GOVERNMENT ETHICSGOVERNMENT ETHICSAND

DOING POSTAL BUSINESSDOING POSTAL BUSINESSIN THE 21st CENTURYIN THE 21st CENTURY

2000 National Executive Conference

October 13, 2000

Wendy A. Hocking

Chief Counsel, Ethics and Federal Requirements

USPS Law Department

21st CENTURY POSTAL SERVICE

WHAT HAS CHANGED

ABOUT THE BUSINESS

OF THE POSTAL SERVICE

IN THE LATE 20th

AND BEGINNING OF

THE 21st CENTURIES?

It might be easier to list the ways in which we’ve stayed the same...

21st CENTURY ETHICS

WHAT’S CHANGED ABOUT

GOVERNMENT ETHICS LAWS

IN THE 21st CENTURY?

Almost nothing, so far.

DOING BUSINESS

So what do you really need to know

about the ethics laws

to participate in

new and exciting postal business

-- without personal risk --

in the 21st century?

DOING BUSINESS: TODAY’S “TAKE-AWAYS”

Appearances count “Loose lips sink ships” -- and

careers Use a bright line to separate

“personal” and “postal” Beware of those seeking “favors” Ask for help when you need it!

DOING BUSINESS

TWO FRAMEWORKS: Internal Compass (personal ethics)

Specific Rules (government ethics)

Use your internal compass, supported by the rules.

DOING BUSINESS

A) Conflicting financial interests, and Insider trading

B) Seeking and Post-employment

C) Impartiality, Misuse of position, and Endorsements

D) Gifts from outside sources, and Gifts between employees

CONFLICTING FINANCIAL INTERESTS

ALICE has stock in ABC Corp.

She is the manager of a postal unit exploring possible alliances. ABC is a strong contender for an alliance.

Conflict?

CONFLICTING FINANCIAL INTERESTS

Questions:

1. How much stock? (<5K, no conflict)

2. What is Alice’s decision-making authority in this matter?

3. What if it was her husband’s stock? Or if ABC was her son’s employer?

4. Appearance issues?

5. Consider recusal, waiver, divestiture.

INSIDER TRADING

ALEX is a PCES employee working on a huge postal contract with a publicly-traded company. The contract will be announced the first week in December. At Thanksgiving dinner, Alex mentions the deal. His in-laws buy stock in the company before the announcement.

Conflict?

INSIDER TRADING

Questions:

1. Was the information proprietary?

2. Did the in-laws have a need to know?

3. Did the in-laws make the purchase on the basis of the information Alex shared?

4. What if the purchase was made after the public announcement?

5. Does Alex know a good attorney?

SEEKING EMPLOYMENT

BART is a PCES manager nearing retirement. A firm he’s worked with often over the years asks him to consider a job with the firm after he retires. He says he isn’t interested at the moment, but will keep it in mind.

Any problems?

SEEKING EMPLOYMENT

PROBABLY NO -- if neither Bart nor anyone who reports to him are currently conducting postal business with the firm.

POSSIBLY YES -- if either Bart or those who report to him are working on matters involving the firm.

Better to say “No,” unequivocally, until you are ready to start the discussion. Then, recusal

may be necessary.

POST-EMPLOYMENT

BARBARA, a former national program manager, left USPS to work for NEWBIZ .com. Two months into her new job (and three months after leaving USPS), Barb arranges a meeting with postal employees where she asks them to consider a partnership with NEWBIZ.com.

Is this a problem?

POST-EMPLOYMENT

Possibly. What was Barb’s USPS salary when she

left? Was she working on anything involving

NEWBIZ.com before she left? How was the meeting arranged? Which

USPS employees attended? Would the meeting have occurred if NEWBIZ.com’s representative was not a former postal employee?

IMPARTIALITY

CARLOS, a District Manager, frequently socializes with high level employees of a large mailer in his District. He often attends sporting events, goes to dinner, and even vacations with some of them.

Is this a problem?

IMPARTIALITY

What if the mailer has a problem with getting its mail accepted, and wants Carlos to get involved?

Could there be an appearance of impropriety?

If a reasonable person who knows the facts could legitimately question his fairness, Carlos should not act on the matter.

MISUSE OF POSITION

CELIA, a Law Department manager, is contacted by a friend whose wife has vast expertise in E-commerce matters. She’s interested in working for the USPS, and Celia knows there will soon be an opening. Celia recalls that this woman is brilliant and hard-working.

May Celia call the E-folks to get this woman an interview right away?

MISUSE OF POSITION

Celia MAY NOT share or act on information that is not publicly available.

She MAY NOT give anyone special treatment; must honor the procedures in place for handling employment inquiries.

She MAY provide information about where to send an unsolicited job inquiry, or where to find USPS job listings.

MISUSE OF POSITION

Other potential “misuse” situations:

Acquaintance asks for assistance obtaining postal contract

Hometown businessperson just wants “a little help” with a postal problem

Relative requests “inside scoop” about rumor of new post office

ENDORSEMENTS

CRAIG, a Purchasing Manager, writes a letter to a postal vendor to express thanks for resolving a difficult situation. In the vendor’s next newspaper ad, Craig is quoted: “This vendor is ‘the all-time greatest’ -- USPS Purchasing Manager Craig Gracious.”

Problem?

ENDORSEMENTS

An endorsement of a product or service can only be provided if it is based on:

1) documentation that the product or service complied with postal requirements or standards, OR

2) official USPS recognition given to the product/service under a postal program that recognizes accomplishments in support of USPS mission

GIFTS FROM OUTSIDE SOURCES

DENNIS, a technology manager, visits the HQ location of a large computer supplier. During Dennis’ visit, employees of the computer company:

pick him up at the airport and drive him to HQ;

take him out to lunch, and at the end of the day, give him a t-shirt,

hat, coffee mug, and lap-top, all emblazoned with the company logo.

GIFTS FROM OUTSIDE SOURCES

Is there a problem with any of that? Transportation Meal Merchandise

Consider:

“Intent to influence”

Prohibited source

$20 rule/$50 annual limit

Appearances

GIFTS FROM OUTSIDE SOURCES

Variation 1:

DENNIS is invited by the computer company to attend -- free -- a conference it’s sponsoring. May he accept?

Variation 2:

DENNIS is invited by the company to a holiday party. May he attend?

WIDELY ATTENDED GATHERINGS

This is an exception to the gifts rule.

Need to know: More than 75 people expected to attend? Diversity of views represented? Cost per person less than $1,000 ($250 if the

invitation came from non-sponsor)? Does Postal Service interest in employee’s

attendance outweigh appearance of undue influence?

You are encouraged to send invitations to ethics officials for written advice

GIFTS BETWEEN EMPLOYEES

DARCY, an Area Finance Manager, receives a Montblanc pen from a member of her staff as a congratulatory gift for getting a VP award at the NEC. May she keep it?

What if the pen was from her entire staff?

What if the staff just threw her a party instead of getting her the pen?

GIFTS BETWEEN EMPLOYEES

Generally -- don’t accept:

gifts from subordinates gifts from anyone who makes less

than you do gifts worth more than $10

GIFTS BETWEEN EMPLOYEES

OK: Food/refreshments shared in the office Hospitality at residence Leave-sharing under the regulations

For “Regularly occurring occasions,”

$10 limit, including group gift

For “Special infrequent occasions,”

Items appropriate to the occasion

CONCLUSION

20th Century rules still apply to 20th Century rules still apply to 21st Century employees 21st Century employees

Compliance with the ethics laws Compliance with the ethics laws and regulations is your personal and regulations is your personal responsibilityresponsibility

When in doubt,

contact an ethics official!