Working With a Company While at USU

Working For or Consulting With Your Company

Faculty working for companies they own or have an interest in should be aware that:

  • Time and effort devoted to company activities may conflict with university responsibilities, particularly if not clearly documented or approved
  • Compensation from the company may create financial incentives that could influence—or appear to influence—university decisions or research activities
  • Use of university resources for company purposes may result in inappropriate transfer of institutional resources to a private entity

These situations may create actual or perceived conflicts of interest that require disclosure and management.

Collaborating With Your Company on Research

Research Collaboration & Subawards

Collaborations with faculty‑owned companies require special attention to potential COI risks, including:

  • Financial interests in the company may influence—or appear to influence—research design, conduct, or reporting, creating risk to objectivity and research integrity
  • Selection of the company as a subawardee or vendor may be influenced by personal financial interests, rather than objective criteria, requiring clear justification and independent review
  • Use of university personnel, students, or space for company activities may create inappropriate benefit to the company and risk misuse of institutional resources

PI Ownership of Subcontracted Companies
If the PI owns the subcontracting company, financial interests and decision‑making authority may overlap, creating a risk to objectivity.

This situation requires:
  • Additional COI review and independent oversight to protect research integrity
  • Completion of the Entity Use Review Form to document that the company was selected based on objective criteria and in the best interest of the project

Your Company as a Vendor

If your company sells goods or services to the university or provides products or services used in your research (e.g., lab supplies, sensors, software, data platforms, or contracted project support):

  • Ownership must be disclosed during the procurement process to ensure transparency and appropriate COI review
  • Purchases involving a faculty‑owned company must be justified based on objective criteria and require independent approval to mitigate the risk of biased decision‑making
  • Sole‑source procurements involving a faculty‑owned company may present increased risk of perceived preferential treatment and typically require strong justification, regardless of dollar amount
  • When products or services from a faculty‑owned company are used in research, additional safeguards may be required to address risks to objectivity, particularly if the research outcomes could affect the value or reputation of the company

Purchasing or Contract Negotiations
Faculty with a financial interest in a company cannot participate in purchasing or contract negotiations involving that company, as this creates a direct conflict between personal financial interests and institutional decision‑making.

In these situations:
  • Independent personnel must conduct procurement decisions
  • The Entity Use Review Form must be completed to document that the selection is objective and free from bias

Entity Use Review Form
When selecting a company in which you have a financial or other interest to provide goods or services—or to serve as a subrecipient—you must complete the Entity Use Review Form to document that the selection is objective and in the best interest of the university and the project.
Entity Use Review Form