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Values and Ethics Code for the Public Service

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Table of Contents

Summary

Glossary

Questions-answers

Avenues of resolution

Thematic considerations: Solicitation


Thematic considerations: Post-Employment


Chapter 2 and Chapter 3: Jurisprudence


Annex 1: Delegation of authority under the Values and Ethics Code for the Public Service


Annex 2: EX, EX minus 1, EX minus 2 and equivalent positions



Summary of the Values and Ethics Code for the Public Service

The Values and Ethics Code for the Public Service (the Code) is intended to:

The Code consists of four Chapters:

  1. Statement of Public Service Values and Ethics;
  2. Conflict of interest measures;
  3. Post-Employment measures;
  4. Avenues of resolution.

Chapter 1: recognizes the essential role of the Public Service in the Canadian democratic society. It identifies and explains the four families of Public Service values: democratic, professional, ethical and people values.

Chapter 2: discusses measures concerning conflict of interest issues. In most cases, to comply with these measures, public servants will need only to submit a confidential report to the designated authority within their organization.

Chapter 3: sets out rules of conduct concerning post-employment. Before leaving employment with the Public Service, the Code requires public servants to disclose their future employment intentions and discuss any potential conflict of interest with their Deputy Head.

Chapter 4: for the first time, suggests written avenues of resolution for public servants who feel a breach of the Code has occurred within their organization. Ongoing dialogue with one's manager and/or the designated Senior Official is the recommended approach. However, if the issue cannot be resolved through this route, public servants may avail themselves of the measures described in the Policy on the Internal Disclosure of Information Concerning Wrongdoing in the Workplace.

Glossary

Confidential report

What is it?: A written declaration of assets, outside activities or firm employment offers that might put a public servant in an apparent, potential or real conflict of interest situation.

Public servants are responsible for assessing their own personal circumstances to determine whether there is a risk of real, potential or apparent conflict of interest. If the answer is yes, the public servant is required to prepare a confidential report containing details on the items in question. They may fill out the form provided by the Treasury Board Secretariat or present any other form of detailed report as long as it is in writing.

When in doubt, fill out a confidential report:

This form can be accessed through the Treasury Board of Canada Secretariat Web site at the following address: http://www.tbs-sct.gc.ca/tou/dwnld/dis-eng.pdf

Deputy Head

What is a Deputy Head?: The Deputy Head is either the Deputy Minister of a line department or Head of an Agency. He or she is responsible for satisfying the requirements of Parliament, departments and central agencies as expressed in statutes, regulations and other directives, in view of financial visibility, control and accountability through the establishment, maintenance and operation of system of financial administration.

The Deputy Head has a responsibility to exemplify the values of the Public Service and to infuse them into all aspects of the organization's work. This includes encouraging and maintaining an ongoing dialogue on Public Service values and ethics within the organization. In short, the Deputy Head has a duty to create a climate that fosters debate and discussion, without fear of reprisal, on issues of concern related to Public Service values and ethics.

In terms of concrete action, the Deputy Head must establish structures to ensure implementation of the Code and to help public servants understand and respect the provisions and spirit of the Code. Since public service organizations often differ in set-up and culture, Deputy Heads may create the structures they consider appropriate for their respective organizations. However, all Deputy Heads have one common obligation: they must designate a senior official to help public servants discuss issues arising from the application of the Code.

Internal disclosure of information concerning wrongdoing in the workplace

This policy, which has been in effect since November 30, 2001, is designed to enable public servants to disclose information about alleged wrongdoing in the workplace, in an atmosphere that ensures fairness and protection from reprisal. Each department and agency has a Senior Officer who is responsible for this policy.

Management Accountability Framework (TBS)

In its simplest form, the Management Accountability Framework contains a set of 10 statements that summarize the expectations of the Treasury Board of Canada Secretariat (TBS) for modern public service management (i.e. governance and strategic direction, Public Service values, policies and programs, human resources, citizen-focused service, risk management, accountability, results and performance, and learning, innovation and change management). The Framework aims to give Public Service managers, especially Deputy Heads, a detailed list of management expectations within a global framework for high organizational performance.

Office of Public Service Values and Ethics

The Public Service Human Resources Management Agency of Canada (formerly TBS), through the Office of Public Service Values and Ethics, provides advice on the interpretation and promotion of the Code. The Office provides departments and agencies educational material such as questions and answers, videos and an interpretation guide. As well, the Office organizes series of activities to raise awareness and provide information.

The Public Service Human Resources Management Agency of Canada (formerly TBS) monitors the implementation of the Code in departments and agencies. This means that it routinely assesses departmental performance in terms of the application of the Code. Before such an assessment is undertaken, departments and agencies will be notified of the terms and conditions.

Public Service Integrity Officer

Who is the Public Service Integrity Officer?: Dr. Edward Keyserlingk became on November 30, 2001, the first Public Service Integrity Officer. His role is to act as a recourse outside of departments and agencies.

In terms of the Values and Ethics Code for the Public Service, the role of the Public Service Integrity Officer (PSIO) is to receive, record and review disclosures of wrongdoing in the workplace, including breaches of the Code, and to make recommendations where warranted to Deputy Heads for resolution. Moreover, the PSIO may also report on cases related to breaches of the Code in the annual report to the President of the Privy Council, which is tabled in Parliament.

Senior Officer responsible for disclosures of allegations of wrongdoing

What is the Senior Officer?: In accordance to the Policy on Internal Disclosure of Information Concerning Wrongdoing in the Workplace, the Senior Officer is responsible for, among other things, receiving, recording and reviewing disclosures of information concerning wrongdoing and establishing if there are sufficient grounds for further action.

Since breaches of the Code are included in the definition of wrongdoing, pursuant to the Policy on Internal Disclosure of Information Concerning Wrongdoing in the Workplace, there is now a new role under the Code for the Senior Officer responsible for disclosures of alleged wrongdoings. In accordance with the responsibilities set out in the Policy on Internal Disclosure of Information Concerning Wrongdoing in the Workplace, the Senior Officer can receive allegations of wrongdoing, primarily breaches related to Chapter 1, Statement of Public Service Values and Ethics.

Senior official

What is the senior official?: The senior official is designated by the Deputy Head to inform, support and advise public servants on their professional conduct in connection with the Code. His or her role is primarily that of facilitator to public servants. He or she must listen to the ethical dilemmas of public servants and offer avenues of resolution. In addition, he or she has a responsibility to provide public servants with awareness, training and educational activities and materials.

The choice of senior official is at the discretion of the Deputy Head. The Treasury Board does not favour officials from any particular occupational group over any other. However, the individual must be at the executive (EX) or equivalent level, taking into account the nature of the organization. If, for example, in a small organization, a person at the AS-07 level is a member of the senior management team, even though this person is technically not an (EX), he or she can be designated by the Deputy Head. The essential criteria is that he or she has easy access to the Deputy Head.



Questions and answers

Introduction

These questions and answers are designed to help you understand the Values and Ethics Code for the Public Service. It is not an exhaustive list. When providing advice in this field, it is important to use judgement and take the organizational culture into account.

1. Why does the Values and Ethics Code for the Public Service apply exclusively to public servants working in departments, agencies and other public institutions listed in Part I of Schedule I of the Public Service Staff Relations Act? Shouldn't the Code apply to everyone employed in the Public Service?

The Treasury Board and the Public Service Human Resources Management Agency of Canada (formerly TBS) do not act as the employer for all government institutions, only for those listed in Part I of Schedule I of the Public Service Staff Relations Act, which is why most of the policies issued by the Treasury Board and administered by the Public Service Human Resources Management Agency of Canada (formerly TBS) can only apply to them. However, other government organizations are encouraged to follow the spirit of the Code and adopt similar provisions.

2. Are public servants required to sign a document certifying that they have read, understood and accepted the requirements of the Values and Ethics Code for the Public Service?

Section 11(2)(i) of the Financial Administration Act gives the Treasury Board, as the employer, the authority to define the terms and conditions of employment of public servants, which it does through the Code and the Policy on the Prevention and Resolution of Harassment in the Workplace. This authority was delegated to the Public Service Human Resources Management Agency of Canada (formerly TBS) by an Order-in-Council announced on December 12, 2003. The Code itself constitutes a reasonable condition of employment. Whether or not public servants sign a document of attestation, they are still subject to the conditions of employment set by the employer. The elimination of the requirement to sign a certification document is an administrative convenience that does not in any way change the requirement to respect the new condition of employment, in this case the Values and Ethics Code for the Public Service. The employer is responsible for informing public servants of this condition of employment, and the letter of offer is one of the chosen ways of meeting this obligation, which is why the Public servant Certification Document is no longer required.

3. What must public servants do to comply with the Code?

People should act in accordance with values stated in Chapter 1. For example, they should spend public funds judiciously and treat colleagues and citizens with respect.

Public servants can comply with the Code by avoiding risks of conflict, divesting themselves of anything that could represent a risk of conflict, and preparing a confidential report.

Avoiding the risk of conflict: by avoiding activities or situations that may place them in a real, potential or apparent conflict of interest situation in terms of their official duties and responsibilities or by divesting themselves of such activities.

Submission of a confidential report: by submitting to the designated official a written statement listing the assets they own, the gifts, hospitality and other benefits they receive, and their participation in employment or any other activity that is not part of their official functions and could lead to a conflict of interest.

Divestment: when a public servant's continued ownership of property could constitute a real or potential conflict of interest in terms of that public servant's official duties and responsibilities, he or she may decide to sell the asset to an arm's length buyer or place that asset in trust.

And, naturally, this list is not exhaustive.

4. What if a public servant does not comply with the Code?

Compliance with the provisions of the Code is a condition of employment.

Any public servant who does not comply with the measures set out in the Code is subject to disciplinary measures ranging from an oral warning up to and including discharge from the Public Service.

5. Who monitors whether public servants comply with the Code?

The responsibilities are clearly defined. Each public servant is required to comply with the provisions of the Code. Deputy Heads have specific responsibilities with regards to the implementation and application of the Code. The Public Service Human Resources Management Agency of Canada (formerly TBS) routinely assesses the performance of departments with respect to their application of the Code.

6. When a public servant and the designated official disagree on the administration of the Code, is there a specific mechanism or procedure for redress and what type of disciplinary measure is applicable?

No, the Public Service Human Resources Management Agency of Canada (formerly TBS) has not integrated any redress mechanism into the Code.

The standard grievance settlement procedure applies. The right to file a grievance is provided by section 91 of the Public Service Staff Relations Act. In the event of disagreement, employees must first comply and then file their grievance. Other public servants, including students, casual and part-time workers can submit a complaint in writing to their manager.

If a public servant refuses to comply with the requirements of the Code, the principle of progressive disciplinary action must be followed.

The departmental staff relations advisor must be consulted in such cases.

7. Who is subject to the post-employment compliance measures?

The post-employment compliance measures apply to public servants in positions at or above the Executive level (EX 1 and above) and their equivalent as well as at EX minus 1 and 2 and equivalent positions (e.g. PM-06, IS-05, AS-07).

However, upon recommendation by the Deputy Head, a department may designate other positions as being subject to the post-employment compliance measures.

The Deputy Head must consult the Public Service Human Resources Management Agency of Canada (formerly TBS) on such designations.

8. Why do the post-employment compliance measures apply to public servants at lower levels, such as EX minus 1 or 2?

The Code takes into account the fact that more and more responsibility is being delegated to public servants who are not in the EX category or their equivalent. Several EX minus 1 or 2 public servants have access to documents and information that could place them in the same kind of conflict of interest situation as executives. This calls for appropriate preventive measures.

9. What measures can a department put in place to check whether a former public servant who is subject to the post-employment compliance measure (EX, EX minus 1, EX minus 2 levels and their equivalents) is respecting the measures in question?

In the first place, departments should ensure that before leaving the Public Service, public servants are reminded orally or in writing of the post-employment compliance measures, and that there is some assurance that they clearly understand their intent and limitations.

Technically, once a public servant has left the Public Service, there are no simple measures that a department can use to check whether that public servant is respecting the post-employment compliance measures to which he or she is subject. The onus for compliance is on the individual in question. Once an individual has left office, he or she is no longer a public servant, hence managers no longer have any authority over him or her.

10. Has the Public Service Human Resources Management Agency of Canada (formerly TBS) published any criteria for departments interested in introducing additional measures? What measures would be acceptable?

No, the Public Service Human Resources Management Agency of Canada (formerly TBS) has not published any criteria or examples of acceptable or other measures. Any department wishing to introduce additional measures should take into account the situations that might have significant conflict of interest repercussions.

Departments should ensure that the additional measures are fair and equitable. Third parties should not see the measures as being excessive. Common sense and respect for the rights and freedoms of public servants should guide the decisions taken in this regard.

By way of example, the National Museums of Canada requires that their employees report any privately-held works of art or artefacts to avoid any risk of conflict of interest.

Departments should consult the Public Service Human Resources Management Agency of Canada (formerly TBS) before introducing new compliance measures.

11. Ca public servants who are not subject to the limitation period set out in Chapter 3 of the Code and who leave the government make representations on behalf of a business to their former department?

Chapter 3 of the Code indicates that after leaving office, public servants should not take improper advantage of their former positions.

The definition of improper advantage depends on each individual case and should stand the test of what a reasonable person would consider as proper. Such situations should be reviewed on a case by case basis.

12. Does the Code apply to public servants who are on leave without pay?

Yes. The Code applies to public servants who are on leave without pay. All of the rules and regulations continue to apply. They retain their status as public servants until they leave office.

13. Are there guidelines that should be brought to the attention of public servants who are considering undertaking outside activities?

Activities that do not fall under a public servant's official duties should not detract from their performance of their official duties.

Public servants may not use government property. They may not knowingly benefit from knowledge or use information obtained in the course of their official duties that are not available to the public.

During their off-time, they may only engage in activities that are not related to their official functions.

They must not receive any economic benefit and the business employing them must not benefit from their work for the federal government.

14. A public servant would like to use a meeting room at lunchtime to sell crafts. The individual has also indicated that all transactions will be in cash only and that the invitation to this event would be sent by e-mail. Is there a conflict of interest?

Yes, it has been explicitly pointed out in the Code that public servants are not allowed to use government facilities for anything other than officially approved activities.

Moreover, in general, the use of e-mail should be restricted to office business, not for advertising personal activities.

The fact that the transactions will be cash only raises some issues. If this means that no GST or other taxes will be charged, the department cannot approve the activity since it cannot approve anything that does not comply with current legislation (taxes).

15. Can a public servant be the supervisor of his or her spouse or a member of his or her family?

Yes, there is nothing in the Public Service Employment Act to prohibit this. The merit principle applies.

Some departments have guidelines on working relations between relatives in order to manage such situations.

You will find below some more considerations on this issue.

Avenues of Resolution

NOTE: This table provides an example of the avenues that should be taken to resolve an ethical dilemma, seek an interpretation, disclose wrongdoings in the workplace related to the Code or challenge a decision related to compliance measures for conflicts of interest or post-employment.

A public servant who has an ethical dilemma or who is seeking an interpretation of the Code must: A public servant who wants to disclose wrongdoing in the workplace must: A public servant who disagrees with the compliance measure(s) set out by the Deputy Head or his designate, must:

1. Talk to his or her manager to find a solution or for the desired clarification

  • Resolution
  • Impasse, see 2

2. Talk to the Senior Official, designated by the Deputy Head under the Values and Ethics Code of the Public Service, to find a solution or for the desired clarification

  • Resolution
  • Impasse, see 3.

3. The Deputy Head considers the matter and renders a decision or clarifies the interpretation

  • Resolution
  • Impasse, see 4.

4. Grievance process for employees. Other public servants can submit a complaint in writing to their manager.

1. Discuss the situation with his or her manager to clarify or resolve the situation.

  • Resolution
  • Impasse, see 2.

2. Talk to the departmental Senior Officer designated under the Policy on Internal Disclosure of Information Concerning Wrongdoing in the Workplace. This officer can receive the disclosure, investigate, and, if applicable, submit a report to the Deputy Head.

  • Resolution
  • Impasse, see 3.

3. Submit the situation to the Public Service Integrity Officer, who-does not accept the case-accepts the case, see 4.

4. The Public Service Integrity Officer receives the disclosure, investigates, if warranted, and submits his report to the Deputy Head.

1. Discuss his or her file with the Deputy Head or the person designated by the latter to act on his behalf in matters of conflicts of interest or post-employment.

  • Resolution
  • Impasse, see 2.

2. Grievance process for employees. Other public servants can submit a complaint in writing to their manager.

CHAPTER 1: PROFESSIONAL AND PEOPLE VALUES *

This section of the guide deals with questions related to the Values and Ethics Code for the Public Service, Chapter 1 Statement of Public Service Values and Ethics by presenting situation scenarios that public servants could potentially encounter.

Case 1: Follow the rules or exercise discretion when serving the public

Isabelle manages a single window unit that provides service directly to the public, including a range of social services. The workload of public servants in the unit is already overloaded because people turn to them for help with a number of issues that are not part of the unit's mandate. Isabelle has tried to reduce the time devoted to such questions, but she admits her staff is firmly convinced that this additional help is important to some needy clients.

Recently, Daniel, one of her officers, was very concerned about a particular case and exerted great pressure for a generous interpretation of the rules. In this specific case, the client would lose benefits if the eligibility criteria were strictly applied, and the facts of the case were not very clear. The hardship that the loss of benefits would cause to an otherwise deserving person would be severe.

Isabelle must decide whether she should insist that Daniel respect the rules or allow for compassion in their interpretation. It is clear that her decision in this case will have an impact on the way other officers treat similar cases in the future.

Factors to consider

References

Values and Ethics Code for the Public Service.

Suggested solutions:

1- First point of view: fair rules

Programs should be administered in an objective manner for the good of the whole community, rather than in a subjective manner for the good of an individual. By coming to the aid of a person who, from a personal point of view, is in need, public servants run the risk of harming other people who are equally in need.

Public servants should also be protected from undue pressure exerted by some clients. Public servants deserve to have rules from which they can draw support. If the rules are clear, clients know what to expect. When rules are not clear, public servants do not serve their clients well. Rules exist to protect both the clients and public servants.

2- Second point of view: to serve Canadians with compassion.

Daniel is exerting strong pressure for the rules to be interpreted generously. His position is based on the following three ideas.

3- Third point of view: involving public servants in solving the problem.

Public servants should be ready to take a step back and ask themselves if the rules are being applied appropriately. Managers must involve their staff in the discussion of the procedure to follow in making this evaluation. The Values and Ethics Code for the Public Service provides the guidance needed for a balanced interpretation of the rules and values of the Public Service. A continuing dialogue between public servants and management about questions of ethics makes it possible to anticipate and resolve situations of conflicting values.

Case 2: balancing compassion for public servants and operational constraints.

Bianca manages a small work unit. One public servant, Nathalie, often arrives late and disappears for long periods. Nathalie is a single parent. She feels that she is doing her job, and occasionally gets permission to take work home to make up required hours of work.

At the same time, another public servant, Sophie is risking her physical and mental health by taking on additional work. Bianca fears that as a result, Sophie may soon need extended sick leave.

Bianca must find a way of accommodating the personal needs of her staff as well as the professional needs of her organization.

Factors to consider

References:

Values and Ethics Code for the Public Service.

The conflict in this case is between people values and professional values. Nathalie's values of family and children must be reconciled with the professional values of service and work standards.



Chapter 2: Conflict of interest measures

This section of the guide deals with questions related to the Values and Ethics Code for the Public Service, Chapter 2 Conflict of Interest measures by presenting situation scenarios that public servants could potentially encounter.

Case No. 1: Leave of absence

Denise was director of the Pesticides Office, an EX minus 1 position. The office is responsible for approving the marketing of new pesticides, after ensuring their safety and effectiveness. The office also develops federal government policies in this field.

A little more than a year ago, she took a two-year leave without pay. Under the agreement she signed, if Denise decided to return to the department, she could apply for any available position and her application would be given priority. However, she would not be automatically entitled to her previous position, which is now occupied on a permanent basis by someone else.

Since taking leave without pay, Denise has been teaching environmental sciences at a recognized university and working as a consultant. She has no intention of seeking a position in government.

A private sector company has hired her to prepare a request for approval of a new pesticide. An environmental group has hired her to prepare a scientific document intended to convince the government to adopt regulations favouring biological pesticides.

Would Denise be in a conflict of interest situation under the Values and Ethics Code for the Public Service?

Factors to consider

References

Values and Ethics Code for the Public Service.

Suggested solutions

Denise is in fact subject to the provisions of the Values and Ethics Code for the Public Service. A public servant on leave without pay remains a public servant of the Public Service until the employment is terminated. If Denise decided to resign from her position in the Public Service, the Post-Employment section of the Code would continue to apply to her since Denise was an EX minus 1 public servant. She would have to wait one full year after her resignation to work for a private sector organization that has dealings with her previous office unless the Deputy Head granted her a reduction or exemption from this one year limitation period.

There is sufficient appearance of conflict of interest in this scenario to justify the submission of a confidential report, that would be carefully reviewed based on the factors noted above. Failure to report these outside activities and/or failure to withdraw from those activities could lead to disciplinary measures such as verbal or written reprimands, suspension without pay or even termination.

Case No. 2: publication of a manuscript

In his free time, a public servant writes a manuscript on public policy. The public servant's duties within the Public Service do not include writing for publication. The document proposes different steps to follow and various ways in which an individual, an interest group or a private company could influence legislation or government policy.

The public servant has now been approached by a company interested in publishing the manuscript. Not knowing whether he should accept the company's offer, the public servant submits a confidential report to the designated authority asking for approval to publish his manuscript.

Factors to consider:

References

Values and Ethics Code for the Public Service

Suggested solution(s)

The resolution of this scenario rests in large part on the answers to the questions raised above. The document would be more likely to receive approval for publication if it is more general in nature, if it does not contradict departmental positions, does not contain protected information, does contain the required disclaimer and was written during the public servant's free time, without use of office resources.

Chapter 2: Gifts, hospitality and other benefits

Case No.1: free stuff

In what circumstances is it permissible to accept a lunch or dinner, or to accept hockey or theatre tickets from an organization that has an interest in doing business with the government? Suppose the occasion is an opportunity to establish better communication and promote understanding between government and the organization? What if the occasion is a seminar that provides useful information to the government? What if it is a purely social event to which your spouse has also been invited?

Factors to consider

References

What does this mean?

Each case must be evaluated individually. Factors to be taken into consideration include:

Suggested solution(s):

Note: a federal government manager may find that he or she is required to take part in events or meals organized by a local chamber of commerce as part of government efforts to increase the manager's community involvement and to develop knowledge and awareness of the community. However, the same manager could be placed in a potential conflict of interest if a single company organized the event or meal. When in doubt, say No

Case No. 2: token of appreciation

You receive a thank you gift from a client, consultant, business or hotel that you have recently done business with. The gift might be a box of chocolates, flowers, a bottle of wine or tickets to the theatre. What should you do?

Factors to consider

References

Suggested solution(s)

NOTE: You should discuss this matter with your supervisor or the designated conflict of interest administrator if you have the slightest doubt about the propriety of accepting a gift.

Case No. 3: conference gifts and prizes>

You are asked to take part in a conference as a government representative. Without your knowledge, the names of participants are entered in a draw. You win. The prize is a suitcase valued at $150. What should you do? What if the prize was computer software worth $750? What should you do? Would it make a difference if you had bought a ticket in a conference draw?

OR

Your department asks you to make a presentation at a conference. The presentation is made to a group of private companies and deals with the government's new partnership initiatives. The government is seeking financial support for the initiative from this industry. As a gesture of thanks, the conference organizers present you with a valuable book. What should you do? What if the gift was a painting by a famous Canadian artist, with a value of $1,000?

Factors to consider

References

Suggested solution(s)

In these situations, you have to exercise judgment. In the case of the conference presentation, one could imagine, in advance, that you would receive some token of appreciation. The department's position on this question could have been raised with your immediate supervisor. At the time the invitation was accepted, it could have been established that departmental and personal values and policies would not allow acceptance of any gift or token of appreciation for such an event. Depending on the circumstance, it probably would be difficult to refuse the gift at the conference. However, it could be returned to the organizers with a note of thanks that explained your position.

If you cannot return the gift, then you should fill out a Confidential Report to inform management of the situation. Only the Deputy Head can make a decision on the acceptance of gifts that are worth more that minimal value. Following a decision in the affirmative, the Deputy Head may decide to have the gift placed in the waiting room or similar location, where all could enjoy it. A book could be offered to the departmental library. Most departments have a display case for gifts presented to their public servants. The gift could also be sent to a departmental organization or to an approved charitable organization such as the United Way.

In the situation where you win an attendance prize, the following options can be considered. Depending on the context, it might be possible to politely and diplomatically decline the prize and ask that another name be drawn. Since an attendance prize is not directly related to your government position, there is less risk that this situation would be seen as a conflict of interest.

If you buy a ticket with your own money, the appearance of a conflict of interest may be reduced since the win depended solely on your purchase and is not a direct result of your official duties. However, it could be alleged that the only reason you were able to buy a ticket was that the federal government had paid for you to attend the conference, hence a potential conflict of interest situation.

Here again, if you are in doubt, refuse the prize, and if you do accept, make an immediate report to your supervisor or to the designated official when you return to your office.

Chapter 2: Avoidance of preferential treatment

Case No.1: helping a friend

You are a public servant in the finance section of a department. You work in the revenue section and your job is to reconcile accounts receivable. As part of your work, you have access to the department's main administrative system where information on all departmental files is stored. You are not personally in a position to influence any current file.

You receive a call from a friend, who is a human resources officer for a local small business in the high technology sector. He tells you that his company is trying to sponsor the immigration of a foreign worker for a particular job, but that have not had any news about the case for some time. He adds that his boss is putting pressure on him to find out about the application and he asks you if it is possible for you to check the file in the system and keep him informed about any developments. You know that he won't tell anyone else and there is little chance you will be caught. Moreover, you have no influence at your level, so what harm is there? What would you do?

Factors to consider

References

Values and Ethics Code for the Public Service

Chapter 2: preferential treatment
Public servants should not offer any assistance to entities and persons that have dealings with the government, where this assistance is not part of their official duties, without obtaining prior authorization from their designated superior and complying with the conditions for that authorization.

Access to Information Act , section 19.

19. (1) Subject to subsection (2), the head of a government institution shall refuse to disclose any record requested under this Act that contains personal information as defined in section 3 of the Privacy Act.

(2) The head of a government institution may disclose any record requested under this Act that contains personal information if (a) the individual to whom it relates consents to the disclosure; (b) the information is publicly available; or (c) the disclosure is in accordance with section 8 of the Privacy Act.

Suggested solution(s)

Case No. 2: real or apparent conflict of interest

You are a finance officer in a medium-sized government department. Your job involves examining applications for funding of projects received by mail, to verify that they are complete, that they meet program criteria, and passing them on to the next level for review. Applications are distributed to officers at random by the mailroom. By chance, you receive an application from a personal friend. The proposed project seems very profitable for the program and its objectives. What should you do?

Factors to consider

References

Values and Ethics Code for the Public Service

Suggested solution(s)

Case No. 3: privileged information

You are the manager of an office responsible for enforcing regulations that prohibit social assistance fraud by recipients. Your office has a team of investigators who deal with these cases and, when necessary, bring criminal charges against recipients accused of fraud.

Because of a backlog of information in your tracking system, you have hired a number of public servants for a determined period. One of your investigators informs you that one of the term public servants has given him the address of a recipient who is under investigation. When you ask how and why she revealed this information, the investigator tells you the woman was romantically involved with the recipient and discovered he was married. Because she was angry, the woman looked through the tracking system to see whether a file had been opened on the man, intending to cause him some harm. She knew his current address and gave it to the investigator. As manager, what should you do?

Factors to consider

References

Values and Ethics Code for the Public Service

Suggested solution(s)

Case No 4: outside activities

You are a project officer in the regional office of a department responsible for community development programs. Your work consists in helping volunteer organizations to prepare grant submissions for projects that meet the objectives of your program. You are the only program officer for the region. Moreover, your office is located in a medium-sized city where the business community is closely inter-connected.

Your manager has decided to offer your clients training in finance and project management, and has decided to issue a request for proposals (RFP) to the local financial community for consultants to give the training. Your name is listed on the RFP as the contact for more information. Your cousin, who is an accountant, asks you for help in preparing his bid. Your cousin is also the person who helps you with any construction projects around your house. He is an honest worker, who is dependable and who respects his commitments. As far as you know, no one in your office is aware of this, or of his relationship to you.

Two other competitors from the community submit bids for the same contract. One of them is the brother-in-law of the local Member of Parliament. The other is a person whom you know was previously awarded a contract that had to be cancelled because of a lack of staff at the time of the project.

The awarding of this contract is a real minefield for you, your family and your manager. Public perception of accountability, fairness and transparency is a real issue. What should you do?

Factors to consider

References

Suggested solution(s)

Chapter 2: divestment of assets

Case No. 1: insider information

You work in the finance section at a remote regional office of a science-oriented department. Your department, along with other federal departments, is taking part in the environmental assessment of a local site that could be developed by a company for its natural resources. You have heard that the company recently bought the site and there is a good possibility for high profits.

You are interested in buying shares in the company.

Since you are not involved in the environmental assessment, would buying the company's shares cause a problem? Suppose you had access to information about the results of the environmental assessment soon to be released, allowing development of the site. Would that make a difference? What should you do?

Factors to consider

References

Values and Ethics Code for the Public Service.

Appendix A: assets and liabilities subject to a confidential report

The types of assets and liabilities that must be reported in a Confidential report include, among others: (a) publicly traded securities of corporations and foreign governments, self-administered registered retirement savings plans and self-administered registered education savings plans that are composed of these securities, where these securities are held directly and not through units in mutual funds; (b) any other assets or liabilities that could give rise to a real, apparent or potential conflict of interest due to the particular nature of the public servant's duties; and

Appendix A: Divestment of assets

Public servants must divest assets where their Deputy Head determines that such assets constitute a real, apparent or potential conflict of interest in relation to their duties and responsibilities. Divestment of assets is usually achieved by selling them through an arms-length transaction, or by making them subject to a blind trust arrangement.

Suggested solution(s)

In the first place, even if you are not directly involved in the environmental assessment, you are located in a remote place, which increases the appearance of conflict of interest. The fact of doing business with a small office in a small community could lead a member of the public to question the integrity of government public servants. You should avoid buying shares in this company;

If you have access to information that is not available to the public, you are definitely in a conflict of interest situation and, again, you should avoid buying these shares.

Case No. 2: Opportunity knocks

You are a human resources adviser in a federal department. You heard on the news last night that a computer company that deals with your department's systems group is doing cutting-edge work in the communications field. The company has great potential for growth and you buy 100 shares of its stock, hoping that the new technology will be a success.

What are the implications of your purchase? What should you do?

Factors to consider

References

Values and Ethics Code for the Public Service.

Appendix A: Assets and liabilities subject to a Confidential Report

The types of assets and liabilities that must be reported in a Confidential report include, among others: (a) publicly traded securities of corporations and foreign governments, self-administered registered retirement savings plans and self-administered registered education savings plans that are composed of these securities, where these securities are held directly and not through units in mutual funds; (b) any other assets or liabilities that could give rise to a real, apparent or potential conflict of interest due to the particular nature of the public servant's duties; and

Appendix A: Divestment of assets

Public servants must divest assets where their Deputy Head determines that such assets constitute a real, apparent or potential conflict of interest in relation to their duties and responsibilities. Divestment of assets is usually achieved by selling them through an arms-length transaction, or by making them subject to a blind trust arrangement.

Suggested solution(s)

Since you learned the information about the company on a news broadcast, it is clear that you did not profit from information that is not generally available to the public.

Although the company may deal with different sectors of your department, you have no access in the course of your duties to information concerning the company.

The fact of owning shares in these circumstances does not represent, in itself, a conflict of interest.

NOTE: If you were to accept a position in the computer services branch of your department, your new employment could lead to circumstances that might create potential conflict of interest situation.

Case No. 3 : Exempt vs. non-exempt assets

You were recently hired by a federal government department and have been asked to provide a written statement of your assets and interests, and of any outside activities. You own some Canada Savings Bonds and you have a registered retirement savings plan. What should you do?

Factors to take into account

References

Values and Ethics Code for the Public Service.

Appendix A: Assets not requiring a confidential report

Such assets include, among others: (f) Canada Savings Bonds and other investments in securities of fixed value issued or guaranteed by any level of government in Canada or agencies of those governments; (g) Registered retirement savings plans and registered education savings plans that are not self-administered;

Appendix A: Assets and liabilities subject to a confidential report

"The assets and liabilities that must be reported in a confidential report include: (a) publicly traded securities of corporations and foreign governments, self-administered registered retirement savings plans and self-administered registered education savings plans that are composed of these securities, where these securities are held directly and not through units in mutual funds."

Suggested solution(s)

If your registered retirement savings plan is not self-administered, (for example, it is managed by a financial institution and you do not control the assets yourself), you are not required to declare those assets because they are exempt under Appendix A of the Code.

However, if your registered retirement savings plan is self-administered and you feel these assets could represent a conflict of interest with respect to your official duties, you must submit a report, including a list of the assets in your plan.



Chapter 3: Post-Employment Measures

This section of the guide deals with questions related to the Values and Ethics Code for the Public Service, Chapter 3 "Post-Employment measures" by presenting situation scenarios that public servants could potentially encounter.

Case No. 1: A change of career

In six months, Dr. Smith, Associate Assistant Deputy Minister (ADM), Research Branch, will be leaving the department to join the University of Waterloo as Chair of the School of Applied Research in the Science faculty.

As part of her new duties, Dr. Smith will direct the school's activities, establishing links to government and non-government groups and developing proposals to funding organizations that make grants to support work in the fields of applied research.

The position involves establishing contacts with private and public sector organizations to carry out research and setting up an advisory committee for the school. The position also involves directing multi-disciplinary research teams and publishing the results of studies. The school could conduct research and scientific studies in applied sciences for Dr. Smith's current department.

Dr. Smith's new role seems to have advantages for the department, in particular in generating research results and evidence-based decision making for policy development.

Factors to consider

References

Values and Ethics Code for the Public Service

Chapter 3: The following measures apply specifically to public servants in positions classified at the senior executive level (EX) or its equivalent level, as well as to levels EX minus 1 and EX minus 2 and their equivalent levels (for example, PM-06, IS-05, AS-07).

Chapter 3: Limitation period Within a period of one year after leaving office, public servants are forbidden: b) to make representations for, or on behalf of, persons to any department or organization with which they personally, or through their subordinates, had significant official dealings during the period of one year immediately prior to termination of their service.

Suggested solution(s)

Thematic considerations: Solicitation

The Values and Ethics Code for the Public Service, which replaces the Conflict of Interest and Post-Employment Code for the Public Service, clarifies the employer's position concerning solicitation. Some relevant questions have been presented in the previous case studies. You will find below an overview of what is, or is not, allowed.

It states that :

At no time should public servants solicit gifts, hospitality, other benefits or transfers of economic value from a person, group or organization in the private sector who has dealings with the government.

In the case of fundraising for charitable organizations, public servants should ensure that they have prior authorization from their Deputy Head to solicit donations, prizes or contributions in kind from external organizations or individuals. The Deputy Head may require that the activities be curtailed, modified or terminated where it is determined that there is a real or apparent conflict of interest or an obligation to the donor.

What does this mean? What activities do these passages cover?

Solicitation for charitable activities (such as the Government of Canada Charitable Workplace Campaign) is allowed, but requires the prior approval in writing of the Deputy Head (Deputy Minister, Agency Head). This is to ensure that the Deputy Head, who has full accountability for upholding the Code in his or her department, can make the final determination as to whether conflict of interest considerations apply. Specifically, the Deputy will want to ensure that soliciting private agencies with which the department or agency has a business relationship or is in negotiations to establish a business relationship does not give rise to concerns about a real, potential or apparent conflict of interest.

Soliciting support for official social activities is not permitted. A number of organizations within the Public Service are accustomed to offer activities such as golf tournaments. In these situations, the organizations frequently turn to the private sector to obtain prizes in cash or in kind. Although the practice was not permitted under the earlier Conflict of Interest and Post-Employment Code for the Public Service, we recognize that the latter may not have been strictly enforced. Nonetheless, the new Code makes the ban on soliciting the private sector clearer. Golf tournaments can still be organized. However, organizers can no longer solicit prizes from the private sector

Draws, usually called "50-50" draws, i.e., collections taken up by public servants to establish a sum of money, half of which would go to the winner of the draw and the other half to a charity are not covered by the Values and Ethics Code because they do not constitute solicitation of the private sector. The draws are social and voluntary activities, shared by public servants. However, public servants should be aware that draws of this type are regulated by provincial authorities and subject to licensing requirements. Further, departments and agencies may have specific policy related to these kinds of activities, and organizers should seek permission before getting started.(recent addition)

Thematic considerations: Post-employment

The Values and Ethics Code for the Public Service (the Code), which replaces the Conflict of Interest and Post-Employment Code for the Public Service, clarifies the measures to be taken when a government public servant leaves the public service. Some relevant questions have been presented in the previous case studies. You will find below an overview of how best to proceed.

A public servant who decides to leave the Public Service shall inform management. The managers shall then remind the public servant's obligations to conform with the post-employment measures set out in Chapter 3 of the Code.

If the public servant judges that future employment could place him or her in real, apparent or potential conflict of interest, the public servant should inform the Deputy Head through a confidential report submitted to the human resources services.

After assessing the confidential report, the Deputy Head (or the delegated authority) shall contact the public servant and inform that person of the post-employment measures to be taken. In most cases, a one-year limitation period will be imposed in order to limit contacts between the ex-public servant and private-sector organizations with which that person had business dealings. However, depending on the situation, the Deputy Head may waive the limitation period or, on the other hand, may impose stricter measures.

Once the public servant has left the Public Service, there is now way to guarantee that the ex-public servant will comply with the post-employment measures set out in the Code. The Code is an employer's policy, not a statute. It applies only to government public servants. That said, the employer can ensure that former colleagues do not contravene the Code by providing the ex-public servant with inside information (preferential treatment).

Thematic considerations: Supervising or working with a friend or family member.

The Values and Ethics Code for the Public Service (the Code), which replaces the Conflict of Interest and Post-Employment Code for the Public Service, clarifies the employer's position in regard to preferential treatment. However, this is a serious issue and it merits further consideration.

Can I compete for a position that is supervised by my spouse or a member of my family? The answer is yes but certain measures need to be taken. While it is true that a person cannot be "punished" because he or she is a member of the family of the manager, the appearance of conflict of interest is a serious matter that needs to be taken into account.

In such a situation, the manager should recuse himself completely and publicly from the competition and hiring process. It would also be recommended that candidates selected to go on in the competition should be informed of the situation. The most important thing is to ensure that the competition is as transparent as possible. These measures do not completely eliminate the possible appearance of conflict of interest but they make certain that managers can explain and justify their decisions.

Chapters 2 and 3 - Jurisprudence

Introduction

This section presents a series of cases for which the Public Service Staff Relations Board (PSSRB) has tabled a decision. While the cases refer to the Conflict of Interest and Post-employment Code for the Public Service, they offer useful instruction for questions that may be raised by application of the Values and Ethics Code for the Public Service.

Case No. 1: Preferential treatment and acceptance of benefits for services rendered

Values and Ethics Code for the Public Service: Chapter 2

The griever, a commodities specialist at Customs and Excise, was suspended for three months for accepting benefits in the form of reduced chiropractic fees in return for advice that he gave to a chiropractor on ways of reducing customs duties on a chiropractic table. The griever contended that he was not aware that the reduction of fees was related to the advice provided. The adjudicator ruled that the griever had committed a grave error of judgment in accepting the benefits and in failing to disclose the conflict to his supervisors. However, he reduced the suspension to one month (reference: Larmond A. 166-2-9414).

Case No. 2: Outside employment activities

Values and Ethics Code for the Public Service: Chapter 2

The griever, an employment counsellor in Toronto, was suspended for three days for conflict of interest for printing his government telephone number on his professional business cards. In addition, he tried to persuade a client, an expanding sales company, to join his business activities. The adjudicator ruled there was a conflict of interest and abuse of confidence that the griever still refused to recognize. The adjudicator found the penalty bordered on leniency, and the grievance was dismissed (reference: Ennis B. F. 166-2-8773).

Case No. 3: Assets /liabilities / full disclosure / outside employment

Values and Ethics Code for the Public Service: Chapter 2

The public servant, a primary products inspector, employed as a supervisory meat grader, filed grievances after being suspended for 10 days, for 30 days, and discharged. The adjudicator ruled, on the evidence, that the griever had not provided a full report, when requested to by departmental authorities as required under conflict of interest guidelines. The adjudicator also ruled, on the evidence, that the employer was justified in instructing the griever to divest himself of his outside interests (a butcher's shop) and that if the employer had not done so, it would have significantly damaged its reputation and credibility among meat-processing plants and consumers in general. The grievances were dismissed. (reference:166-2-10263 Paterson, R.J.).

Case No. 4: Deriving extra benefit from official duties / Abuse of confidence / Breach of security / Violation of oath of office

Values and Ethics Code for the Public Service: Chapter 1, Ethical values and Chapter 2.

The griever, an office public servant, was discharged for knowingly using confidential departmental information to create a data base which he offered for sale to drug stores. His activities were quickly stopped, but he had time to receive three cheques and to cash one of them. The griever stated that his supervisor had approved the plan but the adjudicator was not convinced. He ruled that the griever had violated conflict of interest guidelines and that the employer-public servant relationship was beyond repair. The grievance was dismissed (reference: Kemle S.J. 166-2-25305).

Case No. 5: Outside employment / Potential risk of conflict

Values and Ethics Code for the Public Service: Chapter 2.

The griever challenged a two-month suspension for refusal to disassociate himself entirely from a business company of which he was president, given the serious risk of conflict of interest associated with his duties as nautical services officer. The adjudicator held that the griever had demonstrated very poor judgment and an unreasonable attitude in refusing to recognize, over a period of several weeks, and even several months, that his activities on behalf of the private company and for himself, were entirely incompatible with his position as a public servant. It is not enough that a public servant is convinced of his innocence and his integrity, nor is it necessary to prove that he has been disloyal to his employer. Even in the absence of proof of voluntary improper action, an intelligent person could easily recognize that a real or potential conflict of interest goes against government policy. The grievance was dismissed (reference: Atkins 166-2 889).

Annex 1

Delegation of Authority under the Values and Ethics Code for the Public Service

The Values and Ethics Code for the Public Service is a policy of the Treasury Board of Canada.

This policy is governed by the Financial Administration Act (RS 1985, c. F-11). Subsection 11(2) gives the Treasury Board the authority to issue policies on human resources management.

The Treasury Board may delegate, under the terms and conditions it determines, its authority for human resources management to a department's Deputy Head or to the chief executive of any portion of the Public Service (subsection 12 (1)). This policy delegates its powers and functions for its administration to these officials, who may in turn delegate them to their subordinates or any other individual, subject to the terms and conditions of delegation (subsection 12(3)).

Notwithstanding the fact that sub-delegation is permitted, the Office of Public Service Values and Ethics suggests that sub-delegation be limited to the Director General level. Too much sub-delegation would increase the number of interpretations of the Code, thus resulting in an uneven application of the Values and Ethics Code for the Public Service.

Given the sensitivity of some of the conflict of interest and post-employment issues, it would be important to bear in mind that the Senior Official may be accountable to the House of Commons and the public. As well, conflict of interest issues may easily attract media attention.

Annex 2 - Post-employment measures

Table of positions classified as EX, EX minus 1, EX minus 2 and their equivalent

EX equivalent   EX minus 1 equivalent   EX minus 2 equivalent
ac-03   ac-02    
    ag-05   ag-04
ai-nop-06, 07,08   ainop-04, 05; aiopr-04,05   ainop-02, 03; aiopr-03
aoetp-01, 02   aocai-05, aohps-03   aocai-04, aohps-02
ar-07   ar-06   ar-05
as-08   as-07   as-06
au-06   au-05   au-04
    bi-05   bi-04
    ca-02   ca-01
    ch-05   ch-04
co-04   co-03   co-02
cs-05       cs-04
de-03,04   de-02    
ds-05,06,07,08dsaaa07, dsbbb07   ds-04    
ededs-06   ededs-05   ededs-04, edlat-03
    eg-08   eg-07
    el-09   el-08
eneng-06, ensur-06   eneng-05, ensur-05   eneng-04, ensur-04
es-07, es-08   es-06   es-05
    fi-04   fi-03
    fo-04   fo-03
    fs-02    
    gt-08   gt-07
    hr-05   hr-04
    is-06   is-05
laaaa02, 03; labbb02, 03, laccc03; lai 02, laii 02       la-01
    ls-06   ls-05
ma-06,07   ma-05   ma-04
mdmof-02, 03, 04, 05; mdmsp-01, 02, 03   mdmof-01    
mt-08   mt-07   mt-06
    ndadv03, ndhme05    
    nucon-01; nuhos-08; nuchn-08   nuchn-07, nuhos07
    om-06   om-05
    op-04   op-03
pc-05   pc-04   pc-03
    pe-06   pe-05
    pg-06   pg-05
    ph-04   ph-03
        picgc-08
pm-07   pm-06;   pm-05
    pr-05   pr-04
    ps-05   ps-04
    ro-07   ro-06
serem01, 02, 03; seres03, 04, 05   seres-02    
    sgpat-07; sgpat-08; sgsre-08   sgpat-06; sgsre-07
    si-07, 08   si-06
somao13   soins-02; somao-12   soins-01; somao-11
    swscw-05    
ti-09   ti-08   ti-07
    tr-05   tr-04
ut-04       ut-03
vm-05   vm-04   vm-03
wp-07   wp-06   wp-05

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