REGULATIONS GOVERNING THE CONDUCT OF NAVAL PERSONNEL

As a Ship's Serviceman, you must be familiar with the regulations concerning your everyday conduct. In this section we will discuss the regulations governing the conduct of all naval personnel.
Affiliations and Financial Interest
Naval personnel must not engage in any personal, business, or professional activity nor receive nor retain any direct or indirect financial interest that places them in a position of conflict between their private interests and the public interests of the United States related to the duties or responsibilities of their official positions. For the purpose of this prohibition, the private interests of a spouse, minor child, and any household member are treated as private interests of the naval personnel. Unless otherwise expressly authorized by action taken under 18 USC 208( b), all naval personnel who have or acquire an affiliation or a financial interest that creates a conflict or appearance of a conflict with their official duties must report the possible disqualifying interest to the appropriate supervisor who will resolve the matter according to SECNAVINST 5370.2. If it is determined that the individual should be disqualified from participation in any official activities that are related to the conflicting interest, a formal disqualification notice must be sent to the concerned individual's appropriate supervisor and immediate subordinates. If the individual cannot adequately perform his or her official duties after such disqualification, he or she must discontinue such involvement or be removed from that position.
Naval personnel need not disqualify themselves under this section for holding shares of a widely held diversified mutual fund or regulated investment company. Such holdings are exempted as being too remote or inconsequential to affect the integrity of the services of government personnel.

Using Inside Information
Naval personnel must not use, directly or indirectly, inside information to further a private gain for themselves or others if that information is not generally available to the public and was obtained by reason of their DOD positions.

Using Naval Positions
Naval personnel must not use their official positions to induce, restrain, dominate, or in any manner unlawfully influence any person, including subordinates, to provide any benefit, financial or otherwise, to themselves or others.

Dealing with Present and Former Military and Civilian Personnel
Naval personnel must not knowingly deal on behalf of the government with present or former government personnel, military or civilian, whose participation in the transaction would be in violation of a statute, regulation, or policy set forth in SECNAVINST 5370.2. While all applicable prohibitions are within the prohibitions of this paragraph, attention is directed to the prohibition on retired Regular officers selling to the government through the department in which they hold a retired status, 18 USC 281; the prohibition on former personnel acting as an agent or attorney for anyone other than the United States in connection with claims against the government, 18 USC 207; and the prohibition on paying appropriated funds to retired Regular officers who are selling to certain government agencies, 37 USC 801( c).
Commercial Soliciting by Naval Personnel

To eliminate the appearance of coercion, intimidation, or pressure from rank, grade, or position, full-time naval personnel, except special government employees and Reserve enlisted personnel on active duty for training, are prohibited from making personal commercial solicitations or sales to DOD personnel who are junior in rank or grade, at anytime, on or off duty.
This limitation includes, but is not limited to, the solicitation and sale of insurance, stocks, mutual funds, real estate, and any other commodities, goods, or services. This prohibition does not apply to the one-time sale by an individual of his or her own property or privately owned dwelling, or to the off-duty employment of naval personnel as employees in retail stores or other situations not including solicited sales. In regard to solicitation by civilian personnel, the limitation applies only to solicitation of personnel under the supervision, at any level, of the solicitor.

Assignment of Reserve Personnel for Training
Naval personnel who are responsible for assigning Reserves for training must not assign them to duties in which they will obtain information that could be used by them or their private sector employers to gain unfair advantage over civilian competitors.

Gratuities
Except as discussed later in this section, naval personnel and their spouses, minor children, and members of their households must not solicit, accept, or agree to accept any gratuity for themselves, members of their families, or others, either directly or indirectly from, or on behalf of, a defense contractor. A defense contractor is a person or other entity that fulfills one or more of the following criteria:
. Is engaged in or seeks business or financial relations of any sort with any DOD component

. Conducts operations or activities that are either regulated by a DOD component or significantly affected by DOD decisions
. Has interests that may be substantially affected by the performance of the official duties of DOD personnel

This general prohibition does not apply to the situations below:

(1) The continued participation in employee welfare or benefit plans of a former employee when permitted by law and approved by the appropriate standards of conduct.
(2) The acceptance of unsolicited advertising or promotional items that are less than $5 in retail value.
(3) Trophies, entertainment, prizes, or awards for public service or achievement or given in games or contests that are clearly open to the public or that are officially approved for naval personnel participation.

(4) Things available to the public (such as university scholarships covered by DOD Directive 1322.6 and free exhibitions by Defense contractors at public trade fairs).
(5) Discounts or concessions extended throughout the Navy and Marine Corps that are realistically available to all naval personnel.

(6) Participation by naval personnel in civic and community activities when the involvement of Defense contractors is remote from the business purposes of any contractor who is sponsoring, supporting, or participating in the activity (for example, participation in a little league or Combined Federal Campaign luncheon that is subsidized by a Defense contractor).

(7) Social activities engaged in by officers in command and other naval officials, or their representatives, with local civil leaders as part of community relations programs of the Department of the Navy according to SECNAVINST 5720.44.

(8) The participation of naval personnel in widely attended gatherings of mutual interest to government and industry, sponsored or hosted by industrial, technical, and professional associations (not by individual contractors), provided that they have been approved according to DOD Instruc-tion 5410.20.

(9) Situations in which participation by naval personnel at public ceremonial activities of mutual interest to industry or local communities and the Department of the Navy serves the interest of the government and acceptance of the invitation is approved by the commanding officer or other head of the activity to which the invited personnel are attached.
(10) Contractor-provided transportation, meals, or overnight accommodations in con-nection with official business when arrangements for government or commercial transportation, meals, or accommodations are clearly impractical and the individual reports the circumstances in writing to his or her appropriate supervisor as soon as possible.

(11) Attendance at promotional vendor training sessions when the vendor's products or systems are provided under contract to DOD and the training is to facilitate the use of those products or systems by naval personnel.
(12) Attendance or participation of naval personnel in gatherings, including social events such as receptions, that are hosted by foreign governments or international organizations, provided that the acceptance of the invitation is approved by the commanding officer or other head of the activity to which the invitee is attached or, when there is doubt as to the propriety of acceptance, by higher authority. (See SECNAVINST 1650.1 for further informa-tion pertaining to gifts from foreign govern-ments.)

(13) Customary exchanges of gratuities between naval personnel and their friends and relatives or the friends and relatives of their spouses, minor children, or members of their household where the circumstances make it clear that it is that relationship rather than the business of the persons concerned that is the motivating factor for the gratuity and where it is clear that the gratuity is not paid for by any entity. (14) Situations in which, in the sound judgment of the individual concerned or his or her superior, the government's interest will be served by naval personnel participating in activities otherwise prohibited. In any such case, a written report of the circumstances must be made by the individual or his or her appropriate supervisor in advance of acceptance or, when an advance report is not possible, within 48 hours after acceptance, to the appropriate supervisor, if he or she is not otherwise aware of the acceptance, and to the appropriate standards of conduct counselor or deputy counselor.

Naval personnel who receive gratuities, or have gratuities received for them in circumstances not in conformance with the standards of this section, must promptly report the circumstances to the appropriate supervisor for a determination as to the proper disposition. The appropriate supervisor must consult with the standards of conduct counselor or deputy counselor.

Procedures with respect to recruit officer training command (ROTC) staff members are set forth in DOD Directive 1215.8.

Receipts in Connection with Official Travel
The acceptance of accommodations, subsistence, or services, furnished in kind, in connection with official travel from sources other than those prohibited from our previous discussion is authorized only when the individual is to be a speaker, panelist, project officer, or other bona fide participant in the activity attended and when such attendance and acceptance is authorized by the order-issuing authority as being in the overall government interest. Except as noted above, naval personnel may not accept personal reimbursement from any source for expenses incident to official travel, unless authorized by their commanding officer or the head of their activity, consistent with guidance by the appropriate standards of conduct counselor (pursuant to 5 USC 4111 or other authority). Rather, reimbursement must be made to the government by check payable to the Treasurer of the United States. Personnel will be reimbursed by the government according to regulations related to reimbursement. In no case may naval personnel accept reimbursement, either in kind or in cash, that is extravagant or excessive in nature. When accommodations, subsistence, or
services in kind are furnished to naval personnel
by nongovernment sources, appropriate deduc-tions
must be reported and made in the travel per
diem, or other allowance payable.

Prohibitions of Contributions or Presents to Superiors

Naval personnel must not solicit a contribution from other DOD personnel for a gift to an official superior, make a donation or a gift to an official superior, or accept a gift from other DOD personnel subordinate to themselves. This requirement, however, does not prohibit gifts or contributions of nominal value on special occasions, such as marriage, illness, transfer, or retirement, provided any gifts acquired with such contributions do not exceed a reasonable value.

Use of Government Facilities, Property, and Manpower

Naval personnel must not directly or indirectly use, take, dispose of, or allow the use, taking, or disposing of, government property leased to the government, for other than officially approved purposes. Government facilities, property, and manpower (such as stationery, stenographic and typing assistance, Mimeograph, and chauffeur services) must be used only for official government business. Naval personnel have a positive duty to protect and conserve government property. These provisions do not prevent the use of government facilities for approved activities in furtherance of naval community relations, provided they do not interfere with military missions or government business. See SECNAVINST 5720.44 for community relations guidance.

Use of Civilian and Military Titles or Position in Connection with Commercial Enterprise

All naval personnel, except special government employees, are prohibited from using their grade, rank, title, or position in connection with any commercial enterprise or in endorsing any commercial product. This does not prevent author identification for materials published according to DOD procedures. A commercial enterprise is any entity that engages in activities that produce income as defined in Int. Rev. Code of 195461, and that has not been exempted from paying income taxes pursuant to Int. Rev. Code of 1954, 501( a).

All retired military personnel and all members of Reserve components, not on active duty, are permitted to use their military titles in connection with commercial enterprises, provided that they indicate their Inactive Reserve or Retired status. If, however, such use of military titles in any way casts discredit on the Department of the Navy or the Department of Defense or gives the appearance of sponsorship, sanction, endorse-ment, or approval by the Department of the Navy or the Department of Defense, it is prohibited. In addition, commanders of overseas installations may further restrict the use of titles including use by retired military personnel and members of Reserve components, not on active duty, in overseas areas.
Outside Employment of DOD Personnel

Naval personnel must not engage in outside employment or other outside activity, with or without compensation, that interferes with, or is not compatible with, the performance of their government duties, that may reasonably be expected to bring discredit on the government or the Department of the Navy, or is otherwise inconsistent with the requirements of this instruction, including the requirements to avoid actions and situations that reasonably can be expected to create the appearance of conflicts of interests. Enlisted naval personnel on active duty may not be ordered or authorized to leave their post to engage in a civilian pursuit, business, or professional activity if it interferes with the customary or regular employment of local civilians in their art, trade, or profession. Active duty Regular officers of the Navy and Marine Corps may not be employed by any person furnishing naval supplies or war materials to the United States. If such an officer is so employed, his or her entitlement to pay ceases for so long as he or she is so employed. Off-duty employment of military personnel by an entity involved in a strike is permissible if the person was on the payroll of the entity before the beginning of the strike and if the employment is otherwise in conformance with the provisions of this instruction. After a strike begins and while it continues, no military personnel may accept employment by that involved entity at the strike location. Naval personnel are encouraged to engage in teaching, lecturing, and writing. Naval personnel, however, must not, either for or without com-pensation, engage in activities that are depend-ent on information obtained as a result of their government employment, except when the information has been published or is generally available to the public, or it will be made generally available to the public and the official authorized to release such information to the public gives written authorization for the use of nonpublic information on the basis that the use is in the public interest. Civilian Presidential appointees in the Department of the Navy must not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance, the subject matter of which is devoted substantially to naval responsibilities, programs, or operations or that draws substantially from official material that has not become part of the body of public information.

Gambling, Betting, and Lottery
While on government owned, leased, or controlled property, otherwise while on duty for the government, naval personnel must not partici-pate in any gambling activity, including a lottery or pool, a game for money or property, or the sale or purchase of a number slip or ticket. The only exceptions are for activities that have been specifically approved by the Secretary of the Navy.

Indebtedness
Naval personnel must pay their just financial obligations in a timely manner, particularly those imposed bylaws (such as federal, state, and local taxes), so that their indebtedness does not adversely affect the government as their employer. The Department of the Navy is not required to determine the validity or amount of disputed debts.

RESPONSIBILITIES FOR ACTIONS
The basic responsibility for complying with the requirements of this instruction rests with individual personnel concerned, but the primary responsibility for ensuring such compliance must rest with officers exercising command or similar authority over personnel. Each commanding officer or head of a command, a bureau, an office, or an activity is specifically responsible for the following actions:

. Review applicable information contained in SECNAVINST 5370.2 to all naval personnel within his or her organization at least semiannually, in a manner that will ensure familiarity and compliance with the pertinent provisions of this instruction by all personnel. (This is a continuing requirement and is in addition to the initial briefing required.)
. Establish and execute the procedures and controls established in this instruction so that all naval personnel within the organization who are required to file confidential statements of affiliations and financial interests (DD Form 1555) do file them in a timely manner, and that such statements are promptly and carefully reviewed.

. Make determinations pursuant to SECNAVINST 5370.2 and 18 USC 208( b) with respect to disqualification of personnel within the organization from performing duties in which they have conflicts or apparent conflicts of interests.
. Make sure reservists detailed to perform active duty for training at the organization are assigned duties that will minimize the possibility that they may obtain information that could be used by them or their employers to gain an unfair advantage over civilian competitors.

. Receive and take prompt and appropriate action on reports concerning acceptance of gratuities or other violations of SECNAVINST 5370.2 or related statutes by personnel within the organization.