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Business schools 'scrambling' to look at their own donor terms

There's more than one reason why a University of Saskatchewan dean is closely watching the University of Calgary this week as it faces criticism following a CBC investigation into its relationship with pipeline company Enbridge.

Business schools face tremendous pressure to fundraise, but must keep research independent

Daphne Taras, dean of the Edwards School of Business at the University of Saskatchewan, says many universities are scrambling to look at their donor terms as the U of C faces criticism following a CBC investigation into its relationship with pipeline company Enbridge. (University of Saskatchewan)

There's more than one reason whyDaphne Taras is closelywatchingthe University of Calgaryas it faces criticism followinga CBC investigation into its relationship with pipeline company Enbridge.

Taras is dean of the Edwards School of Business at the University of Saskatchewan, but spent many years as a student, professor and associate dean at the University of Calgary's Haskayne School of Business, before leaving in 2010.

Perhaps we've been getting just a little bit careless- DaphneTaras, formerassociate dean

Shesent an email to all of her current school'sstaff and donors last weekto explain how such allegations of corporate interference are not problems at her institution in Saskatoon.

"We won't get caught up in that mess," she writes.

As governments pulled back on funding of universities and colleges over the last few decades, post-secondary institutions are relying more on corporate and individual donations.

Tarassays it is pretty rare within the donor relations world for a company to be able to influence a post-secondary institution, but "there are the unusual situations."

University will investigate

The University of Calgary will investigate what happened in the creation and operations of the Enbridge Centre. The Faculty Association and Students' Union both welcome an in-depth look into what exactly took place.

An expert will be called in to conduct anindependent review. The university would not provide details about when it expects any results.

The Faculty Association and Students' Union want a broad investigation that examines conflict of interest allegations against university presidentElizabeth Cannon and board oversight of corporate gifts. They also want any findings from the investigation to be sentto the Office of the Ethics Commissioner for further review.

Cannon said in a statement that she welcomes the review, despite telling theCBC one week earlier,"I don't see at this point the necessity to have a formal investigation."
Corporate and Individual donations are on the rise at the U of C as the university establishes aggressive targets for fundraising. (U of C 2015 Comprehensive Institutional Plan)

Culture change

University officials have said changes have been made since the Enbridge Centre launched, such asstronger governance structures and documentation practices. Last week, Cannon resignedas anindependent director of theEnbridge Income Fund. The university president'scompensationfor that board positionamounted to $130,500 in 2014. While Cannon faced criticism for having a potential conflict of interest, she had publicly disclosed the position and said she always speaks as a university president.

A former U of C professor says further changes are required on campus.

David Keith, who nows works at Harvard, suggests a culture change is necessary, so better procedures are in place to protect academic freedom. The university should be able to engage with the oil industry, receive financial support from corporations, yet also be empowered to both criticize and applaud the private sector.

"The institution really needs to examine, in a deep way beyond just one single person, the way it manages institutes that are meant to do high quality analysis on issues that really matter for public policy in Alberta," said Keith.

Universities 'scrambling' to look at donor terms

A lot of people are "scrambling" to look at their own donor terms, says Taras, who currently chairs theCanadian Federation of Business School Deans.

The CBC investigation is a good thing, she said, since it issparking academics and university administrations across the country to reflect and evaluate the relationships theyhave with corporate donors.

"Perhaps we've been getting just a little bit careless," saysTaras."There's so much attention on university leaders and deans for fundraising. There's been a dramatic, dramatic increase in pressure to fundraise."

TheUniversity of Saskatchewan has many corporate sponsorships and relationships of its own. The business school is located in thePotashCorpBuilding on campus and isnamedafter Murray Edwards, the founderof several oil and gas companies including Canadian Natural Resources.

Tarasspeaks highly of the U of C'spresident.

"Elizabeth Cannon's leadership is superb. Whatever mess she is in now, she'll fix it."

Enbridgedenies ithad any influence into the operations or mandate of the academic centre it sponsored at the University of Calgary. The university agrees, saying the company didn't make any decisions.

Read emails involving Elizabeth Cannon and the Enbridge Centrehere

Clarifications

  • Editor's Note: A previous version of this story incorrectly published before the article was completed.
    Nov 10, 2015 12:26 PM MT