occurs when a faculty member contracts research to his/her university lab from his company, when faculty consult with a company on research they are also conducting in their lab, or employ graduate students to work for the company (see below).


ISU employees must take appropriate measures to document potential conflicts of interest. Annually or when a potential conflict arises ISU employees must fill out a form notifying the university. Examples of potential conflicts include, having an equity interest (ownership) by the ISU employee or the employee’s immediate family in a company that does business with ISU, or a research involvement with a company that sponsors ISU research in the ISU employee’s lab and pays the ISU employee personally to be on a scientific advisory board.


For example, very early in the process of a faculty/staff member or a member of his/her immediate family starting a new company that may do business with ISU, the department head(s), the associate dean(s) of the appropriate college(s) and the Office of the Vice President for Research and Economic Development, should be notified. A conflict-of-interest form must be filled out and filed with the Office of the Vice President for Research and Economic Development, identifying the nature of the conflict. A disclosure meeting will be held to determine proper operating procedures.


The initial meeting will discuss the nature of the conflict and will determine if an oversight committee is necessary.


The three most common types of conflict of interest are:


  • Contracting Research Back To Your Own Lab. The most common type of conflict is the situation where a faculty or staff member starts a company based on a technology he/she developed and then wants to form a collaborative research agreement between the company and his/her lab at ISU. A faculty or staff member cannot act as both the company representative and the ISU principal investigator on collaborative research agreements – this is a conflict of interest! Instead, a different grant administrator is chosen as the principle investigator for the research. In many cases, the department head acts as the grant administrator.

  • Employing Graduate Students in Your Company. Graduate students can be employed in the ISU employee’s company; however, a faculty member cannot serve as both the major professor and the supervisor of the student in the company’s organization.

  • Sales To ISU. Another situation that causes a potential conflict occurs when a faculty or staff member is involved with a company that wants to sell a product or service to ISU. Board of Regents’ approval is required in those cases and is coordinated through Purchasing.

Another type of Conflict of Interest can occur if you begin discussing similar sponsored projects, including confidential information, with two or more companies about similar efforts. In this situation, it is likely that something will be learned from one company or project that would be of benefit to the other company. Because the companies are likely in competition with each other, this will most likely result in negative consequences for both the university and the companies.