University of CaliforniaUniversity of California Ethical Values & ConductEthical Values & Conduct

Compliance BriefingCompliance Briefing

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University of California Ethical Values & Conduct Compliance Briefing

This material is a copy of the online training version of this module.

This material is provided for information purposes only and cannot be used for completion of the course

requirement.

IntroductionDear Colleagues:

Supporting the University's mission of teaching, research, and public service requires a

dedication to the highest ethical standards. All UC employees are expected to conduct University

work in accordance with the University of California Statement of Ethical VaIues and Standards

of EthicaI Conduct. In support of this expectation, we require that all University of California

employees complete training in this area on an annual basis.

This training exists to remind each of us that the University of California acts from the values of

honesty and integrity in all we do. Laws, rules, and regulations change frequently and,

particularly in the current environment, there are increasing pressures to do more with less and

to make decisions quickly. The training is intended as a reminder of the parameters within which

we all must operate as stewards of a public institution.

We encourage you to discuss this training with colleagues, to provide feedback, and to

incorporate the Statement of Ethical Values and Standards of Ethical Conduct into your daily

work culture. Our pledge is to support you in these efforts.

Thank you for your steadfast commitment and service to the University of California, and for your

important role in making the University of California an organization of which we can all be proud.

Sincerely,

Mark G. YudofPresident

Sheryl VaccaSenior Vice PresidentChief Compliance & Audit Officer

Briefing Objectives

By the end of this briefing, you will have learned :

• About expectations and obligations with respect to your University employment• How the University’s ethical values and standards of ethical conduct apply to your work life• How to report instances of non-compliance

This briefing includes fictional scenarios which demonstrate the value of ethical awareness and compliance while helping you evaluate appropriate responses to situations similar to those you may experience while working at the University.

The content of this briefing is intended for all members of the University community and should take approximately 20-30 minutes to complete.

Statement of Ethical ValuesAdopted by The Regents of the University of California, May, 2005

Members of the University of California community are committed to the highest ethical standards in furtherance of our mission of teaching, research and public service. We recognize that we hold the University in trust for the people of the State of California. Our policies, procedures, and standards provide guidance for application of the ethical values stated below in our daily life and work as members of this community.

We are committed to:

IntegrityWe will conduct ourselves with integrity in our dealings with and on behalf of the University.

Excellence We will conscientiously strive for excellence in our work.

Accountability We will be accountable as individuals and as members of this community for our ethical conduct and for compliance with applicable laws and University policies and directives.

Respect We will respect the rights and dignity of others.

Additional Reading: Statement of Ethical Values (213k PDF)

Standards of Ethical ConductAdopted by The Regents of the University of California, May, 2005

All members of the University community , including The Regents, Officers of The Regents, faculty and other academic personnel, staff, students, volunteers, contractors, agents and others associated with the University are expected to abide by these Standards of Ethical Conduct:

1. Fair Dealing2. Individual Responsibility and Accountability3. Respect for Others4. Compliance with Applicable Laws and Regulations5. Compliance with Applicable University Policies, Procedures and Other

Forms of Guidance6. Conflicts of Interest or Commitment7. Ethical Conduct of Research8. Records: Confidentiality/Privacy and Access9. Internal Controls10. Use of University Resources11. Financial Reporting12. Reporting Violations and Protection from Retaliation

Pursuit of the University of California mission of teaching, research and public service requires a commitment to ethical conduct by all. The Standards of Ethical Conduct reflect our belief in ethical,

legal and professional behavior in all of our dealings inside and outside the University.

Additional Reading: Standards of Ethical Conduct

Your Employment Obligations

As an employee of the University of California, it is important that you:

Know the applicable laws, regulations and policies that affect your employment responsibilities

Understand the Statement of Ethical Values and Standards of Ethical Conduct and University policies and procedures related to your employment responsibilities

Ensure your actions are consistent with the Statement of Ethical Values and Standards of Ethical Conduct

Report instances of non-compliance

Ethics and compliance are not new to the University of California. Many University locations, divisions and the faculty already have longstanding ethical codes of their own, as well as "Principles of Community" addressing our shared commitment to respect each others’ roles, diverse backgrounds and personal responsibilities. Ethical and compliant practices are core to the University and its mission of teaching, research and public service.

The purpose of this briefing is to raise continued awareness of University’s Statement of Ethical Values and Standards of Ethical Conduct and to convey University employment obligations with respect to ethical and compliant behavior. The purpose is not to teach University policy but to familiarize University employees with important ethics and compliance information, issues and resources.

Ethics and Compliance at the University:Principles & Practices

Scenario: Andrei’s Aloha Arrangement

Andrei is a manager in a newly established unit and is responsible for selecting and purchasing all the office furniture for the unit. After narrowing his selection to two vendors with similar products and pricing, he learns that one of the vendors has a special offer of a free trip to Hawaii for certain volume purchasers. Andrei has been working very long hours without extra pay to prepare the unit for occupancy. Feeling inspired by the prospect of a free vacation, he focuses his efforts on this company and ends up negotiating a large discount. Given the discount he negotiated, as well as all his extra efforts on this project, Andrei feels justified in accepting the trip to Hawaii. However, he isn’t sure if it would be ethical to do so.

Should Andrei accept the trip to Hawaii? (You may select more than one option.)

A. No. There are laws and University policies that prevent acceptance of a significant gift from a vendor and participating in decisions to award business to that vendor. B. Yes. Since the University is not paying him extra for his overtime, he should be able to keep the trip to Hawaii as compensation.C. Yes. It would be disrespectful to turn down such a generous gift.D. No. Accepting the trip to Hawaii is a conflict of interest.

Scenario: Andrei’s Aloha Arrangement

Feedback TextThe best answers are A and D. Proceed to next page to read a discussion of this scenario.

Discussion: Andrei’s Aloha Arrangement

The following Standards of Ethical Conduct apply:

4. Compliance with Applicable Laws and Regulations

5. Compliance with Applicable University Policies, Procedures and Other Forms of Guidance

6. Conflicts of Interest or Commitment

Andrei may not accept the trip to Hawaii because it is a violation of conflict of interest laws and the University’s gift policy. If you have questions about whether or not a gift may be accepted, you should ask your supervisor or your location’s COI Coordinator, or call 1-800-403-4744.

Scenario: Favor for Faye?

Coach Betty is a new coach in the Athletic Department and is responsible for overseeing the summer swim camp. Assistant Coach Faye has been a great help to Betty since she joined the department, and Betty wants to be able to return the favor. Betty knows Faye’s son would like to be a swim camp instructor, but she also knows the hiring process is very competitive. She indicates to Juan, the business officer in charge of hiring swim instructors, that she would like to make sure Faye's son gets one of the jobs.

Juan informs Betty that all applicants have to go through the normal recruitment process. Betty responds that she owes it to Faye, and besides, there shouldn't be any questions about favoritism since she knows Faye’s son is an avid sports lover.

Which of the following are true statements? (You may select more than one option.)

A. It is unfair for Coach Betty to bypass the appropriate channels to fill an open position.

B. Hiring for University jobs must follow relevant laws and University policies regarding open recruitment.

C. Giving a job as a favor is not an appropriate use of University resources.

D. As administrative support staff, Juan should not question Coach Betty's request.

Scenario: Favor for Faye?

Feedback TextThe best answers are A, B, and C. Proceed to next page to read a discussion of this scenario.

Discussion: Favor for Faye?The following Standards of Ethical Conduct apply:

1. Fair Dealing

2. Individual Responsibility and Accountability

4. Compliance with Applicable Laws and Regulations

5. Compliance with Applicable University Policies, Procedures and Other Forms of Guidance

10. Use of University Resources

Coach Betty does not know whether Faye’s son is qualified to be a swim instructor. Regardless, she and Juan should approach the situation with some awareness of the Standards of Ethical Conduct that apply to such issues.

Bypassing the normal recruitment procedures is unfair to both internal staff seeking promotional opportunities and to external candidates interested in working for the University. Failing to go through the formal application process violates University policies that require open recruitment in most cases, and may also violate federal regulations. Furthermore, a University position is a resource and should be allocated to the best qualified candidate in a pool of qualified candidates.

If you have questions about whether or not human resources policies are being violated, you should ask your supervisor or the Human Resources department at your location.

Scenario: Ingrid’s Interests

Ingrid is a budget officer in the School of Engineering. She would like to serve on a committee that will select a company to provide consulting services to the School of Engineering. Ingrid’s husband works for one of the companies bidding on the work. However, he won't be working on the proposal, and if his company wins the bid, he wouldn't be part of the consulting job.

A. Ingrid's participation in a decision that involves her husband’s company violates University policy and state law.

B. Because Ingrid’s husband’s company could benefit as a result of the decision, Ingrid’s interests could be compromised in a number of ways.

C. Even if the bidding process means that the lowest bidder gets the consulting job, Ingrid's involvement in the decision could be regarded as unfair by the participants, creating the appearance of a conflict of interest.

D. All of the above

Which of the following statements are true?

Scenario: Ingrid’s Interests

Feedback TextThe best answer is D. Proceed to next page to read a discussion of this scenario.

Discussion: Ingrid’s Interests

Additional Reading:Public Officials’Obligations Under Political Reform Act (265k PDF)

UC Policy on Conflict of Interest (177k PDF)

The following Standards of Ethical Conduct apply:

1. Fair Dealing5. Compliance with Applicable University Policies, Procedures and Other Forms of Guidance

6. Conflicts of Interest or Commitment

Even though the process requires selection of the lowest bid, and Ingrid’s husband will not personally gain if his company were selected, Ingrid has a financial interest in the University’s decision to select a consulting vendor and may not participate in any way in the decision. While she receives no direct income from her husband’s company, Ingrid’s community property interest in her husband’s salary is enough to constitute a conflict. She would also have a conflict of interest if the other individual in this scenario were a registered domestic partner, rather than her husband.

As long as Ingrid has an interest in the decision, she has a conflict of interest and may not participate. Even if the result of the process is that the lowest bidder gets the contract, Ingrid could be liable for civil and criminal penalties, because she would have violated the conflict of interest provisions of the Political Reform Act, which applies to all University employees.

Scenario: Cliff’s Consulting

Cliff is a junior faculty member in the History department who was recently hired to teach multiple sections of his specialty, Greek history. Cliff is also a talented web designer, and to make extra money, he recently entered into an outside consulting agreement with a company to design its website. The extra work is keeping him up very late at night, and to meet the company deadlines, he also uses many of his office hours to work on the website. Cliff is so tired that he is barely able to stay focused when lecturing. His students have been complaining that he is falling behind with grading, and his colleagues have also expressed concern about his lack of participation in department meetings.

Should Cliff continue with his consulting arrangement while still a full-time employee of the University? (You may select more than one option.)

A. No. Cliff should make sure his outside interests do not interfere with his University responsibilities.B. No. Cliff is not being respectful to his students and colleagues.C. Yes. Cliff is probably just tired from having to teach so many sections of Greek history. D. No. Cliff is misusing University resources to work on outside activities for personal gain.

Scenario: Cliff’s Consulting

Feedback TextThe best answers are A, B, and D. Proceed to next page to read a discussion of this scenario.

Discussion: Cliff’s Consulting

The following Standards of Ethical Conduct apply:

3. Respect for Others

6. Conflicts of Interest or Commitment

10. Use of University Resources

While University employees may be able to hold outside jobs and enter into outside consulting agreements, Cliff’s primary problem in this scenario is that his outside interests are affecting his duties as a University employee. Because he is not fully participating in teaching/learning opportunities, either as a lecturer and as a colleague, he is not demonstrating respect for his colleagues and students. He is also misusing University time and resources for personal gain.

If you have questions about whether or not an outside professional activity is appropriate, you should ask your supervisor or the Academic Personnel office.

Scenario: Grant Fund HopscotchBrad, a research technician, approaches his department business manager, Tyra, to report a concern. Brad has noticed that a colleague, Joshua, is getting paid from a certain grant fund but not performing the work specified in that grant. Instead, Joshua has been working on a project funded by a different grant for the past nine months. Tyra takes this information seriously, as she has had her own questions about the appropriateness of other charges to this grant.

Which of the following statements related to this scenario are true?

A. If Joshua charges time to and receives salary from a grant on which he is not working, he is causing two grants to be falsely reported.

B. As long as both funds are in the same department, either may be used to pay Joshua.C. Adequate controls do not appear to be in place to prevent or detect inaccurate charges. D. The situation involves an allegation of wrongdoing so Tyra should contact the Locally Designated

Official (LDO)

Scenario: Grant Fund Hopscotch

Feedback TextThe best answers are A, C, and D. Proceed to next page to read a discussion of this scenario.

Discussion: Grant Fund HopscotchThe following Standards of Ethical Conduct apply:

2. Individual Responsibility and Accountability

4. Compliance with Applicable Laws and Regulations

9. Internal Controls

11. Financial Reporting

12. Reporting Violations and Protection from Retaliation

Grants are an important University resource and should not be misused or abused. Each employee in this scenario must exercise responsibility and accountability to assure that grants are charged only for time actually worked and within the approved program for that grant.

While initially looking into the matter, Tyra has the responsibility to consult with her location’s Locally Designated Official (LDO), the person who administers the Whistleblower Policy.

If Tyra concludes that no problem exists but Brad still thinks something improper is going on, Brad can contact the LDO directly to report his concerns. Such reports are treated confidentially by the University, and those who make them are protected from retaliation.

Scenario: Supplies for Schools

As an administrative analyst, Yvonne is aware that some office supplies purchased by her department are not being used. She is also aware that budget cuts are causing local schools to be short on basic supplies. Knowing that the University actively supports the K - 12 system, she figures there would be nothing wrong with donating surplus supplies to her children's school. After verifying that they're not needed by anyone in her office, she packs up a couple of boxes of supplies and brings them with her to the next parent-teacher conference.

She is stunned when she discovers that someone has filed a whistleblower complaint alleging that she is stealing University supplies. She suspects her co-worker Quentin because he always tries to make her look bad in front of the boss.

A. University equipment and supplies may be freely donated for non-profit or educational use.B. University equipment and supplies may not be removed from University property, donated, or discarded, except in accordance with the proper procedures.C. Whether or not Yvonne has violated University policy, Quentin is protected from retaliation.D. Office supplies are considered the personal property of the person who ordered them.

Which of the following statements are true? (You may select more than one option.)

Scenario: Supplies for Schools

Feedback TextThe best answers are B and C. Proceed to next page to read a discussion of this case study.

Discussion: Supplies for Schools

The following Standards of Ethical Conduct apply:

5. Compliance with Applicable University Policies, Procedures & Other Forms of Guidance

10. Use of University Resources

12. Reporting Violations and Protection from Retaliation

Even if you know of supplies or equipment that are going unused and you think you could put them to good use elsewhere, equipment and supplies are University-owned resources. It’s against University policy to remove such resources from the University for use elsewhere. University locations have procedures in place for disposing of surplus goods or equipment. Check with your supervisor if you're unsure of the process.

Employees may consult with the Locally Designated Official (LDO) who administers the University’s Whistleblower Policy if they suspect another employee is taking University property. The reporting individual is protected under the Whistleblower Policy for doing so. Employees may also contact their local Human Resources office for assistance.

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Scenario: Let’s Talk About It

Rodney is a new supervisor who oversees six employees in the chemistry department. As the end of the fiscal year approaches, work becomes extremely busy while the department gears up to close out the books. Irving, a department analyst, calls in sick for two weeks straight. Irving tells Rodney that he is having some “medical problems” but does not disclose the nature of his problems or any other details. Rodney is suspicious because Irving does not sound sick and has not been forthcoming about his medical problems. Rodney is also concerned because Irving’s absence is causing added pressure on other employees who have taken on Irving’s job duties while his is out. A couple of the staff members are now complaining about the extra work.

The day Irving returns to work he provides Rodney with a current doctor’s note which simply states “Irving has been under my care for the past two weeks. He may return to work with no restrictions effective today.” Rodney sits Irving down and asks what was wrong with him. Irving does not respond. After an awkward silence, Rodney tells Irving that he has not been pulling his weight and that his attendance and productivity have to improve or he will be disciplined. Irving responds that he has a medical condition and is doing the best he can, but again does not reveal the nature of his illness. Frustrated, Rodney points out that the department’s workload is extremely heavy and states that he will not tolerate any further absences by Irving. Irving stomps out of the meeting saying he intends to file a grievance.

Click the Next button to continue.

Scenario: Let’s Talk About It (cont’d.)

Keeping in mind the scenario just presented, which of the statements below are true? (You may select more than one option.)

A. There are state and federal laws and University policies and procedures regarding employees whose illnesses/disabilities require some accommodation, including a requirement that the University and the employee engage in an "interactive process" where the employee's needs and the department's needs can both be considered.

B. A supervisor always has the right to know an employee's diagnosis so he or she can figure out what to do about it. Irving should have discussed his diagnosis with Rodney.

C. Rodney is following University policy by warning Irving that additional absences will not be tolerated.

D. University employees need to learn and abide by the laws, regulations, policies and procedures that affect their roles.

Scenario: Let’s Talk About It

Feedback TextThe best answers are A and D. Proceed to next page to read a discussion of this case study.

Discussion: Let’s Talk About ItThe following Standards of Ethical Conduct apply:

2. Individual Responsibility and Accountability

4. Compliance with Applicable Laws and Regulations

5. Compliance with Applicable University Policies, Procedures & Other Forms of Guidance

Issues regarding an employee's medical condition and the way to appropriately respond to it in the workplace are complicated, often leading to complaints, grievances, and even lawsuits. While we do not know from these facts whether or not Irving has a disability or needs a medical leave, there are appropriate processes for making these determinations. It is probable that Rodney, in his role as a supervisor, made a couple of mistakes that could have been avoided.

Had Rodney checked with Human Resources, he would have learned that although there are others at the University who may be entitled to know an employee’s specific diagnosis, or medical condition, supervisors are not normally entitled to this information. He would also have learned that there is a specific process in place for learning whether an employee’s medical problem may qualify as a disability and whether an accommodation may be required. Similarly an employee may have a serious health condition which may entitled the employee to protected medical leave. If Irving’s absences are protected by law, Rodney cannot discipline or otherwise retaliate against Irving for being absent from work despite the negative impact that Irving’s absence may have on the department.

The Standards of Ethical Conduct make it clear that supervisors, as well as all other employees, must take responsibility for familiarizing themselves with the laws, regulations, policies, procedures, and other forms of guidance which apply to their positions. Supervisors who are unsure how to handle a personnel situation should always consult with Human Resources to ensure they are in compliance.

The “Wall Street Journal Test”

While the previous case studies demonstrate specific violations of the Standards of Ethical Conduct, not all situations are as clear-cut. There are some activities that, while legal and not explicitly prohibited by University policy, may not pass what is known as the “Wall Street Journal Test”. That is, if what you are doing were to appear on the front page of the newspaper, would you feel proud of your actions?

The easiest way to stay out of a trouble spot is to ask yourself in these situations, "Would I want to read about this in the newspaper or online?"

Other questions you might ask include:

• How would I explain what I'm doing to my family?

• What would my supervisor or colleagues think about what I’m doing?

• Would talking about this at a non-University social event make me feel embarrassed or uncomfortable? • Am I uneasy when I hear about colleagues doing this?

• Illegal activities and significant policy violations should always be reported in accordance with applicable laws and policies.

• The University is committed to responsible evaluation of all reports of violations of the Standards of Ethical Conduct and/or alleged improper activities on the part of members of the University community.

• The University has established processes for reporting and investigating any suspected wrongdoing, including an anonymous hotline people are encouraged to use if they don't feel comfortable bringing the matter forward openly.

• An individual who is made aware of an improper act should consult with someone at a higher level of authority or with the Locally Designated Official (LDO) to determine how to handle the matter.

Reporting Improper Activities

UC Whistleblower Hotline (anonymous/confidential) (800) 403-4744 or http://universityofcalifornia.edu/hotline

Decision-Tree for Reporting Compliance Concerns

Reporting Contact Info

• Locally Designated Officials (LDO) http://ucwhistleblower.ucop.edu/campusldo.html

• Campus Ethics and Compliance Officers (CECO) http://www.universityofcalifornia.edu/compaudit/campuscontacts.html

• Campus Counsel http://www.ucop.edu/ogc/campuscounsel.html

• Chief Compliance and Audit Officer Sheryl Vacca 510-987-9090 or http://www.universityofcalifornia.edu/compaudit/sherylvacca.html

• UC Whistleblower Hotline (anonymous/confidential) (800) 403-4744 or http://universityofcalifornia.edu/hotline

Reminder: Your Employment Obligations

As this briefing has shown, it is critical that all members of the University community:

• Know the applicable laws, regulations and policies that affect your employment responsibilities

• Understand the Statement of Ethical Values and Standards of Ethical Conduct and University policies and procedures related to your employment responsibilities

• Ensure your actions are consistent with the University Statement of Ethical Values and Standards of Ethical Conduct

• Report instances of non-compliance

University of California Ethical Values & Conduct Compliance Briefing

Although no single course can adequately address all potential ethical and compliance dilemmas you might face as an important member of the University

community, we hope that the information provided in this briefing will better equip you to make the right decisions and to act in an ethical and compliant manner.

Thank you for your participation.