CHE BOARD MEMBERSHIP

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University of California, Irvine Gifts and
Conflict of Interest
Catherine ReynoldsAdministrative Policies Office
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Communicating the Universitys Values
Standards of Conduct

• Policies, procedures, CCRs, regulations,
  protocols, bylaws, commandments, directives,
  standing orders, laws, guidelines, instructions,
  conventions, standards, statutes, bulletins,
  edicts, codes.online ethics training.

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Sources of Authority

• State and Federal Laws
• The Regents of the University of California
• Office of the President
• UC Irvine Chancellor

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Policies on Gifts and Conflicts of Interest

• University of California
• UC Business and Finance Bulletins and
  Presidential policies state that University
  officers and employees (and near-relatives)
  should not solicit or accept any personal favor,
  gift, gratuity, or offer of entertainment
  directly or indirectly from a vendor/supplier/cont
  ractor doing business with the University.

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Policies on Gifts and Conflicts of Interest

• State law
• - State of Californias Political Reform Act
  requires that all government employeesincluding
  those of the Universitydisqualify themselves
  from participating in decisions in which they
  have a personal financial interest.
• The Fair Political Practices Commission (FPPC)
  works with the University to assure that
  government employees perform their duties free
  from any bias caused by their own financial
  interests. Designated employees must disclose
  acceptance of gifts and gratuities.

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Key Points Gifts

• Designated employees may accept gifts totaling
  420 maximum per year, but must file an annual
  disclosure with the State of California.
• All other employees cannot accept gifts, unless
  they are nominal marketing tokens.
• Hospital employees cannot accept nominal
  marketing tokens.

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What is a nominal marketing token?

• Acceptable personal gifts are marketing tokens
  (pencils, mugs, notepads) or holiday food baskets
  that are shared with the department.
• Accepting any other kind of personal gift may
  cause legitimate concerns of favoritism.
• Employees may not accept
• Tickets to athletic events
• Meals from company representatives
• Trips paid for by suppliers
• Gifts of alcohol
• Discounts based on employment with the
  University.

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Health Care Vendor Relations Policy, 2008

• Recent research shows that certain health care
  vendor activities allowed under the Political
  Reform Act, such as the provision of gifts of
  nominal value, may affect provider behavior and
  give the appearance of favoritism.

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Key Points Conflict of Interest

• Employees should avoid situations where there is,
  or there appears to be, a conflict between
  professional allegiance and personal interest.
• Conflict of interest may occur in
  employee-vendor relationships and are
  prohibited as stated in UC Business and Finance
  Bulletin BUS-43.
• Even if certain activities are not governed by
  specific policies, integrity should guide
  conduct. Professionalism and sound judgment
  should prevail in all relationships.

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Employee-Vendor Relationships

• An employee-vendor relationship exists when
• A University employee acts as a vendor to sell
  (or rent) goods or services to the University.
• A near-relative of a University employee acts as
  a vendor to sell (or rent) goods or services to
  the University.
• Spouse, Child, Parent, Brother, Sister,
  Son-in-law,
• Daughter-in-law, Father-in-law, Mother-in-law,
• Brother-in-law, Sister-in-law, and any
  Step-relative
• The near-relative of a University employee owns
  a 10 or greater interest in a company doing
  business with the University, and the University
  employee has an influence over the purchasing
  decision.

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Employee-Vendor Relationship

• A former University employee acts as an
  independent contractor earlier than
• Two years from the date of separation to perform
  work related to contracts, in which they engaged
  in any part of the decision-making process
  relevant to the contract.
• One year from the date of separation, to perform
  work on a contract, if they were employed by that
  department in a policy-making position in the
  same general subject area.

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UC Ethics and Standards of Conduct

• University of California
• Statement of Ethical Values
• Standards of Ethical Conduct
• Outside professional activities, personal
  financial interests, or acceptance of benefits
  from third parties can create actual or perceived
  conflicts between the Universitys mission and an
  individuals private interests.

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Examples of conflict of interest

• A employee proposes that her nephew provide
  architectural services for a new building.
• An employee in a position to influence the
  selection of a landscape designer for University
  work also hires the designer to provide services
  for her home.

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Examples of conflict of interest

• An employee offers her co-workers discounts on
  Alaska cruises through her husbands travel
  agency.
• A former UCI employee is contracted to drive a
  campus shuttle after he had recently negotiated
  the UCI contract for such services.

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Example of conflict of interest

• An employee accepts tickets to an athletic or
  entertainment event from the representative of a
  company that supplies building materials to the
  University.
• Accepting a gift can create a conflict of
  interest
• by giving the appearance of favoritism

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To reduce your chances of a COI, do not

• Engage in any business, or employment in another
  organization, that may interfere with your
  primary responsibilities and professional
  allegiance to the University.
• Engage in personal business with, or employment
  by, an organization that competes with, or is a
  supplier to, the University.
• Loan or borrow money from any customer or
  supplier.
• Own or lease any property in which, to your
  knowledge, the University has an active or
  potential interest.
• Use the Universitys name (unless authorized) to
  lend weight or prestige to sponsorship of a
  political party, cause, or commercial enterprise.

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The Final Points

• Even though a conflict may not technically
  exist, University employees must avoid the
  appearance of such a conflict.
• No unethical practice can be justified because
  it is "customary" outside the University or
  because it serves other worthy goals.
• By keeping your private and professional
  activities separate, both you and the University
  are protected against charges of favoritism by
  other public or private entities.