The issues surrounding faculty academic freedom and institutional accountability are considered. After reviewing the evolution of academic freedom and tenure, attention is directed to issues prompting greater accountability by institutions and individuals, and the compatibilities and conflicts arising from the emerging requirements. Recommendations are offered to avoid unnecessary problems between faculty and administrators while preserving the concepts of academic freedom and tenure. Colleges have faced increasing requirements to account for funds they receive and to respond to inquiries about efficiency and effectiveness. As a result, colleges have had to enact and enforce limitations on faculty that address: permissible levels of outside consulting, consulting for business/industry and conflicts of interest, ownership of patents and copyrights, and proper conduct with students. Violations of new rules become valid cause for faculty discipline or dismissal. Although increased regulation of faculty conduct may not be inconsistent with academic freedom, it does seriously affect faculty morale and job satisfaction. One mechanism to offset the negative effects on faculty is to involve faculty in studying and implementing regulations for professional conduct. (SW)