Conflicts of Interest or Commitment
We will avoid both actual conflicts of interest and the appearance of such conflicts, and devote our primary professional allegiance to the University and its mission of teaching, research, and public service-
This means that each member of the campus community
- Does not engage in outside activities that interfere with University duties
Perspective: A Real World Illustration
A December 2005 St. Petersburg Times (Florida) newspaper article reported on the president of a public university located in Florida, who planned to serve as an investor in and director with a proposed new bank.
When the president's involvement with the proposed bank was disclosed, critics pointed out that she might one day have to vote on a risky loan to a corporation that financially supports the university. Or that her bank duties would distract her from her university position.
In an Oct. 31 letter to the chairman of the university's board of trustees, the president said she would spend half a day each month on bank business. She also said the banks outside directors did not intend to pay themselves any cash fees during the first three years in business.
University and bank officials say they have no problem with her new role. "I see it as a huge positive that she can be in touch with folks that maybe she hasn't met before that can help her in her capacity as a university president," said a university trustee, who is a founding director and investor at the proposed new bank. "I highly supported it."
A university spokesperson noted: "You could probably come up with 1,000 hypotheticals. The bottom line is that she has an obligation to ensure that it is not a conflict of interest, and she has said that she will do that."
The president, whose contract with the university allows her to sit on two corporate boards, will invest $135,000, according to an application filed with the Florida Office of Financial Regulation.
According to a recent survey by the Chronicle of Higher Education, half of all public university presidents in the United States sit on the board of at least one for-profit company. So do many university faculty members. Not every president takes the opportunity.
A president at another Florida university does not serve on any for-profit boards. His contract would require him to seek trustee approval before doing so.
Another president of a west Florida university, who said he has never been asked to sit on a corporate board, sees nothing wrong with it. "Because universities teach business ethics and things like that, I think it's actually a good thing to have a university president on the board," he said.
Last Revised 5/23/2006