avoid any conflict of interest that might arise between the employees' interests and their government duties, and to avoid the appearance of favoritism or preferential treatment by the government toward its employees. For purposes of this rule, reserve officers are not considered government employees, but they are considered SGEs. This rule does not prevent awarding a contract to an SGE unless the federal contract arises directly out of the reserve officer’s Generally, reserve officers, because of their SGE status, are treated the same as regular employees under the standards of ethical conduct for employees of the Executive Branch, 5 C.F.R. part 2635. The standards of ethical conduct only apply to Reserve enlisted members while they are on active duty or drilling. For example, reserve officers (at all times) and Reserve enlisted members (while on active duty or during drills) are subject to 5 C.F.R. § 2635.202(a), which prohibits the acceptance of gifts from a “prohibited source” and gifts given because of an employee’s official position. The definition of “prohibited source” includes any person seeking official action from the employee’s agency, doing or seeking to do business with the employee’s agency, conducting activities regulated by the The standards of conduct generally prohibit an employee from receiving outside compensation for speaking, teaching or writing activities that relate to the employee’s official duties. Such activities may relate to an employee’s official duties in several different ways: if the activity is performed as part of the employee’s official duties; if the invitation to engage in the activity was extended primarily because of the employee’s official position rather than expertise in the subject matter; if the invitation or offer of compensation was extended by someone with interests that may be affected substantially by the employee’s duties; or if the information conveyed through the activity draws substantially on non-public information obtained through the employee’s government service. SGEs, like all employees, are prohibited from receiving compensation for activities that are related to their official duties in any of All federal employees, including SGEs, are equally subject to certain restrictions on personal fundraising for nonprofit organizations. These include restrictions on the use of official title, position and authority, and the solicitation of subordinates. 5 C.F.R. § 2635.808(c). To put in another way, no Coast Guard member may use their official status or official time to fundraise except in four instances: (1) the annual Combined Federal Campaign, (2) the annual Coast Guard Mutual Assistance Campaign, (3) disaster relief fundraisers authorized by the Office of Personnel Management, the DHS Secretary, and the Commandant (meaning all three have to authorized the special solicitation) and (4) command authorized unit MWR fundraising Reserve-related responsibilities, the reserve officer is in a position to influence the award of the contract because of their Coast Guard responsibilities, or another conflict of interest exists. Accordingly, this procurement-related limitation is ordinarily not a concern unless the reserve officer is either in a position to influence the contract or is on voluntary active duty with an anticipated duration of more than 130 days. employee’s agency, or having interests that may be substantially affected by the employee’s official duties; the definition also includes organizations the majority of whose members fall within any of the aforementioned categories. Reservists can pose some challenging issues because many of them are employed by, or have substantial professional and business relationships with, such prohibited sources. For this reason, the Office of Government Ethics (OGE) crafted an exception, 5 C.F.R. § 2635.204(e)(2), specifically to permit SGEs to accept various benefits resulting from outside business or employment activities, where it is clear that such benefits are not offered or enhanced because of the employee’s official position. these ways. Ordinarily, reservists who engage in teaching, speaking, and writing activities are asked to do so because of their independent expertise on the subject matter and not because of their official status or responsibilities. Additionally, there is a specific exception relating to teaching as part of a regularly established curriculum at an institution of higher learning. Due to the nature of most Reserve assignments, it is infrequently the case that a drilling reservist will be in a position where they will substantially affect the interests of a non-federal entity that may be inviting them to speak. If you have any questions about whether a particular teaching, speaking, or writing engagement creates a concern for you, please talk it over with your command and your servicing legal office. activities. Additionally, employees may not personally solicit funds or other support from a person known by the employee to be a “prohibited source.” With respect to SGEs, however, this restriction is limited to a narrower subset of the definition of prohibited source. SGEs are prohibited only from personally soliciting persons whose interests may be affected substantially by the performance or nonperformance of the SGE’s official duties. The fundraising rules are more nuanced than described here and any fundraising activity that you wish to pursue using your official status, official time, or onboard any federal facility ought to be cleared through your servicing legal office. Perceptions are important! The Pew Research Center routinely reports that in the opinion of the public we serve, military service is at the zenith of the 10 occupational groups that are believed to contribute most to our society. As a military member, your selfless devotion to duty represents the best that our country has to offer our fellow citizens. Those of us who wear the cloth of our country are, and should be, held to the highest ethical standards. There are fourteen basic obligations of public service, but of those fourteen the first basic obligations sums up the expectations that your Country, your Coast Guard, and your fellow citizens place upon you whether in or out of uniform: public service is a public trust. People know you serve in the Coast Guard and perceptions matter. Understanding the ethics laws and regulations won’t only help you to avoid getting into trouble, it will help all of us embody the DHS motto: with honor and integrity, we will safeguard the American people, our homeland, and our values.” � Issue 1 • 2021 � RESERVIST 51 The standards of ethical conduct Outside teaching, speaking and writing Fundraising
