QMUL Staff Conduct Policy: Conflicts of Interest and Financial Interests, Study Guides, Projects, Research of Business

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Page 1 of 20 Standards of Business Conduct Document Owner: Chief Financial Officer Recommended by Finance and Investment Committee: 21 June 2021 Approved by Council: 8 July 2021 Number of Years to Next Review: 3 Years – July 2024 Page 2 of 20 Contents Page 1 Introduction................................................................................................ 3 2 Responsibility of QMUL ............................................................................. 3 3 Responsibility of the Chief Governance Officer and University Secretary . 3 4 Responsibility of Heads of Schools/Institutes ............................................ 3 5 Guiding principle in conduct of public business ......................................... 3 6 Principles of conduct ................................................................................. 4 7 Conflicts of interest .................................................................................... 4 8 Implementing the guiding principles: ......................................................... 4 8.1 Casual gifts ......................................................................................... 4 8.2 Hospitality ........................................................................................... 5 8.3 Declaration of interests ....................................................................... 5 8.4 Preferential treatment in private transactions...................................... 6 8.5 Contracts ............................................................................................ 6 8.6 Favouritism in awarding contracts ...................................................... 6 8.7 Warning to potential contractors ......................................................... 7 8.8 Outside activities ................................................................................. 7 9 Appendix A: Chartered Institute of Purchasing and Supply – Code of Ethics (Courtesy of CIPS) ................................................................................ 9 9.1 Introduction ......................................................................................... 9 9.2 Precepts.............................................. 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Bookmark not defined. 9.3 Guidance ............................................................................................ 9 10 Appendix B: Bribery Act 2010 – Summary of Main Provisions ............. 10 11 Appendix C: Conflicts of Interest Policy ............................................... 11 11.1 Introduction .................................................................................... 11 11.2 Application ..................................................................................... 11 11.3 Real or implied interest .................................................................. 11 11.4 Declaration .................................................................................... 11 11.5 Avoiding a conflict of interest ......................................................... 11 11.6 Disciplinary action .......................................................................... 12 12 Appendix D: Gifts and Hospitality Policy .............................................. 14 12.1 Introduction .................................................................................... 14 12.2 Application ..................................................................................... 14 12.3 Gifts ............................................................................................... 14 12.4 Hospitality ...................................................................................... 14 12.5 Honorariums and funding of travel arrangements .......................... 15 12.6 Access to the Register ................................................................... 15 13 Appendix E: Situations where a conflict of interest might arise ............ 16 13.1 Conflict of educational mission ...................................................... 16 13.2 Conflict of research integrity .......................................................... 17 13.3 Conflicts of financial interests ........................................................ 18 13.4 Conflicts of commitment/Loyalty .................................................... 18 14 Appendix F: Seven Principles identified by the Committee on Standards in Public Life (formerly known as the Nolan Committee) .............. 20 Page 5 of 20 If staff receive gifts of value greater than the level currently set then they should inform their Head of School/Institute and record the details in the on-line gifts and hospitality register in accordance with the procedure in Appendix D. 8.2 Business Hospitality Modest business hospitality of external visitors, provided it is normal and reasonable in the circumstances, e.g. lunches in the course of working visits, is acceptable. Where hospitality is received from another organisation, and exceeds that usually expected in the course of a working visit (e.g. light refreshment or working lunch), staff should declare such hospitality or entertainment. An entry should be made in the gifts and hospitality register in accordance with the procedure in Appendix D. If in doubt they should seek the advice of their Head of School/Institute. 8.3 Declaration of interests QMUL needs to be aware of all cases where an employee, or his or her close relative or associate, has a controlling and/or significant beneficial interest in a business (including a private company, public sector organisation, other employer and/or voluntary organisation), or in any other activity or pursuit, which may compete for a contract to supply either goods or services to QMUL. For the purpose of this policy, a significant financial interest includes the following items received or held by the employee: • Shares, share options, warrants and other securities and interests in a company (together referred to as ‘shares’) • Payments for services e.g. consulting fees, directors fees, stipends or honoraria or payments in kind (together referred to as ‘consultancy fees’) • Payments in respect of intellectual property, including licence fees, royalties and revenue sharing arrangements, except those made under QMUL’s Intellectual Property policies Certain minimum thresholds apply as follows: • Where a financial interest consists of shares, it will be treated as excluded from the definition of significant financial interest where all the following conditions are met: • The shares are held in a listed company • The current value of the shares does not exceed £5,000 at any time • It can reasonably be demonstrated that there is no relationship or connection, explicit or implicit, between the acquisition of the shares and any research to be undertaken for the company • Where a financial interest consists of consultancy fees, it will be treated as excluded from the definition if both the following conditions are met: • The consultancy fee is less than £5,000 in any twelve month period • It can be reasonably demonstrated that payment of any fee is not related to or contingent on the award of the proposed relationship Page 6 of 20 between QMUL and the company (e.g. a research contract or sponsored studentship) All QMUL staff should therefore declare any interests to QMUL, either on starting employment or on acquisition of the interest, in order that it may be known to, and in no way promoted to the detriment of QMUL, staff, patients or students. See Appendix C about how to declare an interest. QMUL will ensure that: • Staff are aware of their responsibility to declare relevant interests • Registers of all such interests are maintained • The policy, after consultation with staff, is in place. The policy includes consideration of disciplinary action to be taken if an employee fails to declare a relevant interest, or is found to have abused his or her official position or knowledge, for the purpose of self-benefit, or that of family or friends 8.4 Preferential treatment in private transactions Individual staff must not seek or accept preferential rates or benefits in kind for private transactions carried out with companies, with which they have had, or may have, official dealings on behalf of QMUL (this does not apply to concessionary agreements negotiated with companies, or by recognised staff interests, on behalf of all staff e.g. staff benefits schemes). 8.5 Contracts All staff who are in contact with suppliers and contractors (including external consultants), and in particular those who are authorised to approve Purchase Orders, or place contracts for goods and services, are expected to adhere to professional standards as set out in the Code of Ethics of the Chartered Institute of Purchasing and Supply (CIPS), reproduced at Appendix A. 8.6 Favouritism in awarding contracts Fair and open competition between prospective contractors or suppliers for QMUL contracts is a requirement of the Financial Regulations and of Public Procurement for Works, Services and Supplies. This means that: • No private or voluntary organisation or company which may bid for QMUL business should be given the advantage over its competitors, such as advance notice of QMUL requirements. This applies to all potential contractors, whether or not there is a relationship between them and QMUL, such as a long running series of previous contracts • Each new contract should be awarded solely on merit, taking into account the requirements of QMUL and the ability of the contractors to fulfil them QMUL will ensure that no special favour is shown to current or former employees or their close relatives or associates in awarding contracts to private or other businesses run by them or employing them in a senior or relevant managerial capacity. Contracts may be awarded to such businesses where they are won in fair competition against other tenders, but scrupulous care must be taken to ensure that Page 7 of 20 the selection process is conducted impartially, and that staff that are known to have a relevant interest have no part in the selection process. 8.7 Warning to potential contractors QMUL will ensure that all invitations to potential contractors to tender for QMUL business include a notice warning tenderers of the consequences of engaging in any corrupt practices involving employees of public bodies. 8.8 Outside activities Opportunities exist for academic staff to be engaged in a range of activities external to QMUL. Many of these kinds of external activities, whether paid or unpaid, have the potential to contribute to the overall health, vitality and profile of QMUL and are encouraged by QMUL. QMUL draws a distinction between situations where an individual undertakes external activities and where a School/Institute is asked to participate in external activities. This section of the code of business conduct applies only to the time in which the Member of Staff is acting in some way on behalf of QMUL or on activities that arise from their role or position within QMUL, whether in a full time, part time or honorary basis. Any other activities which a Member of Staff might wish to undertake are not covered by the code of business conduct. This section of the code of business conduct does not seek to replace existing terms and conditions of service, for example the procedures governing fees for Consultant grade medical staff. Some external activities are an extension of QMUL’s academic role. Examples of this include peer review of articles and grant applications, acting as an external examiner or assessor for another University, serving on editorial boards, serving on international, national or professional committees, lecturing and broadcasting, advice to sponsors of research work. Other external activities are more in the line of private consultancy work where a member of the academic staff is engaged on work in a personal capacity for an external organisation, typically an industrial or commercial firm, or in the case of the School of Medicine and Dentistry a private hospital or clinic, for private patients or for a medical or research charity or organisation. Examples might include; providing expert advice, acting as an expert witness, undertaking specialist studies, lecturing, report writing, non NHS clinical work, consultancies for the WHO or British Council or being a Director, Partner or shareholder in a commercial enterprise. QMUL has long recognised external activities as being not just of personal benefit but of benefit to QMUL. However, there are measures that need to be put in place to ensure that the time and resources spent on external activities does not conflict with, or otherwise impact on the discharge of QMUL related duties to student, patients, research or administration nor conflict with, or otherwise damage, any other QMUL interests. Page 10 of 20 10 Appendix B: Bribery Act 2010 – Summary of Main Provisions The Bribery Act 2010 came into force on 1 July 2011, and applies to all individuals working at all levels and grades for QMUL, including consultants, agency staff, volunteers, interns, agents, sponsors, or any other person associated with QMUL wherever situated, and applies to both home and overseas. A bribe is an inducement or reward offered, promised or provided in order to gain any commercial, contractual, regulatory or personal advantage which is illegal, unethical, a breach of trust or the improper performance of a contract. Corruption is the misuse of entrusted power for personal gain. Acts of bribery or corruption are designed to influence the individual in the performance of their duty and induce them to act dishonestly. Inducements can take the form of gifts, fees, rewards, jobs, internships, examination grades, favours or other advantages. It is an offence under the Bribery Act 2010 to: • Promise or offer a bribe, or to give an advantage • Request, agree to receive or accept a bribe, or accept an advantage • Bribe a foreign public official • In addition it is a corporate offence to consent to or connive in the commission of a bribery offence by anyone associated with QMUL in respect of business carried out on behalf of QMUL. QMUL has a zero tolerance policy towards bribery and corruption and is committed to the highest level of openness, integrity and accountability, both in letter and spirit. The penalties for these offences are severe and can mean up to 10 years imprisonment for the individuals responsible. In addition, if QMUL is found to have connived in or consented to acts of corruption undertaken in its name, the penalties include personal liability for senior managers and an unlimited fine, together with significant reputational damage for QMUL and could result in other Governmental- related consequences, such as debarment from public (government) tendering. QMUL Anti Bribery and Corruption Policy can be found on the Policy Zone http://www.arcs.qmul.ac.uk/policy/index.html Page 11 of 20 11 Appendix C: Conflicts of Interest Policy 11.1 Introduction Any member of staff with a real or implied interest is responsible for making a declaration of the interest prior to any decision being made, which they might be in a position to influence. 11.2 Application The conflict of interest policy applies to all QMUL funds and to all activities of QMUL. 11.3 Real or implied interest An interest real or implied may arise in a number of ways, for example, a professional or personal interest in a supplier who is bidding for a contract. An implied interest concerns matters, which are not clear cut, for example, where a member of staff has worked previously for a potential supplier and thus might possibly have information or to be in a position to influence unfairly a decision to award an order or contract. QMUL staffs have a responsibility for informing their Head of School/Institute of any real or implied interest. 11.4 Declaration The Head of School/Institute should consider the matters declared to him/her by the member of staff and determine whether the matter reported represented a real or implied interest. If in the view of the Head of School/Institute, there is a real conflict of interest then the matter must be disclosed using QMUL’s standard declaration of interest form as attached. If the conflict affects a Head of School/Institute, then he/she should report the matter to the President and Principal who will then decide whether there is a conflict of interests. The declaration form must be submitted to the to the Chief Governance Officer and University Secretary The Chief Governance Officer and University Secretary will keep a register of all conflicts of interest declared. 11.5 Avoiding a conflict of interest Members of QMUL staff who declare an interest must take appropriate action to ensure that the conflict of interest is avoided as far as possible (e.g. by resigning from a tender selection/assessment panel). Page 12 of 20 If it is not possible for a conflict of interest to be avoided (e.g. in the case of the purchase of a specialised item of equipment where the number of suppliers is limited), then the member of staff must not place him/herself in the position of sole responsibility for decision making. 11.6 Disciplinary action QMUL’s financial regulations allow for disciplinary action to be taken against QMUL Staff that knowingly fail to declare a conflict of interest. Page 15 of 20 Openness involves the disclosure of invitations to attend functions, dinners or other events where the cost would exceed that normally expected to be provided by QMUL. Members of staff should ensure that their Head of School/Institute is aware of their being invited to such functions. The Head of School/Institute should consider whether the invitation would represent an undue influence and should be formally recorded in QMUL’s gifts and hospitality register which can be found on QMUL intranet here https://webapps2.is.qmul.ac.uk/gifts/edit-gift.action?id=0&type=gift If in the view of the Head of School/Institute, the hospitality on offer would represent an undue influence then he/she should ensure that the Registrar to QMUL is informed of the donor of the hospitality, the date and venue and who attended. This should be actioned through the completion of the Gifts and Hospitality register by the member of staff concerned. The information from the register will be passed on to the Chief Financial Officer. 12.5 Honorariums and funding of travel arrangements Under certain circumstances the granting of honorariums and/or the sponsorship of travel arrangements by suppliers, especially pharmaceutical or research orientated companies can be seen as an inducement to influence future decision making. QMUL procedures require that all such honorariums and sponsorships should be disclosed fully to the Head of School/Institute and recorded in the Register of Gifts and Hospitality which can be found on QMUL intranet here https://webapps2.is.qmul.ac.uk/gifts/edit-gift.action?id=0&type=gift 12.6 Access to the Register It is QMUL policy that the Register of Conflicts of Interest, and Register of Gifts and Hospitality are open for inspection by members of Council, Senior Management and staff of QMUL. Page 16 of 20 13 Appendix E: Situations where a conflict of interest might arise 13.1 Conflict of educational mission QMUL employees who are involved in educating, training, supervising or directing the work of students (“Education”), should ensure that the education they provide is appropriate to the Student. QMUL has a primary objective to educate and train students. Special care must be taken to ensure that the choice of a student’s research project and the direction of research is not, and does not appear to be influenced by, their supervisor’s financial interests. Whilst the following refer to research students, many of the same points are also applicable to junior members of academic staff and research assistants. Conflicts and their management As a general rule QMUL should not seek to enrol a student where: • The student receives support from (i.e. is sponsored by) a company in which the proposed academic supervisor has a significant financial interest • Where the results arising from, or IP generated in the course of the research project are related to the research activities of a company in which the supervisor has a significant financial interest QMUL believes that such situations are very difficult to monitor and that both the supervisor and QMUL are vulnerable to allegations that the student’s research (and advice given on other issues) was directed in a way that was not in the student’s best interests. One approach to the management of this conflict situation is to identify an alternative member of academic staff, with no significant financial interest, to act as the student’s supervisor. However, it is also to the student’s advantage to be supervised by the member of staff with the greatest expertise and in a very few circumstances this may require that a student is supervised by a staff member with a significant financial interest in the sponsoring organisation. In these circumstances permission should be sought from the Head of School/Institute and the interest reported to the Chief Governance Officer and University Secretary. Increasingly students themselves start businesses whilst still at university. No member of staff, who is in a position to judge the quality of that student’s work, or to evaluate the student in any way, should take any financial stake or hold a formal position in such a student run, owned or controlled venture whilst the student is enrolled at QMUL. Page 17 of 20 13.2 Conflict of research integrity QMUL employees should maintain the highest standards of scientific integrity in the conduct of research. The complete, objective and timely dissemination of new findings through publications is essential for research integrity. In this context, publication means any means of dissemination of research findings, including publication in a journal, information placed on the web, conference presentations or any other kind of scientific communication. The potential for personal gain must not jeopardise nor appear to jeopardise the integrity of research activities, including the choice of research, its design, the interpretation of results, or the reporting of such results. Conflicts and their management Conflicts of interest can arise in a number of situations, for example: • The researcher has a significant interest in the company sponsoring the research, this being exacerbated if the value of the researcher’s financial interest may be affected by the outcome of the research • The researcher is an inventor of patents whose value might be affected by the outcome of the research • The researcher holds a position in an enterprise that may wish to restrict or otherwise manage adverse research findings for commercial reasons The preservation of research integrity must be largely dependent on self-regulation through the promotion of a climate of high ethical standards. However, where a researcher has, or appears to have a conflict of interest (because for example he/she has a significant financial interest in a research sponsor), integrity in designing, conducting and reporting the research may be insufficient to protect the researcher and QMUL from suspicion and consequent reputational damage. In such cases researchers should take special measures to put themselves beyond suspicion. Where any member of staff has a conflict of interest they should: • before the research project is accepted, inform their Head of School/Institute about the conflict, who may declare the interest to the Chief Governance Officer and University Secretary • play no part whatsoever in the negotiation of the financial terms of the research contract • at the time of submission of a publication to a journal, comply with any conflict of interest policy of the relevant journal • make a similar form of disclosure on all other forms of publication Conflicts of this kind should be managed or avoided in a number of ways: • By declining the opportunity to undertake the research • By arranging to have the work carried out by an independent investigator • By appointing a co-investigator who has control over the design and analysis of the research and its results