University Policy 4.14
Conflicts of Interest and Commitment (Excluding Financial Conflict of Interest Related to Research)

1.1 Overview

Individuals are expected to evaluate and arrange their external interests and commitments in order to avoid compromising their ability to carry out their primary obligations to the university. In the first instance, conflicts should be avoided or resolved through the exercise of individual judgment or discretion. Full disclosure of the circumstances surrounding a real or potential conflict should be made before making the commitment or initiating the activity that poses the possible conflict. Disclosure must be sufficiently detailed to permit an accurate and objective evaluation.

Failure to comply with this policy or any approved Conflict of Interest (COI) management plan will result in discipline up to and including employment termination or removal from office.

1.2 Conflicts of Interest

An individual is considered to have a Conflict of Interest when they, a member of their family, or a known business associate either:

1. has an existing or potential significant financial interest or other material interest or relationship that impairs or might appear to impair the individual's independence and objectivity in the discharge of their responsibilities to the university; or
2. may receive a financial or other material benefit from information confidential to the university.

Typically, a Conflict of Interest may arise when an individual has the opportunity or perceived opportunity to influence the university's business, administrative, academic, or other decisions in a manner implicating personal gain or competitive advantage of any kind.

Upon full reporting and disclosure of the circumstances, the university may approve a commitment or activity, provided that the conflict(s) can be managed. In many cases, the conflict(s) can be managed through disclosure and the establishment of appropriate safeguards. Circumstances that are not susceptible to effective conflicts management may be prohibited. Individuals have a duty to disclose Conflicts of Interest and to update or make disclosures when there is a change of circumstance.

In rare cases, the financial or other interests of the university itself introduces a potential for Institutional Conflict of Interest. For example, the university may hold a financial interest related to active research projects and this financial interest introduces the prospect of bias or improper influence in institutional decision-making surrounding the research activity. Such Institutional Conflicts of Interest must be managed or prevented in the same manner as individual conflicts.

1.2.1 Business Ventures

An individual involved in a business venture as owner, operator, or major investor must be alert to the possibility that a Conflict of Interest or Commitment may arise. Generally, there is the potential for a real or apparent Conflict of Interest where an opportunity exists for the individual’s interest in the business to influence the university or the individual’s professional decisions. 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 individual remains responsible for avoiding a Conflict of Commitment.

Board members and Senior Leaders may invest in Cornell startups subject to disclosure and COI management.

No Board Member or Senior Leader may hold a fiduciary position in a Cornell startup company or licensee, including serving as a board member, director, or officer of the startup or licensee. Exception: Senior Leaders with faculty appointments, like other faculty members who found Cornell startups may hold a fiduciary role in their startup for the purpose of incorporating and applying for funds in the time before funding is available to hire employees.

The investment of personal assets by any Board Member, and participation in any way in an investment of assets from a fund or company in which the member has a material financial interest to a Cornell startup company requires approval of the Board of Trustees Audit, Risk, and Compliance Committee.

1.2.2 Contracting

An employee may not review, approve, or administratively manage a contract when the contract is between the university and a company in which the employee has a significant financial interest, or when the contract is with a member of the employee's family, or when a member of the employee's family is an employee of the contractor and directly involved with activities included under the contract or has a significant financial interest in the contractor.

1.2.3 Gifts

No gifts or accommodations of any nature may be accepted by any individual when doing so could possibly place that individual in a prejudicial or embarrassing position, interfere in any way with the impartial discharge of duties to the university, or reflect adversely on that individual’s integrity or that of the university. Refer to University Policy 4.6, Standards of Ethical Conduct, for additional university principles related to gifts.

1.2.4 Grading and Evaluations

A recusal plan that effectively ensures the integrity of the grading process must be developed when a student enrolls in a course that is taught (or co-taught) by a family member or domestic partner. The recusal plan must establish a grading process that does not involve assessments rendered by the related instructor and is fair relative to how other students in the class are graded. The recusal plan must be executed by the student, the related instructor, and the chair of the instructor’s department (or equivalent).

1.2.5 Community, Civic, and Governmental Activities

The university encourages participation in community, civic, and governmental activities. As with other external engagements, employees who consider serving in elected or appointed positions on government councils, boards, and commissions should report and discuss such opportunities with their supervisors to ensure that there are no actual, apparent, or potential Conflicts of Interest or Commitments with their university duties and obligations.

1.2.6 Avoiding Nepotism

Refer to University Policy 6.14, Avoiding Nepotism.

1.3 Conflicts of Commitment

1.3.1 For All Members of the Cornell University Community

A Conflict of Commitment arises when an individual undertakes external commitments that may burden or interfere with their primary obligations and commitments to Cornell. The university expects that individuals will take appropriate steps to prevent external activities and commitments from having an adverse impact on the performance of their university duties and obligations.

1.3.2 Senior Leaders

Senior Leaders are fiduciaries, owe special duties of care and loyalty to the university as a whole, and must keep the university's interests paramount to all others.

1.3.3 Academic Staff

An academic staff member who accepts a full-time appointment with the university has a primary commitment to the university that generally includes teaching classes, being available to students and colleagues outside the classroom, serving on departmental, college, and university committees, providing clinical services (where applicable), conducting research, publishing scholarly works, and otherwise meeting the changing needs of the university. Those holding Cooperative Extension or clinical appointments have specified obligations of service to the public.

Such an appointment constitutes a full-time obligation to the university, and, with the exceptions explicitly permitted by university policies on consulting and other related professional activities, full-time faculty members must not engage in other employment.

1.3.4 Nonacademic Staff

Nonacademic staff with full-time appointments are expected to give their primary professional commitment to Cornell University. The university expects that staff members also will recognize the possibility that their external activities and commitments may have adverse effects on the performance of their university obligations and disclose any such activities.

1.3.5 Part-time Appointees

Faculty and staff members who hold part-time appointments commonly will have major obligations and commitments, not only to the university, but also to one or more outside entities. The potential for conflict may be significant. Accordingly, part-time employees are expected to exercise special care in reporting and fulfilling their multiple obligations.