CPS-2 Conflict of Interest and Commitment

Policy Number: CPS-2
Effective Date: July 1, 2014

Revisions: April 27, 2021
Responsible Officer: Executive Vice President, Treasurer and Chief Operating Officer

I. Purpose

The purpose of this Conflict of Interest and Commitment Policy (Policy) is to help ensure that Drexel University (Drexel or University) operates in compliance with applicable regulatory requirements, and that the reputation, name, and integrity of the University are not compromised. The fundamental principle guiding implementation of this Policy is that no employee should have, or appear to have, any personal or financial interests, relationships, or affiliations that conflict with the interests and commitments of the University.

In conducting its affairs, the University is subject to many complex laws, regulations, and contractual obligations. For faculty and professional staff, whose broad activities are essential to the success of the University, it is important that there is cognizance of all legal and regulatory requirements associated with activities undertaken.

This Policy is intended to:

• educate employees about situations that generate potential conflicts of interest and commitment,
• clarify expectations about disclosing conflicts of interest and commitment, and
• identify means to manage, reduce, or eliminate such conflicts of interest and commitment.

This Policy is not intended for research-related conflicts of interest and commitment. The Office of Research and Innovation oversees research-related conflicts of interest and commitment. Research-related actual or potential conflicts of interest and commitment disclosed through the Annual and Interim Conflict of Interest and Commitment Disclosure process, as detailed in this Policy, will be forwarded to the Office of Research and Innovation for further processing and resolution.

This Policy is not intended for Drexel University Board of Trustees members. The Office of the General Counsel manages and oversees the Board of Trustees conflict of interest and commitment disclosures process.

II. Applicability/Scope

This Policy applies to all “Drexel Community Members” including the following:

• President, Officers, and all professional staff,
• Faculty, and
• Any other members of the University community who have been notified by the University that disclosure is required.

III. Implementation

Implementation of this Policy is the responsibility of the University Chief Compliance Officer.

IV. Administrative Oversight

The Executive Vice President, Treasurer and Chief Operating Officer is the Drexel University Officer responsible for the administration of this Policy.

V. Policy

Drexel University is committed to maintaining the highest integrity and ethical behavior in all University activities and endeavors. It is the policy of the University to require all Drexel Community Members to avoid any conflict, or appearance of conflict, between their personal interests and those of the University.

To determine whether a situation or relationship gives rise to a financial conflict of interest or commitment, Drexel Community Members must disclose all Financial Interests in or with any outside person or entity:

• engaged or involved in the delivery of goods and services of any kind to the University,
• engaged in activities which could reasonably be construed to be in competition with the University, or
• which otherwise reasonably relate to the Drexel Community Member’s University institutional responsibilities.

Conflicts of interest and commitment, however, can arise from financial and non-financial settings. Examples of situations and circumstances that may present an actual or potential conflict of interest and commitment include, but are not limited to:

1. Involvement in the hiring or direct supervision of an Immediate Family Member.

   • Example 1: A Faculty Member participates in the hiring process of their child in a Drexel department that the Faculty Member oversees.
   • Example 2: A Professional Staff Member participates in the hiring process of a consulting company that is owned by the Professional Staff Member’s sibling for a new initiative that will be sponsored by the Drexel department that the Professional Staff Member manages.
   • For more information, see Human Resources’ Nepotism/Employment of Relatives & Consensual Amorous Relationships Policy.

2. Accepting personal gifts from other Drexel Community Members or vendors.

   • Example: A Professional Staff Member chooses a particular vendor over another because the vendor promised a substantial gift to the Drexel Professional Staff Member.
   • For more information, see Compliance’s Acceptance of Personal Gifts Policy.

3. Accepting donations on behalf of the University. 

   • Example: A Faculty Member learns that a recent graduate from their Drexel program plans to make a financial donation directly to the Faculty Member for the school/college.
   • For more information, see Institutional Advancement’s Gift Acceptance Policy.

4. Making or soliciting contributions, in the name or on behalf of the University or with University funds or facilities in any form to, or in aid of any political party, group, candidate or cause.

   • Example: A Professional Staff Member makes a personal donation to a political campaign using University funds.
   • “Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.” Please visit the Internal Revenue Service website regarding the Restriction of Political Campaign Intervention by Section 501(c)(3) Tax-Exempt Organizations.
   • For more information, see Code of Conduct, Section 1.2 Lobbying/Political Activity.

5. Outside employment that affects an employment commitment to Drexel.

   • Example: A Faculty Member is offered or has a secondary appointment to teach courses at another institution of higher education during the regular academic year.
   • For more information, see the Office of the Provost’s Contract Policy, Full-Time Faculty.

6. Engaging in a romantic or intimate relationship with another Drexel Community Member.

   • Example: Two Drexel Community Members enter into a consensual dating relationship.
   • For more information, please see Human Resources’ Nepotism/Employment of Relatives & Consensual Amorous Relationships Policy.

7. Utilizing Drexel resources for personal use, gain, and/or profit.

   • Example: A Faculty Member assigns their self-authored textbooks, computer programs, or other materials to students in Drexel courses, requiring the students to pay a fee for such books, programs, materials or works.
   • For more information, see the Office of the Provost’s Contract Policy, Full-Time Faculty.

If an employee has any doubt about a situation and whether it may constitute a conflict of interest or commitment, the employee must discuss it with their Direct Supervisor to determine what action, if any, needs to be taken. Employees may also contact the Office of Compliance, Privacy and Internal Audit at compliance@drexel.edu with questions.

VI. Procedures

A situation that constitutes an actual or potential conflict of interest or commitment can arise at any time. Such situations must be disclosed before occurrence of an actual or perceived conflict, or as soon after the actual or perceived conflict exists as possible. To ensure implementation of this Policy and that conflicts are disclosed and reviewed in accordance with this Policy, the procedures noted below will be followed: 

1. Policy Communication: This Policy will be communicated, at least annually, to all Drexel Community Members under the direction of the Chief Compliance Officer. This communication shall be in writing and may be delivered electronically and/or through training. 

2. Annual Disclosures: To facilitate compliance with this Policy, Drexel Community Members must complete an Annual Conflict of Interest and Commitment Disclosure Statement (Annual Disclosure Statement) during the Annual Conflict of Interest and Commitment Disclosure Period.
   
   Instructions to access the Annual Disclosure Statement via DrexelOne will be emailed to Drexel Community Members at the beginning of the Annual Conflict of Interest and Commitment Disclosure period and will include the due date set for submission. Drexel Community Members must complete and submit the Annual Disclosure Statement before the due date set for the submission.

3. Interim Disclosures: Drexel Community Members must complete an Interim Conflict of Interest and Commitment Disclosure Statement (Interim Disclosure Statement) whenever an actual or potential conflict of interest or commitment exists, as defined in this Policy. To provide updated information related to such conflicts outside the Annual Conflict of Interest and Commitment Disclosure Period, Drexel Community Members should access the Interim Disclosure Statement via DrexelOne and complete the Interim Disclosure Statement as necessary, at any time.
   
   An employee’s supervisor may require the employee to complete an Interim Disclosure Statement whenever a situation arises that may potentially involve this Policy.

4. New Hire Disclosures: Newly hired Drexel Community Members must complete a Conflict of Interest and Commitment Disclosure within the first ninety (90) days of the Drexel Community Member’s commencement of their position. The newly hired employee must access the Interim Disclosure Statement via DrexelOne to comply with this requirement.

5. Disclosure Reviews: It is not an employee’s responsibility to determine whether a conflict of interest or commitment is ultimately found to exist, but rather it is the employee’s responsibility to promptly disclose any actual or potential conflicts. The employee’s Organization Supervisor is the Drexel Community Member responsible for reviewing and resolving, if applicable, all disclosures within their organization, school, college or department in DrexelOne within forty-five (45) days of the close of the Annual Disclosure Period, and within thirty (30) days of the submission of an Interim Conflict of Interest and Commitment Disclosure.

6. Review Recusal: In accordance with “E. Disclosure Reviews” above, Organization Supervisors designated to review and resolve disclosed potential conflicts of interest or commitment must determine if they can objectively and fairly review the disclosure or whether an actual or potential conflict may exist that would impair their ability to evaluate the potential conflict disclosed. If the Organization Supervisor or Direct Supervisor determines, due to their own personal, external or other interests, they are unable to objectively and fairly review and resolve the disclosure, they must recuse themselves and not proceed with the review of the disclosure. Direct Supervisors should immediately notify their Organization Supervisor of the need for recusal. Organization Supervisors must immediately notify the Chief Compliance Officer of the need for recusal. If recusal is needed, the Disclosure will move to the next higher administrative level. 

7. Conflict Resolution: If it is deemed that a conflict of interest or commitment exists, the Organization Supervisor will discuss the situation with the Drexel Community Member’s Direct Supervisor and suggest an appropriate resolution. The Supervisors will investigate the situation and confer with necessary personnel, including the Chief Compliance Officer, and an appropriate advisory committee, as necessary. All disclosure resolutions must be made in the best interests of the University. The Drexel Community Member making the disclosure will be notified of the resolution by their Direct Supervisor. If the employee has questions regarding their resolution, they should contact their Direct Supervisor. For information regarding appeals of resolution decision, refer to “H. Appeals Process” below. 

8. Appeals Process: Drexel Community Members may appeal a disclosure resolution decision. All appeals must be made in writing to the Drexel Community Member’s Organization Supervisor, and finally to the President. The employee’s Direct Supervisor may be consulted to make suggestions to the Organization Supervisor regarding the disclosure. The Organization Supervisor will make a final decision and document the resolution in the system. Each level of appeal shall arrive at a resolution by the reviewer within forty-five (45) days of receipt of the appeal for an Annual Disclosure, and thirty (30) days of receipt of an appeal for an Interim Disclosure. 

9. President and Senior Management: Conflicts involving the President are to be resolved by the Audit Committee of the Board of Trustees, whose recommendation may be reviewed or modified by the Board of Trustees.
   
   Conflicts involving senior management who report directly to the President are to be resolved by the President in consultation with the Chief Compliance Officer, the Office of the General Counsel, and the Board of Trustees, if deemed necessary. 

10. Perceived Conflicts By Others: A Drexel Community Member who is or becomes aware of a perceived conflict of interest or commitment involving another employee shall report the alleged conflict by filing a written notice with the Direct Supervisor of the employee potentially involved in the conflict of interest or commitment. Reasonable supporting information or materials must accompany the conflict of interest and commitment allegation. 

11. Compliance: All Drexel Community Members are responsible to comply with this Policy. The Chief Compliance Officer, or their designee, will follow up regularly with relevant Drexel Community Members and their Direct Supervisors in order to achieve full compliance with this Policy by all employees. Direct Supervisors will ensure the submission and completion of applicable Annual or Interim Conflict of Interest and Commitment Disclosure Statements.

12. Record Retention: The Chief Compliance Officer will ensure maintenance of a complete copy of all documentation resulting from disclosure statements made in compliance with this Policy, in electronic format, for a time period consistent with the University’s Record Management Policy. All disclosure statements shall be available for review by appropriate University personnel and agents including the Office of the General Counsel, and external legal advisors and auditors. 

VII. Violations

It is a violation of University policy to retaliate against a Drexel Community Member who files a report raising a perceived conflict of interest or commitment. It is also a violation of University policy to make a report or disclosure statement under this Policy in bad faith, or to know or have reason to know that such report or disclosure statements have been made.

Violations of this Policy must be immediately brought to the attention of the Chief Compliance Officer.

Drexel Community Members found to be non-compliant with or in violation of this Policy may be subject to disciplinary action, including, but not limited to, loss of merit salary pay increases and termination of employment.

VIII. Definitions

In order of usage, identified terms used in this Policy are defined as:

Drexel University Community Members includes the following:

• President, Officers, and all professional staff,
• Faculty,
• Any other members of the University community who have been notified by the University that disclosure is required.

Financial Interests means a relationship with any person or entity from which a Drexel Community Member or any Immediate Family Member derives something of value, including:

• an interest of $5,000 or more in a publicly traded entity or any interest whatsoever in a non-publicly traded entity (but excluding any interest arising solely by reason of investment in such business by a mutual fund, pension, or other institutional investment fund over which neither the Drexel Community Member nor an Immediate Family Member exercises control); or
• receipt of, or the right or expectation to receive, any income from such entity in one or more of the following forms: a consulting fee, honoraria, salary, allowance, forbearance, of technology or other processes or products, rent, capital gain, or any other form of compensation.

Immediate Family Member means the Drexel Community Member’s spouse, domestic partner, parents, children, children of spouse or domestic partner, siblings, aunts, uncles, cousins and any other individual living in the Drexel Community Member’s household.

Direct Supervisor means the individual to which a Drexel Community Member directly reports to for performance evaluation and/or administrative control.

Organization Supervisor means the individual to which a Drexel Community Member reports to organizationally. For academic areas, the Organization Supervisor means the Dean or their designee. For administrative areas, the Organization Supervisor means the Executive/Senior Vice President or designee.