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Appendix II Standards of Conduct - 14238_159
adversely  affect  a  proper  investigation  of  the matter. 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,  termina- tion, or other appropriate action, as provided by statute  or  administrative  procedures.  Disciplinary actions  must  be  taken  according  to  established personnel  procedures. 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  them- selves 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 AII-4

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