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DAOD 7021-0, Conflict of Interest and Post-Employment

Table of Contents

  1. Introduction
  2. Definitions
  3. Policy Direction
  4. Consequences
  5. Authorities
  6. References

1. Introduction

Date of Issue: 2000-07-07

Date of Last Modification: 2015-05-06

Application: This DAOD is a directive that applies to employees of the Department of National Defence (DND employees) and an order that applies to officers and non-commissioned members of the Canadian Armed Forces (CAF members).

Supersession:

Approval Authority: Chief Review Services (CRS)

Enquiries: Director Defence Ethics Programme (DDEP)

2. Definitions

conflict of duties (tâches conflictuelles)

A conflict that arises, not because of a DND employee’s or CF member’s private interests, but as a result of one or more concurrent or competing official responsibilities. For example, responsibilities associated with their primary official duties compete with their responsibilities in a role outside of DND or the CF, such as an appointment to a board of directors, or other outside function, when that role is also part of his or her official duties. (Department of National Defence and Canadian Forces Code of Values and Ethics)

non-defence agency (organisme externe)

An organization or individual outside Defence, including another government department, another level of government, the government and armed forces of other countries, institutions, commercial businesses, or non-profit organizations. (Defence Terminology Bank record number 46396)

organizational conflict of interest (conflit d’intérêts organisationnel)

A situation in which the action or decision of a DND employee or CF member calls into question the integrity, objectivity, impartiality or non-partisanship of the DND or the CF. As a result, the situation could be perceived by a reasonable observer as placing the DND or the CF in a conflict of interest with the public interest. A real organizational conflict of interest is defined as existing at the present time in a situation; an apparent organizational conflict of interest could be perceived by a reasonable person to exist in the situation, whether or not it is the case; and a potential organizational conflict of interest could reasonably be foreseen to exist in the future. An apparent organizational conflict of interest is just as serious as a real or potential organizational conflict of interest. (Department of National Defence and Canadian Forces Code of Values and Ethics)

outside activity (activité extérieure)

Any employment or political or charitable activity, whether remunerated or not, that is conducted outside the official working hours of a DND employee or the authorized hours of duty or service of a CAF member. (Defence Terminology Bank record number 693780)

personal conflict of interest (conflit d’intérêts personnel)

A situation in which a DND employee or CF member has private interests that are not an integral part of their public role and that could improperly influence the performance of his or her official duties and responsibilities or in which the DND employee or CF member uses his or her office for personal gain. A real conflict of interest is defined as existing at the present time in a situation; an apparent conflict of interest could be perceived by a reasonable observer to exist in a situation, whether or not it is the case; and a potential conflict of interest could reasonably be foreseen to exist in the future. Conflicts of interest may arise in the following circumstances: outside activities (including political activities); acceptance of gifts, hospitality and other benefits; post-employment activities; and any other activity or decision incompatible with the official duties and responsibilities of a DND employee or a CF member. An apparent PCOI is just as serious as a real or potential PCOI. (Department of National Defence and Canadian Forces Code of Values and Ethics)

sponsorship (parrainage)

An arrangement between the DND or the CAF and a non-defence agency under which, in exchange for public acknowledgement or other non-monetary benefit, the non-defence agency provides financial resources or in-kind assistance to the DND or the CAF in support of a particular DND or CAF event or initiative. (Defence Terminology Bank record number 693781)

3. Policy Direction

Context

3.1 The Treasury Board (TB) Values and Ethics Code for the Public Sector has been established pursuant to subsection 5(1) of the Public Servants Disclosure Protection Act. This Code and the TB Policy on Conflict of Interest and Post-Employment replaced the TB Values and Ethics Code for the Public Service in 2012.

3.2 The TB Policy on Conflict of Interest and Post-Employment requires that deputy heads identify and manage operational risks of conflict of interest (COI) and delegate the responsibilities and authorities for the policy’s implementation.

Note – In this DAOD, a COI is an organizational COI, a personal COI or a conflict of duties, as applicable.

3.3 DND employees and CAF members are subject to applicable principles, rules and procedures set out in the DAOD 7021 series, as well as to applicable principles, rules and procedures set out in the Department of National Defence and Canadian Forces Code of Values and Ethics. DND employees are also subject to the TB Values and Ethics Code for the Public Sector and the Policy on Conflict of Interest and Post-Employment.

Policy Statement

3.4 The DND and the CAF are committed to the avoidance, prevention and resolution of COIs involving DND employees and CAF members as one of the principal means of maintaining public trust and confidence in the impartiality and integrity of the DND and the CAF.

Requirements

3.5 The DND and the CAF must:

  1. establish measures to prevent the possibility of COI arising from outside activities, post-employment, sponsorships, donations and the performance of duties or responsibilities;
  2. identify and manage operational risks of COI and COI risks associated with the pursuit of post-employment;
  3. implement a process to deal with COI and post-employment;
  4. issue directives and orders to make all DND employees and CAF members aware of the meaning and intent of all COI and post-employment provisions; and
  5. resolve any COI or risk arising from post-employment in the broader public interest.

3.6 The DDEP must notify the CRS of any non-compliance with this DAOD.

4. Consequences

Consequences of Non-Compliance

4.1 Non-compliance with this DAOD may have consequences for both the DND and the CAF as institutions, and for DND employees and CAF members, as individuals. Suspected non-compliance will be investigated. The nature and severity of the consequences resulting from actual non-compliance will be commensurate with the circumstances of the non-compliance.

Note – In respect of the compliance of DND employees, see the TB Framework for the Management of Compliance for additional information.

5. Authorities

Authority Table

5.1 The following table identifies the authorities associated with this DAOD:

The … has or have the authority to …

Deputy Minister and the Chief of the Defence Staff, as applicable,
  • rule on whether a DND or CAF organization is in a COI or there is potential for adverse public perception and if, on the basis of the broader public interest, there is a requirement to cease and desist, curtail or continue an activity;
  • rule on whether a DND employee or CAF member is in a COI or there is potential for adverse public perception, and direct that the DND employee or CAF member divest of an asset, or avoid or withdraw from an outside activity or situation, with or without limitations;
  • rule on any offer of employment for a DND employee, former DND employee, CAF member or former CAF member who is subject to post-employment restrictions by virtue of the classification or designation of their position or rank or former position or rank, as applicable;
  • approve the acceptance of a gift, hospitality or other benefit by a DND employee or CAF member, or by a DND or CAF organization;
  • rule on whether a DND employee or CAF member who solicits a gift, hospitality, other benefit or transfer of economic value from a non-defence agency creates a COI or potential for adverse public perception;
  • approve the acceptance by a DND employee or CAF member of a contract with a Government of Canada organization;
  • permit a DND employee or CAF member to solicit a gift, hospitality, other benefit or transfer of economic value from a non-defence agency when fundraising for a recognized charity;
  • approve the acceptance of a sponsorship or donation offered by a non-defence agency;
  • rule on any waiver or reduction of a post-employment limitation period or restriction in the case of an offer of employment for a DND employee, former DND employee, CAF member or former CAF member who is subject to post-employment restrictions;
  • designate any position for a DND employee occupying a position classified below EX minus 1, and for a CAF member of a rank below that of lieutenant-colonel or commander, as being subject to post-employment restrictions if such a position involves duties that raise post-employment concerns;
  • exclude any position from the application of post-employment restrictions if the duties of the position do not raise post-employment concerns; and
  • take appropriate action in respect of non-compliance with the DAOD 7021 series.

level one advisors, and the level two advisors outside the National Capital Region,
  • approve, in accordance with DAOD 7021-3, Acceptance of Gifts, Hospitality and Other Benefits, the acceptance of a gift, hospitality or other benefit by a DND employee or CAF member under their area of responsibility;
  • consult with the CRS to obtain a ruling on the acceptability of a solicitation or the acceptance of a gift, hospitality or other benefit; and
  • permit the use of DND or CAF resources in support of an activity for the benefit of a non-defence agency.

CRS
  • rule on whether a DND or CAF organization is in a COI or there is potential for adverse public perception and if, on the basis of the broader public interest, there is a requirement to cease and desist, curtail or continue an activity;
  • rule on whether a DND employee or CAF member is in a COI or there is potential for adverse public perception, and direct that the DND employee or CAF member divest of an asset, or avoid or withdraw from an outside activity or situation, with or without limitations;
  • rule on any offer of employment for a DND employee, former DND employee, CAF member or former CAF member who is subject to post-employment restrictions by virtue of the classification or designation of their position or rank or former position or rank, as applicable;
  • approve the acceptance of a gift, hospitality or other benefit by a DND employee or CAF member, or a DND or CAF organization;
  • rule on whether a DND employee or CAF member who solicits a gift, hospitality, other benefit or transfer of economic value from a non-defence agency creates a COI or potential for adverse public perception;
  • approve the acceptance by a DND employee or CAF member of a contract with a Government of Canada organization; and
  • take appropriate action in respect of non-compliance with the DAOD 7021 series.
directors and commanding officers
  • permit the use of DND or CAF resources in support of an activity for the benefit of a non-defence agency.

6. References

Acts, Regulations, Central Agency Policies an Policy DAOD

Other References

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