Ethics Tenet 12
Case Studies 1 and 2 (adapted from The Ethics Edge Case Study 2 by Elizabeth Kellar, ICMA):
Public office is a public trust. A member shall not leverage his or her position for personal gain or benefit.
Guidelines
Gifts. Members shall not directly or indirectly solicit, accept or receive any gift if it could reasonably be perceived or inferred that the gift was intended to influence them in the performance of their official duties; or if the gift was intended to serve as a reward for any official action on their part.
The term “Gift” includes but is not limited to services, travel, meals, gift cards, tickets, or other entertainment or hospitality. Gifts of money or loans from persons other than the local government jurisdiction pursuant to normal employment practices are not acceptable.
Members should not accept any gift that could undermine public confidence. De minimus gifts may be accepted in circumstances that support the execution of the member’s official duties or serve a legitimate public purpose. In those cases, the member should determine a modest maximum dollar value based on guidance from the governing body or any applicable state or local law.
The guideline is not intended to apply to normal social practices, not associated with the member’s official duties, where gifts are exchanged among friends, associates and relatives.
Investments in Conflict with Official Duties. Members should refrain from any investment activity which would compromise the impartial and objective performance of their duties. Members should not invest or hold any investment, directly or indirectly, in any financial business, commercial, or other private transaction that creates a conflict of interest, in fact or appearance, with their official duties.
In the case of real estate, the use of confidential information and knowledge to further a member’s personal interest is not permitted. Purchases and sales which might be interpreted as speculation for quick profit should be avoided (see the guideline on “Confidential Information”). Because personal investments may appear to influence official actions and decisions, or create the appearance of impropriety, members should disclose or dispose of such investments prior to accepting a position in a local government. Should the conflict of interest arise during employment, the member should make full disclosure and/or recuse themselves prior to any official action by the governing body that may affect such investments.
This guideline is not intended to prohibit a member from having or acquiring an interest in or deriving a benefit from any investment when the interest or benefit is due to ownership by the member or the member’s family of a de minimus percentage of a corporation traded on a recognized stock exchange even though the corporation or its subsidiaries may do business with the local government.
Personal Relationships. In any instance where there is a conflict of interest, appearance of a conflict of interest, or personal financial gain of a member by virtue of a relationship with any individual, spouse/partner, group, agency, vendor or other entity, the member shall disclose the relationship to the organization. For example, if the member has a relative that works for a developer doing business with the local government, that fact should be disclosed.
Confidential Information. Members shall not disclose to others, or use to advance their personal interest, intellectual property, confidential information or information that is not yet public knowledge, that has been acquired by them in the course of their official duties.
Information that may be in the public domain or accessible by means of an open records request, is not confidential.
Private Employment. Members should not engage in, solicit, negotiate for, or promise to accept private employment nor should they render services for private interests or conduct a private business when such employment, service, or business creates a conflict with or impairs the proper discharge of their official duties.
Teaching, lecturing, writing, or consulting are typical activities that may not involve conflict of interest or impair the proper discharge of their official duties. Prior notification of the appointing authority is appropriate in all cases of outside employment.
Representation. Members should not represent any outside interest before any agency, whether public or private, except with the authorization of or at the direction of the appointing authority they serve.
Endorsements. Members should not endorse commercial products or services by agreeing to use their photograph, endorsement, or quotation in paid or other commercial advertisements, marketing materials, social media, or other documents, whether the member is compensated or not for the member’s support.
Members may agree to endorse the following, provided they do not receive any compensation: (1) books or other publications; (2) professional development or educational services provided by nonprofit membership organizations or recognized educational institutions; (3) products and/or services in which the local government has a direct economic interest.
Members’ observations, opinions, and analyses of commercial products used or tested by their local governments are appropriate and useful to the profession when included as part of professional articles and reports.
Case Study 1 – Investments in Conflict with Official Duties
The City Manager sees a growing need in the town he has managed for the last fifteen years for living facilities geared to the aging population in town. While there are a couple of similar but smaller facilities in his town; the manager while traveling, has seen a number of highly successful independent and assisted-living developments that allow seniors to maintain an active lifestyle in a congregate setting that also meet seniors needs. (Including medical and dining services readily available as well as home and lawn work provided.) At the same time, the manager is about five years from retirement and wants to remain in the community, so he is beginning to look down the road for retirement income and a second career. The manager contacts a partnership that has developed similar projects in other communities and suggests becoming a minority partner to develop a facility in the city he is managing. The manager is considering a number of factors before making a decision to move forward with this development venture:
1. The City Attorney has advised him there is no legal conflict as long as he fully discloses the venture to the city council.
2. After discussion the Mayor is highly encouraging of the idea because he agrees there is a strong need for this kind of development in the community.
3. While the location of the contemplated project is not currently zoned for this kind of use the Planning and Zoning board would likely readily approve a rezoning.
4. Because this idea is so unique to the community it would certainly be successful but would likely draw business from the other smaller assisted-living projects in the community.
5. The manager would be making a personal contribution to the overall quality of life in the city which would comply with all city building standards and laws.
The city does not own or support and assisted living facilities.
Case Study 2 –Gifts
The recently hired, first-time city manager, of a “university town,” and his wife are invited by the president of the university to join him in the president’s suite at the upcoming football game as a way to introduce the manager to the university. The university president indicates that they will also be joined by the mayor, the president of the chamber of commerce, the CEO of the regional power company and several other community leaders who are football fans and supporters of the university. Even though the city manager is not a huge football fan he feels that it is important that he establish a positive relationship with the president and community leaders. The city manager checks the city charter and state law and does not find any guidance as to any restrictions that would prohibit him from accepting the invitation. The university and the city have enjoyed a great relationship over the years and there are no pending projects between the city and the university. The manager is considering a number of factors regarding a decision to accept the invitation to attend the football game:
1.The manager wants to get to know the university president better (as well as the other community leaders) and make a good first impression.
2. The “first” city manager’s position salary does not afford the manager with much disposable income to afford tickets to the football game.
3. The manager is concerned that not accepting the invitation could damage the positive “town and gown” relationship that exists.
4. The mayor stops by to see the manager to let him know how much he is looking forward to introducing him to the college football weekend experience.
5. The manager’s wife really wants to attend a big time college football game and sit in the president’s skybox.
