[The following was approved on April 21, 1995, in accordance with provisions set forth in SIU Board of Trustees 2 Policies C.3.e.]
Introduction
Non-university professional activities for reasonable periods of time and for personal remuneration (normally through traditional consulting arrangements) generally enhance professional development and scholarship to the mutual benefit of the participants and the university. Such activities, whether public or private, when they complement and enhance the professional, job-related skills of the employee or when they constitute a public service, are seen to promote the objectives of the university and are, therefore, encouraged. The following procedures implement an Illinois law requiring university faculty and, by extension, all employees to obtain written approval before engaging in remunerated research or consulting services for outside persons or organizations. The provisions of this policy are further designed to describe the type of non-university relationships that generally carry a potential for abuse, to prevent conflicts between the university interests and an employee's private interests, and to avoid non-university commitments that are likely to interfere with the performance of the individual's responsibilities to the university.
General Principles and Prohibitions
All full-time employees are required to give the university their primary professional loyalty and to arrange their financial interests and other non-university activities so as not to conflict or interfere with their commitment to the university. All employees must be alert to the possible effects of their non-university activities on the objectivity of their decisions, on the fulfillment of their obligations to the university and its students, and on the discharge of the university's responsibilities to the general public.
Employees should refrain from engaging in any non-university activities that interfere with the proper discharge of their university duties, nor should they engage in business, accept employment outside the university, or otherwise engage in any non-university activity when such business, employment, or activity creates a conflict of interest or a conflict of commitment as hereinafter defined.
A conflict as prohibited by this policy may occur as a result of either a conflict of interest or a conflict of commitment. A "conflict of interest" generally encompasses any situation wherein an individual employee influences university business, research, teaching or other decisions in ways that lead or could lead to any form of personal financial gain for the individual or his/her family, or that gives or appears to give improper advantage to others to the detriment of the university. A "conflict of commitment" encompasses any situation wherein non-university activities undertaken by the individual employee are sufficiently demanding of the individual's time and attention as to interfere with assigned duties or with his/her responsibilities to students or the university. Relationships and circumstances that may constitute a conflict prohibited by this policy include, but are not necessarily limited to, the following situations:
When an employee directly or indirectly solicits or receives for personal benefit or the benefit of a family member any gift, gratuity, favor, loan or other thing of personal value from any external source as a condition, either expressed or implied, for influencing university business, research, teaching, or other decisions. This provision shall not be construed as limiting the solicitation or receipt of honoraria or other similar payments recognized as appropriate or customary in the university setting in connection with the performance of job-related activities, provided, however, that such honoraria or other payments are disclosed to the university and approved in advance in accordance with procedures hereinafter set forth.
Job-related activities are defined as
activities that are expressly delineated in the individual's job description, or
activities clearly implied by the job description, including activities that fall within the general scope of the individual's job description and are consistent with the goals and mission of the university.
Examples of job-related activities for which honoraria or other similar payments may be accepted include authored manuscripts, workshops, seminars, editorships, editorial board service, and invited lectureships for which university employees customarily receive honoraria or other similar payments.
When an employee participates in any contractual negotiations or recommends or approves any undertaking on behalf of the university with any individual, firm, partnership, association, or corporation with whom the employee has a contract for future employment or with whom the employee is negotiating concerning such employment.
When an employee uses his/her position of employment with the university for any purpose which is motivated by, or gives the appearance of being motivated by, the desire for personal financial gain or financial gain by a family member. This provision is designed to prohibit any situation where it appears that an employee could exploit the title and/or authority he/she holds with the university to obtain an improper personal advantage for him/herself or any other university employee.
When an employee undertakes any non-university activity of any nature whatsoever, if such activity is sufficiently substantial or demanding as to interfere, or appear to interfere, improperly, with the fulfillment of the individual's responsibilities to the university.
When an employee (or firm, partnership, association, or corporation, of which he/she is the owner or principal owner or major officer or primary employee) holds any financial interest in any contract for the purchase of goods or services by the university, unless such purchase is deemed essential to university operations and is approved by the chancellor (or designee), in accordance with the "Joint Purchasing Rules Governing Procurement and Bidding at State Systems Universities in Illinois"; or when a member of the immediate family of an employee, or a firm, partnership, association, or corporation of which he/she is the owner or principal owner or major officer or primary employee contracts for the purchase of goods or services with the university, unless such purchase is deemed beneficial to university operations and is approved by the chancellor (or designee) and such approval is filed with the purchase order or contract, in accordance with the "Joint Purchasing Rules Governing Procurement and Bidding at State Systems Universities in Illinois."
When an employee or the spouse of such individual holds any personal equity holdings, options, or other financial interest (direct or indirect) in any outside business or activity that would be affected by the outcome of any research, consulting, or other services to be performed by the individual on behalf of the university. This situation does not include research, consulting, or other services for which there is established university oversight following full disclosure of the interest and university approval; it also does not include blind trust, diversified mutual funds, or other financial interest over which the individual employee, his/her spouse, and/or dependents have no discretionary control.
When an employee, with administrative, advisory, supervisory, or purchase authority, has personal equity holdings, options, or other financial interest (direct or indirect) in any outside business or activity that would be affected by the outcome of any research, consulting, or other service to be performed by an employee within any unit of the university over which the employee exercises, or is authorized to exercise, supervision, administration or control. This situation does not include research, consulting, or other services for which there is established university oversight following full disclosure of the interest and university approval; it also does not include blind trust, diversified mutual funds, or other financial interest over which the individual employee, his/her spouse, and/or dependents have no discretionary control.
When an employee uses the university's classrooms, research laboratories, and/or other academic and general administrative facilities for personal and private financial gain. This prohibition shall not apply to job-related activities. The use of university facilities and property is specifically governed by 6 Policies of the Board of Trustees of Southern Illinois University, C (Use of University Property), and the Carbondale campus policy on "Regulations Governing the Use of University Personal Property."
When an employee involves his/her students or students under his/her supervision in non-university activities. To avoid potential conflicts between a student's academic interests and an employee's non-university interests, no employee shall hire or directly supervise a student in outside business activities while simultaneously serving as the student's adviser, supervisor, or as a member of that student's thesis or dissertation committee without the prior written approval of the chair of the student's academic unit.
When a full-time employee, during his/her period of annual service, engages in outside employment, consulting, or other professional activity, engages in a regular business, or contracts for or accepts anything of value in return for research or consulting services other than for Southern Illinois University Carbondale, without the prior written approval of the appropriate vice chancellor or provost (School of Medicine).
Disclosure and Prior Approval
A full-time employee planning to engage in any non-university employment, business, professional activity, or any job-related activity that will produce non-university income may be required to complete and submit through appropriate administrative channels the Annual Disclosure Report of Proposed Non-University Activities and Financial Interests seeking approval for such activity and explaining the nature of the proposed activity. This report must be completed if the total gross annual income is expected to exceed $1,000 and will derive from activities that would reasonably appear to directly affect and/or be affected by the employee's university responsibilities.
The chair or director of the unit to which the individual employee is assigned, and the dean, as appropriate, shall review and evaluate all proposed non-university activities before recommending approval or disapproval. Disclosure reports must be filed annually in the case of ongoing activities.
All disclosure reports requesting approval for any non-university activity generating total gross annual income exceeding $5,000 shall be forwarded to the appropriate vice chancellor or provost (School of Medicine) for final approval or disapproval. The recommendations of the chair, director, and dean shall be advisory to the vice chancellor or provost (School of Medicine). Approval by the appropriate vice chancellor or provost (School of Medicine) must be obtained before the individual engages in the proposed non-university activity. Individuals assigned to those units reporting directly to the chancellor must obtain appropriate administrative approval and the approval of the chancellor before engaging in any proposed non-university activity.
As a general rule, any proposed non-university activity that is inconsistent with the general principles set forth in this policy or which falls within the general conflict provisions set forth above in subsection C under General Principles and Prohibitions will not be approved. An exception for approval of any activity otherwise referenced in subsection C under General Principles and Prohibitions of this policy may be made, however, in those situations where it can be demonstrated that
the actual or potential conflict is so insignificant and inconsequential that it will not in any way compromise the objectivity of the individual's performance of duties and obligations to the university; or the actual or potential conflict of interest may be satisfactorily managed via university oversight; and
approval of the proposed activity has been granted in accordance with this policy.
In any such case the employee is expected to fully reveal the conflict or potential conflict in the disclosure report and to request that the proposed activity be approved by exception.
A decision on the part of the vice chancellor or provost (School of Medicine) disapproving any proposed non-university activity may be appealed by the employee in accordance with the applicable grievance procedure. Individuals assigned to those units reporting directly to the chancellor may seek review of the chancellor's decision by filing an application for appeal with the Executive Secretary of the Board of Trustees, in accordance with VI Bylaws of the Board of Trustees of Southern Illinois University 2.c.
Annual Report
Each employee who, during the period of his/her university appointment, has engaged in approved non-university activities must complete and submit an Annual Report of Approved Non-University Activities and Financial Interests to the chair or director of his/her unit at the end of the fiscal year (June 30) in which the activity occurred.
Related Laws and Policies
This section references, for information purposes, several Illinois laws and university policies that concern potential conflicts between an employee's private outside interests and his/her university responsibilities or that might apply in evaluating the propriety of a particular non-university interest or activity.
"An Act relating to research or consulting services by members of the faculty of state-supported institutions of higher learning," 110 Ill. Comp. Stat. 100/1 et seq. This statute, enacted in 1969, requires all full-time faculty members to obtain written approval before engaging in outside research or consulting for remuneration, and requires an annual statement of the amount of actual time spent on such activities.
Governmental Ethics Act, 5 Ill. Comp. Stat. 420/1-101 et seq. Paragraph 4 A-101(f) of this statute requires certain administrative employees to file an annual disclosure of economic interests with the Secretary of State.
Political Activities: State Employees, 5 Ill. Comp. Stat. 320/1 et seq. Section 2 of this act generally regulates political activity by employees subject to recognized merit principles of public employment, and prohibits such employees' participation in political activities during regular working hours.
Use of University Property: 6 Policies of the Board of Trustees of Southern Illinois University, C and the SIUC Regulations Governing the Use of University Personal Property. These policies govern the use of university property and prohibit the use of university property for private purposes.
University Statement on Nepotism: This policy establishes guidelines for all employment situations involving persons related by blood and marriage when both are employed at SIUC.
Policy on Patents and Copyrights: This policy governs ownership and use of inventions, discoveries and certain copyrightable works developed within the scope of an employee's duties to the university or developed through the use of university facilities or resources.
Compensation Policy for Continuing Education and Internal Consulting Activities: This policy establishes an annual maximum amount of extra compensation an employee may receive from the university for off-campus instructional activities and for participation in credit-free and internal consulting activities.
"Joint Purchasing Rules Governing Procurement and Bidding at State Systems Universities in Illinois." These regulations implement the Illinois Purchasing Act, 30 Ill. Comp. Stat. 505/1 et seq., and govern the purchase of all goods and services for the university.
