GOVERNMENT ETHICS
AND
DOING POSTAL BUSINESS
IN 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

(personal ethics)

(government ethics)

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

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
is a PCES employee working on a huge postal contract with a publiclytraded 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.

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
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
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
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
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
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 alltime greatest’ -- USPS Purchasing
Manager Craig Gracious.”
Problem?

ENDORSEMENTS
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
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:
is invited by the computer company to attend -- free -- a conference it’s sponsoring. May he accept?
Variation 2:
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
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
 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
21st Century employees
 Compliance with the ethics laws and regulations is your personal responsibility