While governing boards act as a body, each board member owes the institution a fiduciary duty. Each has a personal responsibility to ensure that he/she is up to the task and fulfills his or her obligations. Effective board members must serve more than in name only. He/she must attend meetings, read and evaluate the materials, ask questions and get answers, honor confidentiality, avoid conflicts of interest, demonstrate loyalty, understand and uphold mission, and ensure legal and ethical compliance.
Those board members who cannot do so, must step down and allow others to take their place. The success and sustainability of the institution and the protection of board members from personal liability require nothing less.
SECTION 4(2)(d): The governing board defines and addresses potential conflict of interest for its members. (Conflict of interest)
SECTION 4(2)(f): The governing board protects the institution from undue influence by external persons or bodies. (External influence)
Kentucky State University’s Board of Regents defines addresses conflict of interest in The Gold Book, Article XI, Section 11.2 and further defines it in its Ethical Principles.
The Gold Book, Article XI, Section 11.2 states as follows regarding Conflict of Interest:
Section 11.2: A conflict of interest occurs when any Board member has existing or potential interests that compete or could compete with the interests of the University or any directly affiliated organization, or which impairs or might reasonably impair such Board members' independent, unbiased judgment in the discharge of one's responsibility. Board members shall avoid entering into or maintaining any business or financial interests, transactions, acquisition or sale of property interest which are or may be in conflict with those of the University. Board members shall avoid any personal interest, direct or indirect, in any contract for the purchase of land, buildings, supplies, or services for the University. Board members shall not accept gifts or benefits from any person holding contracts for supplies or services to the University.
The Ethical Principles applies to the Board of Regents:
The Kentucky State University Ethical Principles and Code of Conduct are intended to document expectations of responsibility and integrity.
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