Governance: Conflict of Interest Policy
All members of the Board of Trustees, Officers, faculty and staff of CalArts, collectively as "Affiliated Persons," shall be subject to this Conflict of Interest Policy. Any action by such individuals in violation of these requirements shall not be permitted unless the Board of Trustees expressly approves.
Standard of Conduct
A. The Affiliated Person must always, during the course of services for CalArts, reflect the highest standards of morality, ethical behavior, integrity and public responsibility.
B. CalArts recognizes the inherent right of the Affiliated Person to engage in outside interests and private enterprise, and the organization does not wish to impede these activities. However, to the extent that such outside interests may affect a transaction in which CalArts is involved, there is the potential for an actual or perceived conflict of interest. Since CalArts has a public duty to avoid private inurement, self-dealing and misuse of public funds, it is the policy of this organization to avoid, whenever possible, all such actual or potential conflicts of interest.
C. The Conflict of Interest Policy does not apply if the transaction involves a bargain sale to CalArts by an Affiliated Person, since by definition the sale is for less than fair market value and the excess value is a charitable gift to CalArts.
D. A transaction between CalArts and an Affiliated Person or related entity is acceptable provided that all material facts have been disclosed and, except in the case of a charitable gift, the terms, conditions and consideration involved are commercially fair and reasonable. Any proposed transaction shall be presented to the President or his/her designee and approved, in advance, by the Board of Trustees.
E. Annually, the Institutes, independent auditors will send to each Board member, Officer and Dean of the Institute a document to complete and sign regarding any transactions with the Institute.