Rice University Faculty Policy No. 216-97

 

OUTSIDE ACTIVITIES OF FACULTY AND FACULTY FELLOWS

BACKGROUND

Consulting and other services to outside organizations, including industry and government, often constitute very desirable activities for faculty (and faculty fellows).* These services can provide a mechanism for enriching the professional experience of faculty and thereby broadening their background for instruction and research activities at Rice. The University also has a responsibility to help in the transformation of results of research into products, services, and processes that might become available in the marketplace. In many instances, the best means of effecting such a transfer requires active participation of researchers as advisors or consultants. Faculty members deserve to be compensated for their works, ideas, and efforts in the process.

External activities of this type must not interfere with the principal activities of faculty members related to preparing courses, teaching, counseling students, serving on committee and administrative assignments, conducting research, publishing scholarly work, or producing other creative work. Experience indicates that these activities are best carried out in an environment that encourages the free flow of ideas between participants and preserves academic freedom. However, this free exchange may be understandably detrimental to the interest of a private enterprise, thus resulting in a potential conflict of either type. Some conflicts of commitment and/or interest are common and practically unavoidable in a modern research university. It is the responsibility of deans, in consultation with their department chairs, to maintain a proper balance of University and outside activities of faculty members in their various schools.

When performing outside activities sponsored by private interests, negotiating with companies or entrepreneurs, forming a company for commercial purposes, or engaging in any other activity in which a conflict of interest and/or commitment might arise, it is the responsibility of faculty members to protect:

a. The integrity of research, scholarship, or other creative work.

b. The good name of the University.

c. The academic freedom and economic rights of fellow faculty, staff, and students.

* Research staff are defined in university policy #438-96 "Research Positions" and involvement in outside activities for this employee group is detailed in university policy #404-94, "Dual Employment and Multiple Jobs".

d. The primacy of the students educational interests. The involvement of students in research must be governed not only by the legitimate needs and objectives of the research project, but also and primarily by consideration of the students own educational goals. Faculty must not exploit the work of students or other researchers.

e. The public interest. When external funds are involved in the support of research, the University's accountability requires that the faculty demonstrate particular sensitivity to resolving any conflicts of commitment and/or interest.

The University community needs to be aware of situations that may have the appearance of a potential conflict of interest or commitment, or actually constitute a conflict of interest. In this policy statement, several common conflict of interest situations, which may be encountered by faculty and staff, are identified and procedures are established for obtaining guidance on these and other conflict of interest issues. The basic goal is to provide guidance on conflict of interest situations encountered by faculty, and importantly, to provide maximum protection for employees by instituting prior review and approval procedures to assist employees in making sound judgments on situations where there may be an appearance of a conflict of interest, and then to decide whether an acceptable conflict actually exists.

CONFLICTS OF COMMITMENT

Conflicts of commitment may arise when there are competing demands upon the time and energy of a faculty member as a result of outside activities and interests that could interfere with the faculty member's ability to meet his or her responsibilities to the University. The University expects that a faculty member's outside activities and interests will not interfere with his or her primary obligations to the University, which are teaching, research, scholarship, producing other creative work, or other obligations to the University.

Specific, universal standards for defining the proper balance are not feasible, but experience indicates that full-time faculty members have difficulty carrying out their principal activities as a faculty member if they spend more than the equivalent of one day a week on outside activities such as consulting or activities requiring the exercise of significant managerial responsibilities on behalf of an outside organization. Participation in such activities must enhance the professional development of faculty members and enhance the public recognition and prestige of the University.

Travel to professional meetings and conferences is desirable but must not conflict with the primary duties of the faculty member at the University. Where more than two successive classes will be missed by faculty travel to professional meetings, faculty should coordinate their travel, before commencing the trip, with department chairs. Refer to travel policy #806-93.

Certain activities in the public service area contribute to public recognition and enhance the prestige of Rice University as an outstanding and contributing institution. In cases where extensive service of a public nature is contemplated (e.g., a lectureship, Governmental policy committee work, service to a professional society, running for public office, etc.), the department chairs and deans should be notified and appropriate arrangements made.

For faculty receiving full-time grant and contract support any time during the year including the summer, the equivalent of one day per week for outside activities remains acceptable unless prohibited by terms of the sponsor's agreement. If questions arise about what is permitted by a particular grant or contract, clarification may be obtained by consulting with the Director of the Office of Sponsored Research.

Faculty members who cannot satisfactorily discharge their obligations to the University as a result of their outside activities should consider a part-time appointment or a leave without pay.

CONFLICTS OF INTEREST

Conflicts of interest may arise when a faculty member's individual interests interfere with his or her responsibilities to the University.

The key factors in avoiding ethical and legal conflicts of interest are personal responsibility and integrity. Rice University expects all faculty and staff members to conduct their outside activities in a manner which reflects well on themselves, their professions, and the University.

The establishment of standards of practice and performance in regard to potential conflicts of interest must be made at each divisional level with the guidance of the deans, in consultation with departmental chairs, and the approval of the provost and president. The principal means of disclosure and management of outside activities involves dialogue between the faculty and the divisional dean. Problems are best resolved at the dean's level where the expertise in the field of research, scholarship, or other creative work is the greatest, and the standards of performance and evaluation are understood. In this way, differences in divisional standards can be accommodated.

Definitions:

• Outside entity refers to any corporation, partnership, sole proprietorship, or any other organized legal entity. For faculty members in the practice of architecture, this does not include clients to whom they provide professional services.
• Significant interest means the receipt or expectation of anything of monetary value, including salary or other payment for services in excess of $10,000 by faculty members or their immediate family in one year, and including equity interests by them or their immediate family in excess of $10,000 or 5% ownership interest (this refers only to equity that is directly under their control, not that managed by a third party such as a mutual fund).
• Immediate family includes spouse and dependent children, as determined by the Internal Revenue Service.
• Use of Rice's resources does not include infrequent and incidental use, nor does it include service for which faculty members reimburse Rice.

It is impossible to enumerate all situations under which conflicts of interest may arise. The following list is meant to illustrate such situations:

a. Having a significant interest in an outside entity that sponsors their teaching or research activities that are under their control. There is a potential conflict of interest whenever a principal investigator receives more than $10,000 per year or has an equity position greater than 5% in the private company.

b. Directing the purchase of equipment, instruments, materials, services, or other items from an outside entity in which a member of their immediate family has a significant or controlling interest, without open competitive bidding. Refer also to university policy 216-97B Conflicts of Interest Related to the Purchasing of Supplies, Services and Equipment.

c. Orienting sponsored research at Rice to benefit an outside entity that has not supported the research.

d. Consulting for a government agency on a subject that could benefit an outside entity in which they have a significant interest.

e. Transmitting to an outside entity sponsored research products, results, materials, records, or information not available to the general public. (This does not preclude appropriate consulting on the basis of sponsored research results where there are no conflicting relationships).

f. Using for personal gain (or other unauthorized purposes) privileged information acquired in connection with sponsored research or other University activities.

g. Accepting gratuities or special favors from an outside entity with which the University does (or may do) business, i.e. as may be specified in (b.) above.

h. Accepting research sponsorship that is predicated on finding predetermined research results.

i. Being simultaneously involved in activities of outside entities and activities within Rice that are competing directly for government and/or private funds.

j. Making an academic or administrative decision that could result in their personal gain.

k. Simultaneously receiving outside remuneration and university remuneration for the same services or activities.

l. Involving students and staff, over whom they exercise supervisory or academic responsibility at the University, in their outside activities.

Specific requirements exist concerning potential or real conflicts of interest for faculty members submitting proposals to certain federal agencies for consideration. These faculty must file with their dean a disclosure statement annually or when a significant change results in new financial interests which might influence their research activity with either agency. Refer to Policy #332-96 for details regarding this requirement.

DISCLOSURE

The university requires annual disclosure of outside professional activities by the faculty in their annual report to the president. The University also requires annual disclosure of potential or real conflict of interest situations to the appropriate divisional dean by all faculty. Faculty will be asked when preparing their Annual Report to the President, to review their external activities. If this review indicates the potential for an actual conflict of interest, or the appearance of one (refer to a. - l. above), then a brief description of these activities must be presented to the divisional dean for review. Following review, the reports will be placed in the faculty or staff member's file in the dean's office. If there are significant changes in the external activities during the year, faculty are expected to report those changes in a timely manner.

If potential or real conflict of interest situations cannot be resolved by the dean, the matter will be referred to the provost for review. The provost may impanel a committee to assist in a review as necessary. Decisions by the provost may be appealed to the president.

Annual disclosure by the deans, vice presidents, provost, and president will be annually to the Board of Governors through the director of internal audit.

This disclosure is designed to focus attention on possible conflict of interest situations and, importantly, to provide a convenient mechanism for obtaining prior approval of outside activities following review of possible conflicts of interest by a University administrative official who does not stand to gain from the judgments that must be made. Such explicit prior approval is important to provide maximum protection for the individual faculty member and the University.

In addition, faculty with signature authority to commit external or internal funds must also comply with policy 216-95 B related to purchasing of supplies, services, and equipment.

PROPRIETARY INFORMATION

In consulting or sponsored research work, researchers may have access to proprietary/confidential information. Faculty and staff members exposed to such information are responsible for making certain that it is not divulged and these individuals, rather than the University, assume responsibility for executing any non-disclosure agreements required by a sponsor. It is also essential that proprietary relationships between various organizations with whom the faculty and staff members may interact be kept in confidence.

USE OF FACILITIES

Only in special cases may University equipment or facilities (other than the Library) be used for services to outside entities, including organizations controlled by faculty members, and then only with the explicitly written approval of the department chair and divisional dean or applicable vice president. Deminimus use of university owned personal computers authorized for home is appropriate without written approval. The Office of Sponsored Research should be contacted in cases where the equipment to be used has been purchased with Federal funds.

NAME USAGE

The simple identification of the University as the employer of a faculty member is appropriate. However, the name of Rice University must not be used for advertising purposes or endorsement of products or services by any person or any organization. In special cases, the president must be consulted concerning the use of the name of Rice University.

 

Combination of Previous Policies:

204-76: March 31, 1964

Revised 1/20/67, 8/2/71, 9/1/76

205-86: September 22, 1965

Revised: 1/12/67, 8/12/71, 10/17/86

Revised: November 29, 1990

Revised: September 3, 1997