A conflict of interest can be assumed to exist when an employee or someone in his/her immediate family is involved in a business relationship or arrangement, the terms of which may be inconsistent with, or appear to be inconsistent with performance of the employee's duties or exercise of judgment on the University's behalf.
A real or apparent divergence between an employee's private interests and his or her professional obligations to the University, such that an independent observer might reasonably question whether the individual's professional actions or decisions are, or could be determined by considerations of private gain rather than by potential benefit to the University mission.
To avoid such real or apparent conflicts and to avoid exploitation of an office or employee, the University maintains mechanisms by which employees are required to provide the University with information which may bear upon the employee's capacity to perform duties and exercise independent judgment on the University's behalf. Avoidance of conflicts requires constant sensitivity to the issue by all employees and a willingness to disclose potential conflicts for review and appropriate resolution in a timely manner.
Credibility and public confidence are vital throughout the university system. Any erosion of honesty, integrity or openness is injurious to the institution. The shadow of doubt can be as harmful as the conduct itself. It is with this in mind that the following policies and procedures are in place.back to top
The term "employee" is defined as any person working for, representing or acting on behalf of the University in any capacity where such representation or presumed representation has the potential to influence the direction or outcome of expenditure or exploit an employee's position for the purpose of contemporaneous financial or personal gain.
IU employees serve a public-interest role and have a clear obligation to conduct the business of the University in a manner consistent with that concept. All decisions by an employee on behalf of the University shall be made solely on the basis of a desire to promote the best interests of the University.
In case of conflicts or the appearance thereof, University personnel are expected to disclose the existence of a conflict prior to making any related decisions governing finances or expenditures of the University. Upon disclosure, it will be determined whether or not there is a potential conflict of interest.
The purpose of financial disclosure is to alert University officials to the employee’s personal interests that might be affected while they are performing their official duties. Disclosure also helps inform the public about potential conflicts of interest. It can establish the fiduciary responsibility of an employee.
It is the policy of the University that, in the event an employee of the University is considering a transaction on behalf of the University which will also involve the employee or a member of their family (spouse, parents, brothers, sisters, or lineal descendants), or an organization with which any such person is affiliated, then such employee, at first knowledge of any such transaction, shall disclose fully the precise nature of his or her interest or involvement.
Disclosure is required concerning all relationships and business affiliations which reasonably could give rise to a conflict of interest involving the University. Disclosure shall be continuously reported and kept current. Situations that involve the employee or a member of their family, while not limited to, may include the following:
Disclosure is made on a form called Conflicts of Interest Disclosure Form (PDF). A Disclosure form must be filed each year or in the event of an apparent conflict of interest. Filed forms are public documents that must be made available to anyone who requests them.back to top
Purchasing Department, Institutional Policies:
Appendix F State Statute - 35-44-1-3, Conflicts of Interest; Public Servants
University Human Resources, Personnel Policies:
University Financial Institutional Policiesback to top