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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
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