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Page Title: Policy -Continued
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(2)  The  attention  of  naval  personnel  is  directed  to  the  statutory prohibitions  which  apply  to  the  conduct  of  naval  personnel. (3) Naval personnel must not make or recommend any expenditure of funds or take or recommend any action known or believed to be in viola- tion  of  U.S.  laws,  executive  orders,  or  applicable  directives,  instructions,  or regulations. (4)  In  cases  of  doubt  of  the  propriety  of  a  proposed  action  or decision  in  terms  of  regulation  or  law,  naval  personnel  must  consult  legal counsel   or,   if   appropriate,   a   Standards   of   Conduct   counselor   or   deputy counselor  to  ensure  the  proper  and  lawful  conduct  of  naval  programs  and activities. b.   Conduct   prejudicial   to   the   government.   Naval   personnel   must avoid  any  action,  whether  or  not  specifically  prohibited  by  this  instruction, which might result in or reasonably be expected to create the appearance of (1)  using  public  office  for  private  gains, (2)  giving  preferential  treatment  to  any  person  or  entity, (3)  impeding  government  efficiency  or  economy, (4)  losing  complete  independence  or  impartiality, (5)  making  a  government  decision  outside  official  channels,  or (6) adversely affecting the confidence of the public in the integrity of  the  government. c.  Standards  of  personal  judgment.  All  naval  personnel  will  adhere strictly to the Standards of Conduct and related requirements prescribed in this instruction. In some instances, standards are imposed which require the exercise  of  personal  judgment.  Naval  personnel  must  consider  each  such instance  carefully  and  be  prepared  to  account  for  the  manner  in  which  the judgment  is  exercised.  This  is  particularly  true  in  situations  which  involve acceptance  of  hospitality  or  favors  from  persons  or  entities  who  do,  or  seek to  do,  business  with  the  Department  of  Defense. d.  Dealings  with  business  and  industry  representatives.  Persons  who represent  the  government  in  business  dealings  with  representatives  of  industry have positions of trust and grave responsibility which require them to observe the highest ethical standards. Practices which may be accepted in the private business world are not necessarily acceptable for naval personnel. No person will  allow  himself  to  be  placed  in  a  position  in  which  a  conflict  of  interest might arise or might justifiably be suspected. Such a conflict of interest may arise or appear to arise by reason of the acceptance of gratuities, or by any other action which could influence or reasonably be interpreted as influenc- ing  the  strict  impartiality  that  must  prevail  in  all  business  relationships involving the government. Strict impartiality is often particularly difficult to maintain when business relationships are allowed to become overly personal. Naval personnel should at all times ensure that persons doing business or at- tempting to do business with the Department of Defense, or representing such entities, are not permitted to ingratiate themselves to the extent that naval personnel  hesitate  to  deny  requests  for  special  treatment  made  by  such persons or otherwise to follow the rule of strict impartiality when dealing with such  persons  in  their  official  capacities.  Acceptance  of  gratuities  (no  matter how innocently tendered or received) from those who have or seek business dealings with the Department of the Navy maybe a source of embarrassment to  the  department  and  to  the  naval  personnel  involved,  may  affect  the objective judgment of the recipient, and may impair public confidence in the integrity  of  business  relations  between  the  department  and  industry.  It  is emphasized  that  prohibited  conflicts  and  apparent  conflicts  of  interests  can sometimes   arise   even   from   relationships   and   transactions   which   the personnel concerned perceive as inconsequential. Where there is doubt as to AII-10

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