What characterizes an institutional conflict of interest?

An institutional conflict of interest is characterized by financial or non-financial interests of an institution that could interfere with research outcomes or the integrity of the research process. This type of conflict arises when the institution has a vested interest that might compromise the researcher's objectivity or the validity of research results. Institutional conflicts can occur, for example, when the institution has financial investments in a company that could benefit from the research findings, or when there are pressures to achieve certain outcomes that align with institutional goals.

By contrast, personal relationships affecting decisions are more indicative of individual conflicts of interest, while employee misconduct may fall into issues of ethics or compliance rather than institutional conflict. Government regulations pertain to overarching guidelines for funding and research conduct, but they do not inherently define an institutional conflict of interest. Thus, the correct choice highlights the core issue of potential bias and compromised integrity tied specifically to the institution's interests.