AGB Announces Policy Guidance on Board Conflict of Interest

Washington, D.C. - The Association of Governing Boards of Universities and Colleges (AGB) today released its Board of Directors' "Statement on Conflict of Interest." The statement contains 12 principles for college and university boards of trustees to consider when writing or strengthening institutional conflict of interest policies.

"We believe that AGB's 12 principles merit board attention in light of the current pressures associated with their overwhelming responsibilities," said AGB President Richard Legon.

In light of the growing number of high profile conflict of interest violations across the not-for profit sector, there is a pressing need for boards to conduct thorough and periodic reviews of their conflict of interest policies, said Legon.

While financial conflicts tend to dominate board conflict of interest discussions, the subjects of political gain, unmerited preference in hiring, student admissions decisions, and other conflicts can compromise the integrity that boards should hold in trust. In response to these concerns and to queries from presidents, board chairs, trustees and other leaders of member institutions, AGB's board formed a six-member Conflict of Interest Advisory Council to recommend practices for implementation of conflict of interest policies.

Some key issues addressed by the statement include:

• Has your board clearly defined what constitutes a conflict of interest?
• What is the process for board member disclosure of all pertinent conflicts?
• How does your board review disclosures and determine whether a conflict exists?

"Boards need to take it upon themselves to ensure, in light of current scrutiny regarding fiduciary responsibilities, the best principles for managing conflict of interest and adhering to their policies. That's the overarching objective of our new statement," said former Colorado Senator Hank Brown, who chaired the Conflict of Interest Advisory Council.

AGB will host an audio conference on December 8 from 1-2 p.m. EST to examine the core recommendations for board conflict of interest policies and practices. Visit www.agb.org for more information.