A conflict of interest can arise when there are competing interests in a particular project or line of research that hinder the capacity for clear judgment and unbiased analysis. We want to avoid conflicts of interest to avoid social favoritism (cronyism and nepotism), the preference of familiar people and things (the mere-exposure effect), favoritism towards funding sources (funding outcome biases), bias in review of other projects based on competing interests, self-favoritism (egotism), internal review (self-policing), etc. Bribery, described in further detail below, presents an immediate conflict of interest.
Bribery means to take or offer something in exchange for favoritism. Bribery presents a very immediate and obvious conflict of interest that requires a “gift” in exchange for preferential treatment. These kinds of “gifts” can come in various forms, such as kickbacks for accepting a bid; money, goods, services, or favors for “looking the other way”; use of information to blackmail someone; using knowledge for personal financial gain, such as insider trading; and use of position of authority for personal gain, particularly in government-related positions.
Gifts and bribery do not always come in the form of money or forms of obvious payment. Basically, if you would not feel comfortable in people knowing about the transaction or favor, then it is probably not a good idea to engage in the exchange.
Disclosure is the primary means for addressing possible conflicts of interest, for similar reasons to those in our disclosure to Subjects and Stakeholders (Lesson 2, Part 2 [4]). It might be obvious to state that the easiest way to avoid COIs is to be able to know about them in advance. This is why identifying and disclosing known COIs is the best way to avoid the mistrust that may come from them. In other words, information and access to that information about possible conflicts of interests is still the best way to avoid them.
The external perception of a conflict of interest, even if it feels as though none exists, is enough to put projects, CEOs, and/or entire companies at risk. Integrity is typically based on a person or company’s record for avoiding conflicts of interest and in “fair dealings.”
Penn State, like most major research universities, has an extensive COI policy. For the full policy and requirements for individual reporting, you can read through Penn State's Research Administration Policies Research Protections [5]. All researchers receiving federal funds must report any possible financial conflicts of interest at least once per year, and within thirty days if one does arise. Penn State defines the purpose of the policy as the following:
"The purpose of this Policy is to maintain the objectivity and integrity of Research at The Pennsylvania State University (the “University”) and to ensure transparency in relationships with outside Entities and individuals as they relate to the academic and scholarly mission of the University. Among its many missions, the University seeks to foster interactions between the private sector and academia, as interdisciplinary and translational research is of ever-increasing importance in transforming newfound knowledge into useable technologies and scholarship that benefit the public. There is, however, the potential for financial conflicts of interest in such collaborations. In most cases those conflicts can be managed appropriately, rather than eliminated, thereby enabling those involved in University Research to engage in that Research objectively and with integrity and at the same time maintain acceptable financial relationships with outside Entities and individuals. Disclosure of financial interests to the University will protect both investigators and Penn State from potential criticism or even government sanctions in the event such relationships are subsequently called into question."
As you will see in the following example, corporations also have a significant interest in keeping conflicts of interest from occurring.
Let us look at what the company ArcelorMittal defines as conflicts of interest in its Code of Business Conduct [6].
ArcelorMittal recognizes that we all have our own individual interests and encourages the development of these interests, especially where they are beneficial to the community at large.
However, we must always act in the best interests of the Company, and we must avoid any situation where our personal interests conflict or could conflict with our obligations toward the Company.
As employees, we must not acquire any financial or other interest in any business or participate in any activity that could deprive the Company of the time or the scrupulous attention we need to devote to the performance of our duties.
We must not, directly or through any members of our families or persons living with us or with whom we are associated, or in any other manner:
We must inform our supervisor or the Legal Department of any business or financial interests that could be seen as conflicting or possibly conflicting with the performance of our duties. If the supervisor considers that such a conflict of interest exists or could exist, he or she is to take the steps that are warranted in the circumstances. If the case is complex, the supervisor is to bring it to the attention of the Vice-President of his or her division, the Chief Executive Officer or the General Counsel.
We must not profit from our position with ArcelorMittal so as to derive personal benefits conferred on us by persons who deal or seek to deal with the Company. Consequently, accepting any personal benefit, such as a sum of money, a gift, a loan, services, pleasure trips or vacations, special privileges or living accommodations or lodgings, with the exception of promotional items of little value, is forbidden.
Any entertainment accepted must also be of a modest nature, and the real aim of the entertainment must be to facilitate the achievement of business objectives. For example, if tickets for a sporting or cultural event are offered to us, the person offering the tickets must also plan to attend the event. In general, offers of entertainment in the form of meals and drinks may be accepted, provided that they are inexpensive, infrequent, and, as much as possible, reciprocal.
As these instructions cannot cover every eventuality, we are all required to exercise good judgment. The saying «everybody does it» is not a sufficient justification. If we are having difficulty deciding whether a particular gift or entertainment falls within the boundaries of acceptable business practice, we should ask ourselves the following questions:
Is it directly related to the conduct of business? Is it inexpensive, reasonable, and in good taste? Would I be comfortable telling other customers and suppliers that I gave or received this gift? Other employees? My supervisor? My family? The media? Would I feel obligated to grant favours in return for this gift? Am I sure the gift does not violate a law or a Company policy?
In case of continuing doubt, we should consult our Supervisor or the Legal Department.
Links
[1] https://commons.wikimedia.org/wiki/File:Caution_bribe_coming_through_washington_dc_1.jpg
[2] https://commons.wikimedia.org/wiki/User:Djembayz
[3] https://commons.wikimedia.org/
[4] https://www.e-education.psu.edu/bioet533/node/671
[5] http://guru.psu.edu/policies/RA20.html
[6] https://corporate-media.arcelormittal.com/media/azefvvqa/code-of-business-conduct_en.pdf