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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
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