business or industrial representatives. You must remember when doing so that you are representing the  government  in  these  business  dealings,  and you must make sure that while you handle them, you   observe   the   highest   ethical   standards. Practices that may be acceptable in the business world may not be acceptable for naval personnel. Avoid  placing  yourself  in  the  position  in  which a conflict of interest might arise or be suspected, Such a conflict of interest may arise or appear to arise when you accept gratuities or engage in any activity  that  would  influence  or  reasonably  be interpreted as influencing the strict impartiality that must be maintained in all business relation- ships   involving   the   government.   When   these business  relations  become  personal,  it  becomes difficult   for   you   to   maintain   the   impartiality required   in   your   relations   with   business   or industrial   representatives.   You   should   at   all times  make  sure  any  person  doing  business  or attempting   to   do   business   with   the   DOD,   or representing  such  entities,  does  not  try  to  gain favor   or   favorable   acceptance   from   you.   You should deny any offers for special treatment from such persons; follow the rule of strict impartiality when  dealing  with  such  persons  in  an  official capacity.  When  you  accept  gratuities  or  favors from  those  who  have  or  seek  business  dealings with the DOD, it may result in embarrassment to the  department  and  to  the  naval  personnel involved. It may also affect your judgment as the recipient  and  impair  the  judgment  of  the  public on the way the government handles its business dealings.   It   must   be   stressed   that   prohibited conflicts  and  apparent  conflicts  of  interest  may sometimes   arise   even   with   relationships   and transactions   that   the   personnel   involved   may perceive  as  unimportant.  When  in  doubt  about the  propriety  of  accepting  gratuities,  attending functions,   or   accepting   other   invitations   of   a hospitable  nature,  you  must  refrain. Preferential  Treatment In  all  your  business  dealings  with  other individuals or firms, special treatment must not be  given  unless  equivalent  treatment  is  also  given to  other  individuals  or  firms  who  are  justifiably entitled  to  such  treatment. ACQUIRING   CONFLICTING FINANCIAL  INTERESTS Naval  personnel  must  avoid  acquiring  or retaining financial interest that would disqualify them  from  performing  their  duties  or  responsi- bilities. The following are some of the more likely situations  in  which  conflicts  of  interest  might arise.  Naval  personnel  have  government  duties  or responsibilities related to business entities— with which they, their spouse, their minor children,  or  household  members  are  associated with   employees,   officers,   owners,   directors, members,  trustees,  partners,  advisors,  or  con- sultants; with   which   they,   their   spouse,   minor children,  or  household  members  are  negotiating or  have  arrangements  for  prospective  employ- ment;  and in   which   they,   their   spouse,   minor children,  or  household  members  have  interest through  ownership  of  stocks,  bonds,  securities, or  other  financial  arrangements,  such  as  trusts, or through participation in pension or retirement plans. 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 policy for the Department of the Navy regarding  participation  by  naval  activities  and naval   personnel   in   the   activities   of   private associations. Equal  Opportunity Naval  personnel  should  scrupulously  adhere to  the  DOD  program  of  equal  opportunity regardless  of  race,  color,  religion,  sex,  age,  or national  origin,  according  to  equal  opportunity directives. Reporting Suspected Violations Naval  personnel  who  have  information  that causes   them   to   believe   someone   has   violated the   standards   of   conduct   should   report   such information to their appropriate supervisor. The matter  will  then  be  brought  to  the  attention  of the  person  concerned  for  a  possible  resolution without   further   command   action   unless   the command  determines  that  such  communication is  not  likely  to  resolve  the  problem  or  will AII-3