University of California, Irvine Gifts and Conflict of Interest

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2. 2 Communicating the University’s 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.

3. 3 State and Federal Laws The Regents of the University of California Office of the President UC Irvine Chancellor

4. 4 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/contractor doing business with the University.

5. 5 Policies on Gifts and Conflicts of Interest State law - State of California’s Political Reform Act requires that all government employees—including those of the University—disqualify 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.

6. 6 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.

7. 7 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.

8. 8 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.”

9. 9 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.

10. 10 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.

11. 11 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.

12. 12 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 University’s mission and an individual’s private interests.”

13. 13 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.

14. 14 An employee offers her co-workers discounts on Alaska cruises through her husband’s travel agency. A former UCI employee is contracted to drive a campus shuttle after he had recently negotiated the UCI contract for such services.

15. 15 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

16. 16 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 University’s name (unless authorized) to lend weight or prestige to sponsorship of a political party, cause, or commercial enterprise.

17. 17 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.