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Policy -Continued - 10287f_220
the  propriety  of  accepting  gratuities,  attending  functions,  or  accepting  other invitations  of  a  hospitable  nature,  naval  personnel  will  refrain  therefrom. e.  Preferential  treatment.  Special  treatment  must  not  be  accorded  to particular  individuals  or  firms  unless  equivalent  treatment  is  also  accorded to  other  individuals  or  firms  justifiably  entitled  hereto. f.  Acquiring  conflicting  financial  interests.  Notwithstanding  the  fact that they may have filed confidential statements of affiliations and financial interests (DD Form 1555), naval personnel must at all times avoid acquiring or  retaining  financial  interest  which  could  disqualify  them  from  performing their  assigned  duties  or  responsibilities.  Some  of  the  more  likely  situations in  which  conflicts  of  interests  might  arise  are  where  naval  personnel  have government  duties  or  responsibilities  related  to  business  entities— (1) with which they, or their spouses, minor children, or household members  are  associated  as  employees,  officers,  owners,  directors,  members, trustees,  partners,  advisors,  or  consultants, (2) with which they, or their spouses, minor children, or household members  are  negotiating  or  have  arrangements  for  prospective  employment,  or (3)  in  which  they,  or  their  spouses,  minor  children,  or  household members have interests through ownership of stock options, bonds, securities or  other  financial  arrangements,  such  as  trusts,  or  through  participation  in pension  or  retirement  plans. g.  Membership  in  associations.  Naval  personnel  who  are  members  or officers of nongovernmental associations or organizations must avoid activities on behalf of the association or organization that are incompatible with their official  government  positions.  SECNAVINST  5760.4  sets  forth  the  Depart- ment of the Navy policy regarding participation by naval activities and naval personnel  in  the  activities  of  private  associations. h.  Equal  opportunity.  Naval  personnel  must  scrupulously  adhere  to the  DOD  program  of  equal  opportunity  regardless  of  race,  color,  religion, sex,  age,  or  national  origin  in  accordance  with  equal  opportunity  directives. See,   for   example,   SECNAVINST   5350.10. i.  Reporting  suspected  violations.  Naval  personnel  who  have  informa- tion which causes them to believe the other DOD personnel have violated a statute  or  standard  of  conduct  imposed  by  this  instruction  should  bring  the matter  to  the  attention  of  the  appropriate  command  authority.  The  matter thereafter  should  be  brought  to  the  attention  of  the  person  concerned,  for possible  resolution  without  further  command  action,  unless  the  command determines  that  such  communication  is  not  likely  to  remedy  the  problem  or will  adversely  affect  a  proper  investigation  of  the  matter. j.   Resolving   violations.   The   resolution   of   Standards   of   Conduct violations  must  be  accomplished  promptly  by  one  or  more  measures,  such as   divestiture   of   conflicting   interests, disqualification   for   particular assignments,  changes  in  assigned  duties,  termination,  or  other  appropriate action,  as  provided  by  statute  or  administrative  procedures.  Disciplinary actions must be in accordance with established personnel procedures. See par. 6a   following. 6.  Regulations  governing  the  conduct  of  naval  personnel a.   Affiliations   and   financial   interests,   Naval   personnel   must   not engage in any personal, business, or professional activity, or receive or retain any  direct  or  indirect  financial  interest,  which  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 AII-11

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