Conflict of Interest Statement

I. INTRODUCTION:

One of the primary responsibilities of the officers and administrative employees of Seton Hall University (hereinafter "University") is to safeguard the tangible and intangible assets of the University. In this regard, adequate systems of internal control must be adopted and implemented to ensure that the University, its' mission and objectives are not compromised by the actions of any officer or administrative employee (hereinafter collectively referred to as "key employees"). As a part of a system of internal control, the University's administration has developed and adopted this statement of policy regarding conflicts of interest (hereinafter "Statement").

II. COMPLIANCE:

The Office of Business Affairs & Auxiliary Services of the University (hereinafter "Business Affairs") shall be responsible for monitoring compliance with this Statement concerning all key employees. Business Affairs shall circulate a copy of this Statement to all key employees immediately after it is adopted. Within two weeks thereafter each key employee shall either sign a copy of this Statement and return it to Business Affairs or prepare a written statement setting forth any circumstances which may be construed as creating a conflict of interest or leading to the possibility of the existence of a conflict of interest. After this Statement is adopted, each applicant for employment with the University as a key employee shall be required either to sign a copy of this Statement and return it to the Human Resources Office of the University or prepare a written statement setting forth any specific circumstances which may be construed as creating a conflict of interest or leading to the possibility of the existence of a conflict of interest. Human Resources shall then forward either such statement to Business Affairs for appropriate action.

When Business Affairs receives a Statement from a key employee or applicant for a key employee position that specific circumstances exist which may be construed as creating or leading to the possibility of a conflict of interest, that Statement shall be forwarded to the Executive Vice President of Business & Finance or his/her designee (hereinafter "EVP") for review. The EVP shall then make a determination as to whether a conflict or potential conflict of interest exists. If such a conflict or potential conflict is found, the EVP shall either: (1) advise the key employee involved that he/she must refrain from or discontinue involvement in the circumstances giving rise to the conflict; or (2) give the key employee authorization to proceed or continue with the activity in question, so long as appropriate safeguards specified by the EVP are followed.

In those instances where a key employee or an applicant for a position as a key employee is uncertain as to whether an actual or potential conflict of interest exists, the key employee should bring the particular circumstances giving rise to such actual or potential conflict to the attention of the Director of Business Affairs & Auxiliary Services (hereinafter "Director"). If this occurs, the Director shall prepare a written memorandum of such discussions and his/her recommendation as to whether a conflict or potential conflict of interest exists. All such memoranda shall be forwarded to and considered by the EVP.
The decision of the EVP as to the existence of any conflict or potential conflict of interest shall be final. Failure to follow the EVP's directives with respect to the elimination of a conflict of interest may result in disciplinary action, including termination of employment.

All key employees who have signed a copy of this Statement shall annually be provided with a written reminder from the University concerning their continuing obligation to avoid conflicts of interest.

III. CONFLICTS OF INTEREST:

The University is a non-profit educational corporation organized under the laws of the State of New Jersey. As a non-profit institution, it is prohibited from engaging in any activity the primary purpose of which is to benefit financially any individual. Moreover, the tax exempt status of the University further prohibits any institutional income to accrue to the benefit of any individual or group of individuals. In connection with the restrictions set forth above, this Statement has been prepared to offer broad guidance to the members of the University's faculty and administration.

The term "conflict of interest" cannot be qualitatively defined, and it is subject to interpretation. It is recognized that certain situations or issues involving ethical judgement may not always be free from ambiguity. Therefore, as a general rule, a person should not only consider the actual existence of a conflict of interest, but also the existence of an unknown third party who might have occasion to judge or interpret the transaction. In order to ensure appropriate conduct by all officers and administrators of the University, the highest standards of honorable and ethical conduct must be observed at all times in dealings with or on behalf of the University.

A key employee shall be considered to have a conflict of interest if:

  1. There exists or potentially exists financial or other interests which impair such key employees's independent and unbiased judgements in the discharge of his/her responsibilities to the University.

  2. A member of the key employee's family (which for purposes of this Statement shall include spouses, parents, siblings, children, and any other relative if said relative resides in the same household as the key employee), or any organization in which the key employee (or a member of his/her family) is an officer, director, employee, member, partner, trustee, or major stockholder, has existing or potentially existing financial or other dealings with the University which might impair or might reasonably appear to impair the key employee's independent, unbiased judgement in the discharge of his/her responsibilities to the University.

  3. Any University resources (including any time of University personnel, funds, facilities, the University's reputation or other assets) are diverted or appear to be being diverted from their intended purpose, by virtue of a key employee's outside activities, associations, or appointments.

  4. A key employee (or a member of his/her family) acquires or holds investments in real estates or property in which the University may have an interest or when such key employee (or a member of his/her family) accepts gifts, gratuities, or favors from any person or organization doing business with or seeking to do business with the University if, under the circumstances, it could reasonably be inferred from these remunerations that the key employee's independent, unbiased judgement in discharging his/her obligations to the University would tend to be influenced.

Prior to a key employee becoming involved in an activity giving rise to a conflict of interest, or as soon as possible after a conflict of interest develops as the result of actions or e vents other than those under the key employee's control, the key employee shall prepare a written statement concerning the conflict of interest and submit same to Business Affairs for presentation to the EVP, who shall take whatever action he/she deems appropriate with respect thereto. While the existence of a potential conflict of interest will not automatically preclude a key employee's involvement in a specific activity, such activities are not viewed favorably and will only be approved if the EVP determines that the best interest of the University would not be compromised.  

IV. GENERAL GUIDELINES FOR THE AVOIDANCE OF CONFLICTS:

All individuals employed by the University are charged with fidelity in the performance of their duties and functions and should conduct themselves in such regard solely for the purpose, benefit, and interest of the University.

All individuals should be aware that their positions within the University should not be used to gain favorable treatment or self-enhancement unless such occurs as an incidental, secondary result of actions the primary purpose of which are intended to benefit the University, its' students, and the public in general.

In supporting and participating in political and legal causes or issues, the use of one's title or association with the University is not considered inappropriate; however, careful judgement should be exercised to preclude any inference that one is using his/her position or speaking on behalf of the University in such instance unless proper authorization to do so has been obtained.

For ethical as well as legal reasons, individuals should only have direct dealings with vendors of the University in accordance with the University's purchasing policies.

Information known to be confidential or privileged acquired by an individual in the course of employment at the University should be used only for University purposes.

Officers and administrative personnel should remain cognizant that they are expected to devote their best efforts to the furtherance of the University's mission during the course of their employment. Outside employment or personal commitments, if such activities would tend to impair an individuals's effective fulfillment of his/her regular responsibilities to the University, are not appropriate and should be avoided.

The University, as an academic institution, encourages employee participation in various extramural organizations, government programs, or professional associations that are of service to the general public, the University, or the individual's professional or personal development. However, if the nature of the association is such that the University's name may be identified with the outside organization, the individual must exercise caution and sensitivity to avoid any participation or affiliation which could be detrimental to the University, its mission, or interests. Individuals are expected to seek advice from the Director before making commitments that may be potentially compromising to the University, its mission, or interests.

In accordance with the foregoing principles, each key employee shall disclose to the Director, in accordance with the procedures set forth above, any actual or potential conflict of interest with the University at the earliest possible time. No key employee shall act for or on behalf of the University, nor vote on any matter under consideration by a committee or constituent part of the University, in connection with a matter in which the key employee has a conflict of interest with the University.