Understanding Conflict of Interest in Research: Why Disclosure Matters and How to Mitigate Risk

In today’s research landscape, the perception and reality of a conflict of interest (COI) carry significant weight - not only for individual researchers, but for institutional credibility and compliance. A conflict of interest occurs when a person’s external relationships, financial or otherwise, have the potential to influence - or appear to influence - the design, conduct, or reporting of research. When left undisclosed or unmanaged, COIs can erode trust, invite regulatory risk, and undermine research integrity.

For higher education institutions in particular, COI management is no longer just a matter of ethics - it’s a compliance imperative. Federal agencies, state laws, and institutional policies require disclosure of financial interests and outside commitments by those involved in research. Consider this: at the University of California‑Riverside, any “outside interest” related to an investigator’s institutional responsibilities must be reported via the institution’s COI office through the disclosure system. Whether you’re managing federal awards, industrial partnerships, or collaborative research, the presence of a perceived or actual conflict triggers scrutiny - not just for the individual, but for the entire institution.

What constitutes a Conflict of Interest?

At a high level, a COI arises when an individual’s personal or external interests could compromise - or be seen to compromise - their objectivity in research. These interests fall into two broad categories:

1. Financial conflicts.
This might include receiving consulting or equity in a company whose product you are studying, holding stock in a firm indirectly affected by your findings, or receiving re­imbursed travel or gifts from a sponsor with a vested interest in results. Even if no unethical intent exists, unreported financial interests may undermine confidence in outcomes.

2. Non-financial conflicts.
Obligations such as outside employment, family members working for a company under review, or personal relationships can introduce bias or an appearance of bias. For example, if a researcher’s spouse holds a leadership role in an industry partner, that merits disclosure to ensure the research remains beyond reproach.

In many institutions, these relationships must be disclosed annually, as well as when new interests emerge. For instance, at Indiana University, individuals “responsible for the design, conduct, or reporting” of research must submit an annual research-related COI disclosure form - and within 30 days if any new interest arises. 

In effect, if you’re involved in research as a principal investigator, co-investigator, key person, or consultant, you must ask yourself: Could my outside interest affect the integrity of my research, or make others question it? If the answer is “maybe,” disclosure is prudent.

Why disclosure and management matter

Failing to appropriately disclose or manage conflicts can lead to a host of problems:

• Eroded research integrity. The appearance of bias - whether real or perceived - undermines confidence in your findings, your institution, and sometimes the sector at large.
• Regulatory and legal risk. Federal policies, such as the Public Health Service’s financial conflict of interest regulation, require the reporting of significant financial interests in certain circumstances. Institutions that don’t comply may face audit findings, loss of funding, reputational harm, or even sanctions.
• Institutional trust and reputation. Donors, industry partners, peers, and the public expect transparency. Hidden conflicts can damage relationships, slow approvals, and create internal distrust.
• Operational burdens. When COI disclosures are delayed or mismanaged, they can hold up proposals, awards, or human subjects research, delaying critical milestones.
  
  

It’s worth noting that the disclosure process itself plays a crucial role in safeguarding the reputations of both institutions and researchers. For example, at the aforementioned UCR, submitting your outside financial interests into the institution’s COI system is not just policy - it’s a marker of accountability and governance.

Evolving trends and complexity in research COIs

The COI landscape continues to change. For example:

• The rise of industry-academic partnerships means equity, consulting relationships, and startup involvement are far more common in higher education research.
• Increased global collaboration introduces links to foreign entities, cross-disciplinary work, and new mechanisms for “outside interest.” University of Massachusetts Amherst is one such example that now links foreign engagement questions to COI disclosures. 
• Regulation continues to evolve: The requirement for timely updates (often within 30 days) and expanded definitions of “significant financial interest” necessitate that institutions must continually review their policies and systems.

In short, institutions can no longer rely on annual paper disclosures tucked into binders - effective COI management demands a clear process, transparency, and modern tools.

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Best practices for institutions and researchers

To stay ahead of risk and maintain integrity, both individuals and institutions can adopt a proactive stance:

For researchers:

• When in doubt, disclose. If a relationship could influence (or appear to), err on the side of transparency.
• Keep timely records of relevant interests (equity, consulting, travel, outside employment, and family relationships).
• Understand your institutional policy and the research sponsors’ requirements - and maintain training or certification as needed.
• Ask questions early in the proposal stage: Are there relationships that your institution or sponsor deems “significant?” What constitutes a “related” financial interest?
  
  

For institutions:

• Establish a clear policy with defined thresholds for disclosure and timely updates. Some institutions, such as LSU Health New Orleans, require an annual review and update within 30 days of any change.
• Use technology platforms that integrate COI disclosures with proposals and awards. This avoids bottlenecks and ensures visibility. At UMass Amherst, the COI disclosure for research includes integrated “Outside Activities” and “Foreign Engagement” questions in the same platform.
• Provide training and support to faculty and staff so that policies are understood and followed, rather than being ignored.
• Monitor and audit: Are disclosures being submitted on time? Are management plans executed? Are there delays in research approvals due to COI issues?
• Embed COI review into pre-award workflows: for example, proposals should not be submitted until COI disclosures are reviewed if needed.
  
  

How technology supports COI management

Modern research institutions increasingly rely on automated systems to manage the COI process efficiently and effectively. For example, many universities use the disclosure module of the software system Kuali Research to support annual disclosures, updates, reviews, and links to proposals. At institutes such as Colorado State University, a COI module embedded in Kuali supports the review workflow, project declarations, and management plans. 

By moving away from paper-based disclosures and manual routing, institutions gain:

• Faster compliance workflows (less chance of missing deadlines)
• Better visibility into the status of disclosures and any associated management plans
• Integration between COI disclosures and proposal/award systems so that potential conflicts are flagged before commitments are made
• Data for institutional reporting and audit readiness

Even configuring project-level “declarations” linked to outside entities is supported. As documented in Kuali’s knowledge base: “Conflict of Interest provides functionality that supports the reporter’s assessment of their disclosed relationships on their research projects before submission to COI Admins for review.” 

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The Bottom Line…

Conflicts of interest can arise more easily than many realize, and the consequences of failing to disclose or manage them are real. But in today’s higher-education research environment, it’s not enough to rely on individual honor alone. Institutions need clear policies, timely training, modern systems, and proactive administration. Researchers must remain vigilant in fulfilling their obligations, accurately document relationships, and submit disclosures in a timely manner.

Ultimately, when an institution fosters a culture of transparency and supports it with efficient systems, everyone benefits: the researcher, the institution, the funding sponsor, and the broader public, which in turn fosters trust in academic research.

For institutions ready to streamline this aspect of research administration, a solution such as Kuali Research offers a comprehensive platform with modules for conflict of interest/commitment disclosures, project declarations, review workflows, and reporting. For more information, visit https://www.kuali.co/products/research to explore how it can help your institution manage COIs with confidence and efficiency.

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