5.6 Conflicts of Interest

5.6.1 Objective

To define conflicts of interests for University of Tennessee Foundation (UTFI) employees, provide applicable laws on prohibited conflicts, and provide employees and campus/unit reporting requirements.

5.6.2 General Policies

Purpose. Objectivity and integrity are essential qualities for employees of any organization. If UTFI is to carry out its mission with unquestioned credibility, its employees must maintain the highest levels of integrity and objectivity as they perform their duties. The purpose of this policy is to provide guidelines to help employees of UTFI maintain these qualities in situations that may involve a conflict of interest.

Definitions. For the purpose of this policy, an employee’s interest includes the interest of the employee’s spouse (whether or not they co-mingle assets) and the interest of the employee’s dependent children (including step and foster children). In any given circumstance, an employee’s interest also may include the interest of nondependent children and parents.

Note: A dependent child is under 24 and unmarried; a nondependent child is 24 and older or married.

1. General Principles. Employees of UTFI are expected to take all reasonable precautions to ensure that their outside interests do not place them in conflict with carrying out their duties and responsibilities as employees of UTFI. Generally, a conflict of interest exists when one of the following conditions exists;
   • An employee allows outside interests, financial or otherwise, to interfere with or compromise judgment and objectivity with respect to duties and responsibilities to UTFI and sponsoring organizations.
   • An employee makes UTFI decisions or uses UTFI resources in a manner that results in or is expected to result in:
     • Personal gain or gain for his or her relatives, financial or otherwise; or
     • An unfair advantage to or favored treatment for a third party outside UTFI.
2. State Law. Certain conflicts of interest violate state law and may result in criminal and civil penalties.

Note: Failure to report potential conflicts of interest or to follow any conditions imposed pursuant to the approval by UTFI of such activities related to potential conflicts of interest may be grounds for disciplinary action up to and including termination.

5.6.3 Examples of Conflicts of Interest

In accordance with the principles stated above, the following situations are examples of prohibited conflicts of interest; this list is not, however, an all-inclusive list of prohibited conflicts.

1. Serving as a member of the board of directors, as a consultant, holding an office or a position, or holding a financial interest in an outside entity where:
   • The employee procures or influences the procurement of goods or services from that entity for UTFI; or
   • The employee uses his or her UTFI position to obtain favored treatment for or to provide an unfair advantage to that entity; or
   • The primary business is the same for which the UTFI exists or the entity competes with UTFI.
2. Soliciting or accepting gifts, gratuities, benefits, or favors of monetary value from a person or an entity:
   • In return for influencing an employee in the performance of his or her UTFI duties; or
   • While being in a position to obtain favored treatment for or provide an unfair advantage to that person or entity.
3. Selling any products or services to UTFI while an employee or within six months after termination of active employment with UTFI.
4. Using confidential or official UTFI information in any manner that could result in personal or financial gain or that provides financial gain or an unfair advantage to a third party. Information may include proprietary data, best practices, information shared in meetings, day-to-day interactions and activities, and conversations related to advancement techniques, practices, alumni, donors, prospective donors and other constituents.

5.6.4 Employee Reporting Requirements

Employees will be asked annually to disclose outside interests on the form provided by UTFI. This form requires the disclosure of specific outside interests that may or may not result in a conflict. All employees are required to take the initiative and report in writing (e.g., memo) to their immediate supervisor any conflict of interest between their UTFI duties and responsibilities and their outside interests PRIOR to engaging in the activity or obtaining a financial interest.

1. All staff must have a completed disclosure form on file whether or not they have interests or activities to disclose. Activities include those performed while in a paid status, during compensated leave, or during professional development activities and/or leave.
2. A new disclosure is required at such time during employment when a change in an existing outside interest occurs or before a new outside interest is undertaken.
3. New employees are required to complete and file a disclosure form within 30 days of their effective employment date whether or not they have outside interests or activities to disclose.

5.6.5 Employer Requirements

The direct supervisor and UTFI officials are responsible for reviewing all disclosures to determine if a conflict of interest exists, if outside activities/interests are permitted or prohibited, or if there are conditions required to manage, reduce or eliminate conflicts or potential conflicts.

Updated: June 1, 2021