Welcome to the Office of the Secretary of Defense

1. Welcome to theOffice of the Secretary of Defense Annual Ethics Training 2014 Presented by USUHS/OGC

2. ethics training requirement • This training module is intended for designated personnel at USUHS. • If you are looking for Government purchase card training, you are in the wrong place. Stop here, and click on the following links for: Purchase Card Training: http://fss.gsa.gov/webtraining/trainingdocs/smartpaytraining/index.cfm Travel Card Training: http://fss.gsa.gov/webtraining/trainingdocs/traveltraining/index.cfm • If you are looking for online training to satisfy your 2014 annual ethics training requirement, you have arrived!

3. INTRODUCTION • This training is modeled from DoD real-world situations to illustrate potential ethics issues and their appropriate resolution. • This training qualifies as annual ethics training for financial disclosure report filers. • If you are not sure you should take this training, please ask your supervisor or training official for clarification. • To receive credit for this training, you must submit the Certificate of Completion to your ethics official or ethics action officer (training coordinator). The certificate can only be reached after completing ALL portions of this training.

4. INSTRUCTIONS • SCREEN RESOLUTION. If you cannot see the entire slide in your screen, change your zoom level to 75% from the bottom right corner of your explorer window. • Personnel must complete this training from 0800-1700 when ethics officials are available to answer questions. • Contact Your Local Ethics Official - If you have questions about the content while taking this training, please contact an ethics counselor at (301)295-3028.

5. TAKE AWAY! • If you have questions on how the ethics rules may apply to a particular situation, contact your ethics counselor before taking action. • The law protects you from disciplinary action for violating an ethics regulation where you engaged in conduct in good faith reliance upon the advice of an ethics counselor, provided you made full disclosure of all relevant circumstances when seeking the guidance.

6. TOPICS • Applicable ethics laws and regulations • Conflict of Interest Statutes • Other Authorities • Relationship with and Participation in Non-Federal Entities (NFEs) • Official Capacity • Personal Capacity • Other Implicated Rules • Post-Government employment rules

7. Conflict of Interest Statutes

8. Conflict of Interest Statutes

9. Conflict of Interest Statutes

10. OTHER AUTHORITIES • Executive Orders • 14 Principles of the Standards of Conduct • Ethics Pledge for Political Appointees • Ethics in Government Act, as amended. • 5 C.F.R., Part 2635 & 3601 • DoD 5500.7-R, Joint Ethics Regulation

11. 14 Principles • The following slides include the 14 principles from which the standards of conduct are derived. • When in doubt, you should turn to these principles to determine how to resolve a situation

12. 14 Principles • Public service is a public trust, requiring employees to place loyalty to the Constitution, the laws and ethical principles above private gain. • Employees shall not hold financial interests that conflict with the conscientious performance of duty. • Employees shall not engage in financial transactions using nonpublic government information or allow the improper use of such information to further any private interest.

13. 14 Principles • An employee shall not solicit or accept any gift or other item of monetary value from any person or entity seeking official action from, doing business with, or conducting activities regulated by the employee's agency, or whose interests may be substantially affected by the performance or nonperformance of the employee's duties (except as specifically permitted). • Employees shall put forth honest effort in the performance of their duties.

14. 14 Principles • Employees shall not knowingly make unauthorized commitments or promises of any kind purporting to bind the government. • Employees shall not use public office for private gain. • Employees shall act impartially and not give preferential treatment to any private organization or individual.

15. 14Principles • Employees shall protect and conserve federal property and shall not use it for other than authorized activities. • Employees shall not engage in outside employment or activities, including seeking or negotiating for employment, that conflict with their official government duties and responsibilities.

16. 14Principles • Employees shall disclose waste, fraud, abuse, and corruption to appropriate authorities. • Employees shall satisfy in good faith their obligations as citizens, including all just financial obligations, especially those that are imposed by law (such as paying their federal, state, or local taxes).

17. 14Principles • Employees shall adhere to all laws and regulations that provide equal opportunity for all Americans regardless of race, color, religion, sex, national origin, age, or handicap. • Employees shall endeavor to avoid any actions creating the appearance that they are violating the law or the Standards of Ethical Conduct for Employees of the Executive Branch.

18. DoD Specific Guidance • Specific guidance for DoD personnel may be found in DoD 5500.7‑R, Joint Ethics Regulation, and at the DoD Standards of Conduct Office website: http://www.dod.mil/dodgc/defense_ethics/. • Easy to understand guidance for DoD personnel can be found in the “Employees’ Guide to the Standards of Conduct,” which is located in the “SOCO Publications and Handouts” section of the “Ethics Resource Library” on the Standards of Conduct Office website.

19. Relationship with and Participation in Non-Federal Entities ASK YOURSELF: Are you acting in your Official or Personal Capacity?

20. Ethics Principles Implicated • You may not use Government property for other than authorized purposes. 5 C.F.R. § 2635.101(b)(9) • You may not use public office for private gain. 5 C.F.R. § 2635.101(b)(7) • You may not give preferential treatment to any private organization or individual. 5 C.F.R. § 2635.101(b)(8) • You may not participate in official matters that conflict with personal interests. 5 C.F.R. §§ 2635.402 & 2635.502 • TIP: Do not co-mingle personal and official roles!

21. What or Who are NFEs? • A non-Federal entity (NFE) is generally a self-sustaining, non-Federal person or organization, established, operated, and controlled by individuals acting outside the scope of any official capacity as officers, employees, or agents of the Federal Government. This includes: • Private corporations (e.g., Defense contractors) • Private organizations (e.g., think tanks and Federally Funded Research and Development Centers (FFRDCs)) • Entities closely linked to DoD or your office (e.g., The Henry Jackson Foundation, Credit Unions, spousal clubs and military professional organizations) • Charities (e.g., wounded warrior charities and military relief societies) • Organizations with Congressional charters (e.g., Red Cross) • Local and State entities

22. Acting before an NFE

23. Representing DoD to NFEs Official Capacity Personal Capacity • You may represent DoD’s interest before an NFE only where SecDef (or his designee) designates you in writing as DoD’s LIAISON to the NFE. • You may informally attend meetings as a DoD official without being DoD’s representative. • You may serve as an officer of an NFE only if it will not conflict with your official duties, and does not require you to represent the NFE back to the U.S. Government. You must do so while off duty with an approved outside activity

24. Representing DoD to NFEs As a DoD Liaison: (official capacity) • You represent only DoD views & interests (non-binding) • You may not: • Assist in management or control of the NFE, like vote as a board member or officer. • Engage in representing the NFE interests to third parties, especially back to the U.S. Government. • NFE may not identify you on their website

25. Advising or Managing NFEs Personal Capacity Official Capacity • Never, except in very rare instances where DoD statutory authority permits it and DoD General Counsel approves. • Permissible, if it does not create a conflict with your official duties, provided it is exclusively outside the scope of your official duties, and you were not invited to serve in this capacity as a result of your official position. • TIP: Keep your supervisor apprised—beware of violating 18 U.S.C. §§ 203, 205 & 208.

26. Advising or Managing NFEs In your official capacity: (RARE!) • You may not serve in your official capacity in the management of an NFE unless the NFE is a designated entity or serving on the NFE is authorized by the DoD General Counsel (GC) and relevant Service Secretary. • Currently the only designated entities are the four military relief societies.

27. Advising or Managing NFEs In your official capacity: (RARE!) • Other organizations may be designated upon written request to the DoD GC if they are non-profit and meet one of the following criteria: (1) Regulate service academy athletic programs; (2) Regulate international athletic competitions; (3) Accredited service academies and other military schools; or (4) Regulate military health care. • Even if designated, you may not officially manage a NFE unless authorized by the relevant Service Secretary, in writing, with the concurrence of DoD GC. The authorization must be specific and detailed, identifying the entity, the DoD position or individual designated, and scope of involvement. The authorization must also be published in the Federal Register.

28. Standard Setting or Professional NFEs Official Capacity Personal Capacity • SecDef (or designee) may appoint & authorize DoD personnel to hold fiduciary positions in Professional or Standards setting NFEs. • DoD 4120.24-M • In your personal capacity, you may hold a fiduciary position with an NFE if its does not conflict with your official duties. • TIP: DoD cautions against this where inadvertent violations are likely—beware of violating 18 U.S.C. §§ 203, 205 & 208.

29. Attending NFE Events

30. Attending NFE Events Official Capacity Personal Capacity • Your supervisor (or an agency designee) may authorize your attendance at an NFE event at DoD expense if it serves a legitimate official purpose. E.g., conference, seminar, meeting, or training. • On your own time and at your own expense, you may attend NFE events in your personal capacity. • TIP: Beware of inadvertently appearing to act in your official capacity.

31. Attending NFE Events Official Capacity Personal Capacity Example: • Your supervisor sends you to an annual conference, held by a defense association, to report back on new trends and disseminate DoD information to private industry. Example: • You may attend the conference of an association for which you are a member (e.g., a convention related to a personal hobby).

32. Attending NFE Events FACT PATTERN: • Abby is a career Department of Defense (DoD) civil servant, YA-3 (equivalent to a GS-13). Her position is in a professional series (like an engineer, contracting officer, comptroller, or attorney). In her personal capacity, she is an officer of the InterAgency Group (IAG), a NFE that discusses emerging issues related to her profession and, consequently, her official DoD duties. Abby is not compensated for her work for IAG. There is no charge for attending the IAG event. When she speaks before IAG, the speech does not have a direct and predictable effect on the financial interest of IAG. • NOTE: The same rules apply for active duty service members unless otherwise specified.

33. Attending NFE Events FACT PATTERN: (continued) • Question 1:  Can Abby be an officer of IAG? Choose the best answer: A. No, Abby cannot hold an outside position of any kind. B. Only if she does so in her official capacity. C. Maybe. D. Yes, if she does so in her personal capacity. Which answer is correct?

35. Attending NFE Events FACT PATTERN: (continued) • Question 2:  Can Abby attend IAG's monthly hour-long lunch meetings downtown? Choose the best answer: A. No, never since her lunch break is only 30 minutes long. B. Only in her official capacity. C. Only in her personal capacity. D. Sure. Which answer is correct?

37. Attending NFE Events FACT PATTERN: (continued) • Question 3:  Can Abby attend IAG's annual conference to receive training and certification at DoD expense? The IAG conference will provide in-depth training on issues related to Abby's profession, but her position does not require annual training or certification. IAG will provide certification to all attendees that complete the training. Choose the best answer: A. Yes, Abby may attend IAG's annual conference at DoD expense, if she receives approval from an ethics counselor to attend the conference as part of her official duties. B. Yes, Abby may attend IAG's annual conference at DoD expense, if she receives approval from her supervisor to attend the conference as part of her official duties. C. No, Abby is only permitted to attend IAG's annual conference while on leave because her position does not require this training or certification. Which answer is correct?

39. Attending NFE Events FACT PATTERN: (continued) • Question 4:  What if IAG asks Abby to speak at the conference? Choose the best answer: A. If the invitation was sent to her DoD office and addressed using her DoD position/title, Abby may deliver an official speech if assigned by her supervisor. During the speech she must convey the DoD message, but, because Abby is also an IAG officer, she may also convey her personal views if they have been cleared by the Security Office. B. If the invitation was sent to her home and addressed to her as an IAG officer, she may speak in her personal capacity and convey her personal views during the speech. If her supervisor determines that there is a DoD interest in the speech, she may attend under official travel orders and on work hours. C. A & B. D. None of the above. Which answer is correct?

41. Other Implicated Rules

42. Other Ethics Rules • Misuse of Position: Do not allow NFEs to use your official title or position to imply DoD sanction or endorsement of the NFE, its services or activities. E.g., if you are a member or officer of an NFE, do not allow NFE to use your official photo or DoD contact information in their membership directory or website.

43. Other Ethics Rules • Impartiality: Do not take official action which will financially affect an NFE (including a professional association or charity) with which you are actively involved in your personal capacity. E.g., Do not participate in approving a subordinate’s attendance (payment of registration) at NFE conference with which you are personally involved. • TIP: Beware of use of terms like “partnership” & “co-sponsorship,” and use of “Memorandum of Understanding” which imply special status, or DoD sanction or endorsement of the entity, its services or products.

44. Other Ethics Rules • Gifts: Unless an exception applies, DoD personnel may not solicit or accept gifts from prohibited sources (e.g., DoD contractors which include many NFEs) or gifts given because of their position, such as: • Free attendance at conferences • Free meals or travel related expenses E.g., NFE offers of travel, free registration for speaking, etc.

45. Other Ethics Rules • Preferential Treatment: DoD personnel must avoid giving any NFE preferential treatment. • TIP: If you agree to speak at an NFE event, you should be willing & able to speak at other similar events (mission permitting). • TIP: Beware of accepting speaking invitations from your former employer within a year of your departure—this could be a personal conflict of interest as well.

46. Other Ethics Rules • Fundraising: (non-political) • OfficialCapacity – No fundraising for NFE’s during duty hours or in the Federal workplace (except CFC). • Personal Capacity – Permitted, but only on personal time & outside DoD workplace. E.g., Do not use your DoD email to ask for pledges or donations to a charitable event in which you are participating.

47. Other Ethics Rules

48. Other Ethics Rules FACT PATTERN: (continued – other ethics rules) • Question 5:  IAG has asked Abby to "chair" their upcoming annual meeting. As meeting "chair," Abby would be responsible for coordinating topics and speakers, among other duties. May Abby accept? Choose the best answer: A. No, it sounds too much like management of an NFE. B. Yes, because "chairing" a single event does not equate to management of an NFE. C. Yes, but only if there are no conflicts with her official duties. Which answer is correct?

50. Other Ethics Rules FACT PATTERN: (continued – other ethics rules) • Question 6:  IAG is seeking to increase membership, which requires payment of an annual fee. Can Abby send an e-mail to her entire office encouraging relevant DoD personnel to join IAG? Choose the best answer: A. No, Abby cannot send the e-mail. B. Yes, Abby can e-mail her entire office encouraging them to join IAG. C. Yes, Abby can e-mail her entire office, but only if she uses her personal e-mail and makes it clear that she is acting in her personal capacity. D. Yes, Abby can e-mail her entire office, but only if she is acting in her official capacity on behalf of DoD. Which answer is correct?