Institutions that lack protections against the conflict of interest
that can arise from doing business with relatives are inviting trouble
It often begins with the best of intentions. A high-ranking
academic official sees a need on campus that a relative is perfectly
suited to meet. Even better, the relative agrees to do the job at a
reduced rate. At first blush, it seems like the perfect solution. But
is it?
Nepotistic practices, which result in contracts being granted on
the basis of family connections with key university officials, or
individuals getting university jobs supervised by a relative, pose
inherent conflicts for postsecondary institutions. Schools that have no
protections against the potential conflicts of interest that can arise
from these practices are courting trouble, according to a consensus of
college and university officials.
Many public institutions, however, are bound by the protections
imposed by their state legal systems. Sheila Trice Bell, executive
director of the National Association of College and University
Attorneys (NACUA) in Washington, D.C., says most states have laws that
prohibit conflicts-of-interest at all public institutions, including
colleges and universities.
Nonetheless, little uniformity exists in public statutes on conflict-of-interest rules among the states.
“It really depends on the state. Most of them have some sort of
standard with regards to conflict of interest for public employees and
institutions,” Bell says.
Less restricted by state laws than public institutions, private
colleges and universities are more obliged to police themselves on
conflict-of-interest matters. Institutions ultimately have to ensure
that their policies are aboveboard and evenhanded for their employees
and for the organization as a whole.
