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compliance  with  the  standards  of  conduct  and related requirements within the Department of the Navy. The  contents  of  this  instruction  apply  to  all naval personnel and, when applicable, to retired naval  personnel  and  members  of  the  Reserve components. Noncompliance with this instruction may  result  in  disciplinary  or  punitive  action. Appropriate  administrative  measures  must  be taken  to  prevent  and  correct  noncompliance  to this  instruction  in  a  timely  manner. You   should   become   familiar   with   the following  terms  because  they  are  mentioned  often during  our  discussion. Naval   personnel—All   civilian   officers   and employees and all active duty military personnel of the Department of the Navy, including special government   employees   and   personnel   of nonappropriated  fund  instrumentalities. Gratuity—Any  gift,  favor,  entertainment, hospitality,   transportation,   loan,   any   other tangible  item,  and  any  intangible  benefit;  for example,  discounts,  passes,  and  promotional vendor training given or extended to, or on behalf of,   naval   personnel   or   their   spouses,   minor children, or households, for which a fair market value  is  not  paid  by  the  recipient  or  the  U.S. Government. Appropriate Supervisor—Superior within the chain  of  command  who  knows  the  duties  of  the naval  personnel  concerned  and  can  best  determine whether  a  conflict  of  interest  exists  for  such personnel.   This   person   will   ordinarily   be   the immediate  superior  of  the  person  concerned.  Each commanding officer and department head should make   sure   all   personnel   know   who   their appropriate  supervisor  is. POLICIES  GOVERNING  THE CONDUCT  OF  NAVAL  PERSONNEL Naval  personnel  must  become  familiar  with the range of their authority and the limitations placed  on  them  concerning  activities  for  which they  have  responsibility.  To  do  this,  they  must direct their attention to the prohibitions that apply to  the  conduct  of  naval  personnel. Naval personnel are prohibited from making or  recommending  any  expenditures  of  funds  or taking  or  recommending  any  action  that  is  known to   be   a   violation   of   U.S.   laws,   Executive orders,  or  applicable  directives,  instructions,  or regulations.  If  you  are  in  doubt  whether  your proposed actions or decisions comply to the terms of  regulation  or  law,  you  should  consult  legal counsel   or,   if   appropriate,   a   standards   of conduct   counselor   or   deputy   counselor   to make   sure   your   actions   or   decisions   are   the proper and lawful conduct of Navy programs and activities. Conduct Prejudicial to the Government Conduct that is prejudicial to the government tends  to  injure  or  impair  the  attitude  of  the  public toward   the   government.   Whether   specifically prohibited or not in this instruction, you should avoid  any  action  that  may  be  prejudicial  to  the government.  Conduct  prejudicial  to  the  govern- ment  might  result  in  or  reasonably  be  expected to  create  the  appearance  of  the  following: Using  public  office  for  private  gains Giving preferential treatment to any person or entity Impeding   government   efficiency   or economy Losing   complete   independence   or impartiality Making   a   government   decision   outside official  channels Adversely  affecting  the  confidence  of  the public in the integrity of the government Personal  Judgment As  stated  earlier,  all  naval  personnel  must adhere  strictly  to  the  standards  of  conduct  and related requirements. In some instances, standards are  imposed  that  require  you  to  exercise  your  own personal  judgment.  You  must  consider  each  of these instances carefully and prepare to account for the manner in which you judged the situation. This is particularly important in a situation that involves   acceptance   of   hospitality   or   favors from   another seeking  to  do Defense. person  or  entity  who  do  or  are business  with  the  Department  of AII-2

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