Conflicts of Commitment and Interest Policy

I. Scope

This policy applies to all employees. 

II. Policy Statement

All employees of the Indiana Wesleyan University (“IWU” or the “University”) community are expected to conduct the affairs of the University in a manner consistent with their primary commitments to IWU. The performance of their professional responsibilities must be free from real or apparent bias motivated by self-interest. Accordingly, employees are expected to evaluate and arrange their external interests and commitments to avoid compromising their ability to carry out their primary work at the University. As a rule, Conflicts of Commitment & Interest, as defined in this Policy, (herein referred to as “Conflicts” or a “Conflict”) should be avoided or resolved through the exercise of individual judgment and discretion. Relationships that may provide opportunity for bias must be disclosed and appropriately managed.

III. Reason for the Policy

IWU is committed to its mission of developing students in character, scholarship and leadership. Developing students in character means each employee must embody and model high ethical and moral behavior while they conduct the affairs of the University and engage in external interests and commitments.

The University recognizes that the pursuit of its mission may be enhanced when employees participate in certain external activities. This Policy establishes the principles and requirements to assure that an employee’s primary and existing commitments to the University, and the objective performance of their professional responsibilities, are not adversely affected by external commitments or other financial interests.

This Policy also exists to maintain compliance with Internal Revenue Service requirements that tax exempt organizations like IWU avoid the appearance or actuality of private benefit to employees who are in a position of substantial authority.

IV. Procedures

These procedures are instructive on the more common and most obvious conflicts. They are not intended to be an exhaustive list of all possibilities. The first and most important line of defense against Conflicts is the employee exercising good judgment and transparency.

A. University Contracts

An employee may not review, approve, or administratively manage a contract when the contract is between the University and an entity in which the employee has a financial interest, or when the contract involves a member of the employee's family, or when a member of the employee's family has a financial interest in the contract. Employees with potential Conflicts must disclose the situation to their respective Cabinet member and must remove themselves from any involvement in the contract. Additionally, the department contemplating the contract should make every attempt to avoid the transaction with the related party. If avoiding the related party transaction is not in the best interests of the University, the department must consult with Risk Management & Legal Affairs for further review and counsel.

For example, an employee’s brother-in-law owns a local construction company. The employee has a role in hiring contractors for University building projects and is therefore in a position to steer business to their brother-in-law’s company. The employee must disclose the potential conflict and remove themselves from involvement in awarding and managing any contracts with the brother-in-law’s company.

B. Employee Business Ventures

Any employee involved in a business venture as owner, operator, or major investor must be alert to the possibility that a Conflict may arise. Generally, there is the potential for a real or apparent Conflict where an opportunity exists for the employee’s interest in the business to influence the employee’s professional decisions in their role at the University. Even if the entity does not do business with the University or there is no reasonable expectation of a future business relationship with the University, the employee remains responsible for avoiding all Conflicts.

Additionally, employees may not require students or employees, especially those they supervise, to purchase products or services for which the employee will financially benefit. The potential Conflict is obvious, and employees are encouraged to avoid this scenario or consult their respective Cabinet member for an independent evaluation.

C. External Professional Activities

Employees may engage in external professional activities (paid or unpaid) so long as such activities do not unduly interfere with the employee’s time and energy commitment to their University responsibilities and do not otherwise create a Conflict.

For example, a Conflict of Commitment arises when an employee is involved in an external teaching, consulting or business initiative that requires significant attention during the same time the employee is fulfilling their University responsibilities. A Conflict can also arise when a full-time faculty member engages in an external professional activity that exceeds the weekly allowable time permitted under the Faculty Handbook.

D. Gifts

Employees may not accept gifts or accommodations of any nature when doing so could possibly interfere with the impartial discharge of duties to the University, or reflect adversely on that employee’s integrity or reputation of the University. Employees should be especially mindful about the impropriety of gifts or accommodations from vendors proposing to do business or renew their relationship with the University.

E. Direct Competition

Employees may not engage in direct competition with the University either personally or through another entity.

Such a circumstance may arise when an employee solicits a research award for which the University is a competitor or would have been a competitor had the employee properly acted as an agent of the University.

F. Use of University Resources

Consistent with existing University policy, it is inappropriate for any employee to use University resources (intellectual property, supplies, equipment, facilities, and/or human resources) to support their personal endeavors and external professional activities.

G. Disclosure Requirement for Certain Employees

Effective implementation of this Policy requires the full disclosure of employee interests that might conflict with the best interests of the University. Upon hire, on an annual basis, and at any time when a situation requires disclosure, employees with a classification level 16 & up and all full-time faculty must disclose certain relationships and activities that may create a Conflict through the form made available by this Policy. Items to be reported include business relationships, external professional activities and outside employment. The University respects the privacy of employees and does not require the disclosure of personal or financial information that is not connected with the employee’s responsibilities at IWU.

H. Plan to Resolve Conflicts

After an employee makes the required disclosure, the University will determine whether additional information is needed and whether further management or elimination of any Conflict is required. If required, the University will develop a management plan in consultation with the employee, the employee’s supervisor, if necessary, and the employee must abide by the terms of that plan.

I. Additional Consultation & Reporting Concerns

If a situation raises questions about Conflicts, employees are urged to discuss the situation with their supervisor, their respective Cabinet member, or a member of the Risk Management & Legal Affairs team.

Any member of the University community may report known or suspected Conflicts confidentially or anonymously to the University using EthicsPoint, the University’s ethics and compliance reporting hotline.

V. Definitions

A. Conflict of Commitment: A Conflict of Commitment arises when an employee’s involvement in an outside activity substantially interferes with their responsibilities to the University.

B. Conflict of Interest: A Conflict of Interest occurs when employees are in a position to influence a decision on policy or purchases where they might directly or indirectly receive financial benefit or give improper advantage to family or other associates.

VI. Sanctions

Employees determined to be in violation of the Policy are subject to sanctions up to and including termination of employment.

VII. Related Information

This Policy is meant to complement and enhance, and does not replace, other existing University policies. Existing related policies include:

A. From the Employee Handbook: Employee Solicitation Policy; Employment of Family Members, Standards of Conduct; Technology & Acceptable Use; Personal Business; Solicitation/Distribution Policy; Telephone; Use of University Buildings.

B. From the Faculty Handbook: Professional Ethics; Outside Employment.

C. From the Policy Warehouse: Grants & Sponsored Programs Management Policy; Invention and Patent Policy.