Conflict of Interests

A. Gifts, Extra Compensation, or Other Benefits

This section A summarizes Conflict of Interest Act prohibitions, except as otherwise noted.  Employees with questions or inquiries regarding these Gift limitations are encouraged to contact University Counsel.  

For purposes of this policy, gifts and benefits made to or conferred upon the university for the benefit of the professional activities of a particular employee are considered to be a financial interest of the employee.[1]

1. Prohibitions Applicable to All University Employees. Under state law, university employees may not accept:

• or solicit anything of value for performing their jobs[2], except the compensation paid by the university in accordance with the Policy on Compensation;[3]
• directly, or indirectly, any Gift valued at over $100, from any one source, singularly or in the aggregate over the course of any given calendar year (provided that Gifts of less than $25 each do not count towards the $100 total);[4]
• any money, Gift, service, loan, or professional opportunity, etc. that reasonably tends to or is designed to influence employees in the performance of their university jobs;[5]
• any business or professional opportunity when they know there is a reasonable likelihood that the opportunity is being afforded the employee to influence the employee in the performance of their W&M work;[6]
• or offer anything of value for helping a third person obtain a job or a contract with a Virginia governmental or advisory agency, including any Virginia institution of higher education; or [7]
• a Gift or benefit from someone who has interests in the employee’s university work, where the timing, frequency, or nature of the Gift or benefit would give rise to questions of impartiality or the appearance of using the employee’s office or position for private gain; [8]
• directly or indirectly, any Gift from any lobbyist or any principal, employee, or agent of any principal. [9]

In addition, under Executive Order Number 2 (2014), no Immediate Family Member of any employee shall:

• Solicit anything of value or accept, directly or indirectly, any gift from any lobbyist or any principal, employee, or agent of a principal (as "lobbyist" and "principal" are defined in Virginia's lobbying law ).
• Accept, directly, or indirectly, any Gift valued at over $100, from any one source, singularly or in the aggregate over the course of any given calendar year (provided that Gifts of less than $25 each do not count towards the $100 total).

2. Additional Prohibitions on Employees Required to Complete Statements of Economic Interest. In addition to the prohibitions in Section 1 above, any employee who is required to file a statement of economic interest (see Section C, below) is prohibited from accepting, soliciting, or receiving any single gift with a value of more than $100 or any combination of gifts with an aggregate value of more than $100 within any single calendar year from a lobbyist, lobbyist’s principal, or a person or entity who is, or who is seeking to become, a party to a contract with William & Mary, except to the extent permitted by Section 2.2-3103.1 of the Code of Virginia.  

3. Exceptions:   Executive Order Number 2 (2014) defines gifts to exclude 14 items, including items that are donated to charity (without taking a charitable contribution), offers of certain tickets, admission or passes, financial aid normally awarded, and certain prizes or awards. 

B. Use of University Resources and Confidential Information; Use of University Name

1. University Resources. Employees may not use any university-funded or -supported resources for non-university purposes. University-funded or -supported resources include university facilities, administrative offices, work product, results, materials, property, records, or information developed with university funding or other university support. 

Exceptions: Employees may make occasional personal use of university resources that does not (1) interfere with job performance or (2) waste university resources, in compliance with the Acceptable Use Policy and, if applicable, the Policy on External Paid Employment.  An example of a permissible personal use of university resources would be using your office and university-provided computer on the weekend to work on a novel.  An example of an impermissible use would be using your office printer/copier to make 200 copies of a poster for a candidate for local government whom you are supporting or your child’s 200 page school project. 

Employees with questions about use of university resources should seek advice from their supervisor or unit head.  The Conflict of Interest Committee may also be able to provide information.

2. Confidential Information.  Employees may not use confidential information obtained because of their positions at William & Mary for the employees’ own economic benefit, nor shall they authorize access to such information. University faculty and staff should be wary of consulting arrangements through which they may risk sharing confidential or proprietary information. Employees must comply with the Data Classification and Protection Policy and the Acceptable Use Policy.

3. University Name.  Employees shall not use the university’s name in a manner that may imply that the university is associated in some way with the employees’ external activity or personal interest. Mere identification of the university as one’s employer is permitted, provided that such identification is not used in a manner that implies sponsorship or endorsement by the university

C. Statements of Economic Interest and State Training

Under State Law and Executive Order Number 2 (2014) certain university employees are required to complete and file with the State statements of economic interest.  In these statements, employees are required to disclose certain financial interests, including financial interests of members of their Immediate Family (see definition of Personal Interest).  Completed statements of economic interest disclosures are available upon request to the public and subject to review by the university. 

Employees are advised that if a particular financial or other interest is prohibited by the Conflict of Interests Act or other applicable policy or law, disclosing that interest does not cure the violation. An employee who has a conflict of interest (under any provision of this Policy) must report the situation to the Conflict of Interest Committee for review and take any other action required by law or policy.  

Employees required to file statements of economic interest are also required to complete training provided by the State. 

Further information about these filing and training requirements is provided online through the Office of Compliance & Equity Statement of Economic Interest webpage.

D. Transactions on Behalf of the University, Including Procurement, Hiring and Contracting

Employees generally may not participate in awarding, negotiating, reviewing or approving a financial transaction (including but not limited to purchases, contracts, and subcontracts ) involving the university and an entity in which the employees or members of their Immediate Family have a Personal Interest. This prohibition applies to contracts for goods and services, including (for example) entering into a contract for services by hiring a contractor.  In some situations, an employee may participate in such a transaction if he or she discloses the interest and obtains certain approvals (See Appendix B). [10] See Sections (E) and (F), below, for additional restrictions on hiring.

Employees who have responsibility for procurement transactions may not solicit, demand, accept, or agree to accept from a bidder, offeror, contractor or subcontractor any payment, loan, subscription, advance, deposit of money, services or anything of more than nominal or minimal value present or promised, unless consideration of substantially equal or greater value is exchanged.[11] There are also restrictions on such employees accepting an employment offer from a bidder, offeror, or vendor.[12] 

Employees must also have been delegated signatory authority under the Contracting and Signature Authority Policy.  Additional information related to procurement procedures is available from the Office of Procurement.

Questions or conflicts situations relating to procurement should be taken to the Director of Procurement.

E. Conflicts Arising from Family Relationships

For the purpose of this Section E, “relatives” and “family” should be construed broadly to include any relation by blood or marriage who generally would be considered a family relation.  This would include Immediate Family members as well as children, siblings (half or full), first cousins, aunts and uncles, in-laws of spouses or children, nieces and nephews, and grandchildren and grandparents. 

1. Employment of Relatives. To avoid the appearance of nepotism, applicants for staff positions will be requested to disclose any family relationship with a current William & Mary employee. Human Resources will review the disclosure and take appropriate steps to ensure that the university employee has no involvement in the hiring process.  If it is not practicable to avoid all involvement or if there is an appearance of nepotism (for example if the current university employee is within the same unit or if the current university employee is an executive), Human Resources will bring the matter to the Conflict of Interest Committee for assistance in review and management.  

If an Immediate Family member is a finalist for the position, University Counsel must review the situation to determine whether Board of Visitors approval or other management steps are required.[13]

2. Other Conflicts Arising from Family Relationships. Family relationships between two employees or between an employee and a student may create a conflict of interests if the employee is in a position of authority with respect to the other employee or student, or if the employee has authority over a particular transaction or process involving the other employee or the student.  For example, an investigator would have a conflict of interest conducting an investigation of his wife, and a department head would have a conflict of interest reviewing a performance evaluation regarding his son.  

The employee in the position of authority who has a conflicting interest of this nature (or who anticipates such a conflicting interest arising), must disclose the situation to his or her supervisor.  The supervisor, in consultation with Human Resources or other appropriate office(s), is responsible for ensuring that appropriate steps are taken to manage the conflict.  For example, the supervisor  may assign a co-worker to conduct the particular transaction.  The Conflict of Interest Committee may also provide advice and assist in reviewing conflict management plans. 

See also Section F.

F. Consensual Amorous Relationships

Employees may not give unfair, special treatment to another employee or to a student. Romantic or sexual relationships may create a conflict of interest or the appearance of such a conflict. 

1. Prohibited Relationships. The university prohibits sexual or romantic relationships between

• faculty and undergraduate students,
• faculty and certain graduate students,
• employees (faculty or staff) and those employees that they supervise. 

For more information including the process for reporting prohibited relationships and for requesting an exemption, see the Policy on Consensual Amorous Relationships (Faculty Handbook).

2.  Relationships Requiring Management Steps.   Sexual or romantic relationships between an employee and second employee may create a conflict of interests if the second employee is in a position of authority with respect to the first employee or a particular transaction or process involving the first employee.  For example,

• an auditor would have a conflict of interest auditing his spouse or the office in which his spouse works.
• an HR administrator would have a conflict of interest reviewing the compensation of an IT employee whom she is dating.
• an Accounts Payable technician would have a conflict of interest reviewing a reimbursement request made by her sister, who works in Facilities Management.

G. Hiring Students or Employees for Personal Services, and Other Contractual Relationships

Financial or contractual relationships between employees and students, or between employees and their supervisors, may also create a conflict of interest.  Examples of situations that could create a conflict of interest are:

• An employee hiring a student interning in his or her office to serve as a caretaker for his children or other members of his family.
• An employee doing yard work for his supervisor.

H. Promotional Activities at Work

Solicitation in the workplace, during working hours, is not permitted, unless it is part of your university employment. This includes:

• Collecting contributions or pledges or donations for any purpose or interest, other than those sanctioned by the university (CVC, fund raising for university programs)
• Selling or promoting goods or services
• Collecting signatures on petitions
• Conducting membership drives.

I. Conflict of Commitment

This conflict arises when an employee’s external professional activity (whether paid or not) or external employment is so time or energy demanding that it would interfere with the employee’s ability to meet his or her responsibilities to the university.

1. Paid External Employment. External paid employment is defined as any outside activity (e.g., consulting, teaching, research which is beyond the normal scope of employment, training, or service) that is undertaken for compensation by faculty, executive, professional or other exempt employees with full-time appointments.

The first obligation of employees is to fulfill their duties to the university. External paid employment must not interfere with this obligation. In order to ensure than external paid employment does not dilute an employee’s capacity to fulfill university obligations or commitments, or create any conflicts of interest, all exempt staff must request prior written approval in order to engage in external paid employment.  Exempt employees are those staff who are paid on a salaried basis and are not subject to the minimum wage and overtime provisions of the Fair Labor Standards Act.  Professional employees are typically exempt employees.  For further information, see the Classification Policy. 

Exempt staff must receive final approval in writing by the Vice Provost for Research (See Appendix C). Prior to seeking this approval, unit supervisors, or departmental and higher administrators must certify that all terms and conditions for paid external activities have been met. See the External Paid Employment Guidance

2. Unpaid External Activities.  The university generally encourages professional affiliations and activities traditionally undertaken by university employees, such as service to professional associations, presentation of lectures or papers, participation in seminars and conferences, and membership on advisory boards of non-profit organizations, or that are associated with not-for-profit activities, provided they do not conflict or interfere with the timely and effective performance of the employee’s responsibilities to the university. Employees must seek approval to use significant university resources in support of these types of activities except as provided in Section B of this policy.  Employees should discuss significant external professional activities with their supervisors, to avoid overcommitment.

J. Conflicts Arising in Research Activities

1. The university’s Policy on Financial Conflict of Interest applies to any faculty or employee who is an investigator on organized research supported by the university, or externally funded research grant or contract involving William & Mary, and to any employee who propose to involve undergraduate or graduate students in his or her proposed outside employment. Under the policy, the faculty or staff member must review the policy and, in some situations, complete a disclosure form and receive advance approval for the activity. 

2. Additional approvals and oversight apply to those individuals involved in certain types of federal funded research. In 1995 the U.S. Public Health Service (PHS) including the National Institutes of Health (NIH) and the National Science Foundation (NSF) enacted Code of Federal Regulations 42 CFR 50 for promoting objectivity in research. The goals of these regulations are to manage, reduce or eliminate financial conflicts of interest when faculty, students and other university employees are involved in federally-funded research. To assist in accomplishing these goals, universities are required to develop policies to comply with this regulation and to inform Investigators of such policy and to require prior to submission of applications to PHS by Investigators that procedures required by the policy are completed.

For purposes of the university Financial Conflict of Interest Policy, research grants and research contracts are treated as one and the same, with the university as the entity administering the research and individual employees of the university responsible for the design of the design, conduct, and/or reporting of the research. Prior to submitting grant applications, investigators should contact the Office of Sponsored Program for assistance in complying with the university Policy on Financial Conflict of Interest and, if required, completing the Financial Conflict of Interest Procedure.