Industry Canada Values and Ethics Code

Chapter II: Conflict of Interest

This chapter provides direction and measures to assist public servants at Industry Canada in effectively dealing with real, potential and apparent conflict of interest situations which may arise during and after employment in the public service. Preventing, managing or resolving conflict of interest situations is one of the principal means of maintaining public trust and confidence in the impartiality and integrity of the public service. This chapter is to be read in conjunction with chapter I of this Code.

Requirements for Public Servants

Following are the conflict of interest and post-employment requirements that are a condition of employment for public servants^{Footnote 4} at Industry Canada as set out in the Treasury Board Policy on Conflict of Interest and Post-Employment. These requirements are grounded in and serve to uphold the values contained in the Values and Ethics Code for the Public Sector and in this Code. By upholding these ethical standards, public servants conserve and enhance public confidence in the honesty, fairness and integrity of the public service. These requirements also form part of Canada's commitments as a signatory to international agreements on values and ethics.

Definitions

Conflict of Interest:

a situation in which a public servant has private interests that could improperly influence the performance of his or her official duties and responsibilities or in which a public servant uses his or her office for personal gain. A real conflict of interest exists at the present time, an apparent conflict of interest could be perceived by a reasonable observer to exist, whether or not it is the case, and a potential conflict of interest could reasonably be foreseen to exist in the future.

Conflict of Duties:

a conflict that arises, not because of a public servant's private interests, but as a result of one or more concurrent or competing official responsibilities. For example, these roles could include his or her primary public service employment and his or her responsibilities in an outside role that forms part of his or her official duties, such as an appointment to a board of directors, or other outside function.

Prevention of Conflict of Interest

Public servants at Industry Canada maintain public confidence in the objectivity of the public service by preventing and avoiding situations that could give the appearance of a conflict of interest, result in a potential for a conflict of interest or result in an actual conflict of interest. Conflict of interest does not relate exclusively to matters concerning financial transactions and the transfer of economic benefit. While financial activity is important, conflicts of interest in any area of activity can have a negative impact on the on the perceived objectivity of the public service. With the permanent and pervasive nature of information technology, public servants should be particularly sensitive to real, apparent or potential conflicts of interest that may arise from messages and information transmitted via the Internet and other media.

It is impossible to foresee every situation that could give rise to a real, apparent or potential conflict of interest. When in doubt, public servants should refer to the requirements found in this Code to guide appropriate action. Public servants can also seek guidance from their manager, their Human Resources Advisor, an advisor from the Labour Management Relations Office or the Senior Official for Values and Ethics.

In addition to the requirements outlined in this Code, public servants are also required to observe any specific conduct requirements contained in the statutes governing Industry Canada and their profession, where applicable. Employees must also comply with any specific guidelines applicable to their particular organization within the Department.

General Responsibilities and Duties

A public servant's general responsibilities and duties include:

1. Taking all possible steps to recognize, prevent, report, and resolve any real, apparent or potential conflicts of interest between their official responsibilities and any of their private affairs;
2. Unless otherwise permitted in this chapter, refraining from having private interests, which would be unduly affected by government actions in which they participate, or of which they have knowledge or information;
3. Not knowingly taking advantage of, or benefiting from, information that is obtained in the course of their duties that is not available to the public;
4. Refraining from the direct or indirect use of, or allowing the direct or indirect use of government property of any kind, including property leased to the government, for anything other than officially approved activities;
5. Not assisting private entities or persons in their dealings with the government where this would result in preferential treatment of the entities or persons;
6. Not interfering in the dealings of private entities or persons with the government in order to inappropriately influence the outcome;
7. Maintaining the impartiality of the public service and not engaging in any outside or political activities that impair or could be seen to impair their ability to perform their duties in an objective or impartial manner;
8. Ensuring that any real, apparent or potential conflict that arises between their private activities and their official responsibilities as a public servant is resolved in the public interest;
9. Ensuring that benefits provided or offered to Industry Canada by outside entities or individuals with whom the organization has past, present or potential official dealings are managed appropriately and that any resulting organizational conflict of interest is resolved in the public interest; and
10. Ensuring that concurrent outside appointments, such as to a board of directors, are managed appropriately and that any resulting conflicts of duties are resolved in the public interest.

During Employment

This section contains requirements for preventing and dealing with situations of conflict of interest during employment.

Public servants are required to report in writing to the Deputy Minister (or delegated authority), all outside activities, assets and interests that might give rise to a real, apparent or potential conflict of interest in relation to their official duties. Such a report is to be made within 60 days of their initial appointment or any subsequent appointment, transfer or deployment. Reports should be made using the Industry Canada Disclosure Reporting Form and submitted to the Labour Management Relations Division, Human Resources Branch^{Footnote 5}.

On a regular basis thereafter, and every time a major change occurs in their personal affairs or official duties, every public servant is required to review his or her obligations under this Code, the Values and Ethics Code for the Public Sector and the Treasury Board Policy on Conflict of Interest and Post-Employment. If a real, apparent or potential conflict of interest exists, he or she is to file a report in a timely manner. In addition, Industry Canada may require public servants working in areas or with responsibilities identified to have a high risk of conflict of interest to attest regularly that they understand their obligations under this Code and indicate whether or not they need to submit a new or revised report.

When negotiating financial arrangements with outside parties, public servants are to comply with the requirements listed in this Code as well as other related directives or policies issued by the Treasury Board. When in doubt, public servants are to immediately report the situation to their managers in order to seek advice or direction on how to proceed.

Assets

Public servants are required to evaluate their personal assets, taking into consideration the nature of their official duties and the characteristics of their assets. If there is any real, apparent or potential conflict of interest between the carrying out of their official duties and their assets, they are to report this matter to the Deputy Minister (or delegated authority), in a timely manner.

Where the Deputy Minister (or delegated authority) determines that any of these assets results in a real, apparent or potential conflict of interest in relation to their official duties, public servants may be required to divest those assets, or to take other measures to resolve the conflict. Public servants may not sell or transfer assets to family members or anyone else for the purpose of circumventing the compliance requirements.

The types of assets that should be reported and the procedures for reporting and managing such assets are set out in the TBS Directive on Reporting and Managing Financial Conflicts of Interest.

Outside Employment or Activities

Public servants may engage in employment outside the public service and take part in outside activities unless the employment or activities are likely to give rise to a real, apparent or potential conflict of interest or would undermine the impartiality of the public service or the objectivity of the public servant.

Public servants are required to provide a report to the Deputy Minister (or delegated authority) when their outside employment or activities might subject them to demands incompatible with their official duties and obligations, or cast doubt on their ability to perform their duties or responsibilities in a completely objective manner. The Deputy Minister (or delegated authority) may require that the outside activities be modified or terminated if it is determined that a real, apparent or potential conflict of interest exists.

Public servants who receive a benefit or income either directly or indirectly from a contract with the Government of Canada are required to report to their Deputy Minister (or delegated authority) on such contractual or other arrangements. The Deputy Minister (or delegated authority) will determine whether the arrangement presents a real, apparent or potential conflict of interest, and may require that the contract be modified or terminated.

Political Activities

Any public servant considering involvement in political activity should seek the advice of their manager, their human resources advisor, the designated departmental official or the Public Service Commission (PSC) before acting.

Public servants are required to seek and obtain permission from the PSC to seek nomination for or be a candidate in a federal, provincial, territorial, or municipal election, in accordance with Part 7 of the Public Service Employment Act (PSEA).

"Political activities" are defined in Part 7 of the PSEA as "any activity in support of, within or in opposition to a political party; carrying on any activity in support of or in opposition to a candidate before or during an election period; or, seeking nomination as or being a candidate in an election before or during the election period."

Any public servant who wishes to engage in a political activity not covered by Part 7 of the PSEA that could constitute a conflict of interest is required to report the proposed activity to the Deputy Minister (or delegated authority).

Similarly, any public servant who is subject to this Code but who is not subject to Part 7 of the PSEA, including casual and part-time workers who wish to engage in any political activity that could constitute a conflict of interest, is to report the proposed activity to the Deputy Minister (or delegated authority).

Use of Social Media

Industry Canada recognizes the importance of the use of social communication tools to reach and interact with the public and its employees. Use of social networks in an official capacity must comply with the Government of Canada legislative and policy requirements and the departmental policy on the use of the internet and electronic networks. Bearing in mind the highly public nature of social media and social networks, it is particularly important to be aware of the requirements of this Code such as respect for democracy, duty of loyalty, requirements for security of information, maintaining the professionalism and reputation of the department as well as respect for people. Employees using social media for personal or professional use are expected to use the same kind of judgement and criteria as would be applied to any other workplace decisions. Employees should comply with the Treasury Board Guideline for External Use of Web 2.0 and the Industry Canada Guidance Document on the Use of Social Media.

Serving on Board of Directors

Participation by public servants on a board of directors can foster good relations with stakeholders and the public, whether membership arises from the public servant's private interests or from their official duties. However, the risks of conflict of interest or conflict of duties as well as any potential liability issues must be addressed. Industry Canada employees who currently sit on or are considering joining a board of directors where there is the potential for conflict of interest or conflict of duties are to report the matter to the Deputy Minister (or delegated authority) and complete the Board of Directors Assessment Tool.

Gifts, Hospitality and other Benefits

Public servants are expected to use their best judgment to avoid situations of real, apparent or potential conflict of interest by considering the following criteria on gifts, hospitality and other benefits and in keeping with this Code, the Values and Ethics Code for the Public Sector and the Treasury Board Policy on Conflict of Interest and Post-Employment.

Public servants are not to accept any gifts, hospitality or other benefits that may have a real, apparent or potential influence on their objectivity in carrying out their official duties and responsibilities or that may place them under obligation to the donor. This includes activities such as free or discounted admission to sporting and cultural events, travel or conferences.

The acceptance of gifts, hospitality and other benefits is permissible if they are infrequent and of minimal value, within the normal standards of courtesy or protocol, arise out of activities or events related to the official duties of the public servant concerned, and do not compromise or appear to compromise the integrity of the public servant concerned or of Industry Canada.

Public servants are to seek written direction from the Deputy Minister (or delegated authority), where it is impossible to decline gifts, hospitality or other benefits that do not meet the principles set out above, or where it is believed that there is sufficient benefit to the organization to warrant acceptance of certain types of hospitality or travel.

Solicitation

With the exception of fundraising for officially supported activities such as the Government of Canada Workplace Charitable Campaign, public servants may not 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. When fundraising for supported official activities, public servants should ensure that they have prior written authorization from the Deputy Minister (or delegated authority) in order to solicit donations, prizes or contributions in kind from external organizations or individuals.

Similarly, if an outside individual or entity, with whom Industry Canada has past, present or potential official dealings, offers a benefit to the organization such as funding for an event or a donation of equipment, public servants are to consider whether any real, apparent or potential conflict of interest exists, and obtain the consent in writing of the Deputy Minister (or delegated authority) prior to accepting any such benefit.

The Deputy Minister (or delegated authority) may require that the activities be modified or terminated where it is determined that there is a real, potential or apparent conflict of interest or an obligation to the donor. These provisions are designed to ensure that this Code is consistent with paragraph 121(1)(c) of the Criminal Code.

Avoidance of Preferential Treatment

Public servants are responsible for demonstrating objectivity and impartiality in the exercise of their duties and in their decision-making, whether related to staffing, financial awards or penalties to external parties, transfer payments, program operations or any other exercise of responsibility.

This means that they are prohibited from granting preferential treatment or advantages to family, friends or any other person or entity. They are not to offer extraordinary assistance to any entity or persons already dealing with the government without the knowledge and support of their supervisor. They also are not to disadvantage any entity or persons dealing with the government because of personal antagonism or bias.

Providing information that is publicly accessible is not considered preferential treatment.

Prevention of Post-Employment Conflict of Interest Situations

This section contains requirements for preventing post-employment conflict of interest situations before and after leaving office.

All public servants have a responsibility to minimize the possibility of real, apparent or potential conflict of interest between their most recent responsibilities within the federal public service and their subsequent employment outside the public service.

Before Leaving Employment

Before leaving their employment with the public service, all public servants are to disclose their intentions regarding any future outside employment or activities that may pose a risk of real, apparent or potential conflict of interest with their current responsibilities and discuss potential conflicts with their manager or the Deputy Minister (or delegated authority).

Post-employment Limitation Period for Public Servants in Designated Positions

The Deputy Minister (or delegated authority) is responsible for designating positions of risk for post-employment conflict of interest situations.

Certain positions at Industry Canada involve official duties that raise post-employment concerns. These positions include all those classified as executive (EX) positions, those classified as EX minus 1, EX minus 2 and their equivalents. The Deputy Minister (or delegated authority) may designate certain other positions as ones that raise post-employment concerns, based on an assessment of the conflict of interest or post-employment risk inherent to the positions.

Public servants in these designated positions are subject to a one-year limitation period after leaving office. Before leaving office and during this one-year limitation period, these public servants are to report to the Deputy Minister (or delegated authority) all firm offers of employment or proposed activity outside the public service that could place them in a real, apparent or potential conflict of interest with their public service employment. They are also to disclose immediately the acceptance of any such offer.

In addition, these public servants may not, during this one-year period, without the Deputy Minister's (or delegated authority's) authorization:

1. accept appointment to a board of directors of, or employment with, private entities with which they had significant official dealings during the period of one year immediately prior to the termination of their service. The official dealings in question may either be directly on the part of the public servant or through their subordinates;
2. make representations to any government organization on behalf of persons or entities outside of the public service with which they had significant official dealings, during the period of one year immediately prior to the termination of their service.^{Footnote 6} The official dealings in question may either be directly on the part of the public servant or through their subordinates; or
3. give advice to their clients or employer using information that is not publicly available concerning the programs or policies of the departments or organizations with which they were employed or with which they had a direct and substantial relationship.

Waiver or Reduction of Limitation Period

A public servant or former public servant may apply to the Deputy Minister for a written waiver or reduction of the limitation period. The public servant is to provide sufficient information to assist the Deputy Minister (or delegated authority) in making a determination as to whether to grant the waiver taking into consideration the following criteria:

1. the circumstances under which the termination of their service occurred;
2. the general employment prospects of the public servant or former public servant;
3. the significance to the government of information possessed by the public servant or former public servant by virtue of that individual's position in the public service;
4. the desirability of a rapid transfer of the public servant's or former public servant's knowledge and skills from the government to private, other governmental or non-governmental sectors;
5. the degree to which the new employer might gain unfair commercial or private advantage by hiring the public servant or former public servant;
6. the authority and influence possessed by that individual while in the public service; and/or
7. any other consideration at the discretion of the Deputy Minister.

Resolution

With respect to the arrangements necessary to prevent real, apparent or potential conflict of interest, or to comply with the requirements set out above, it is expected that situations will be resolved through discussion and agreement between the public servant and the Deputy Minister (or delegated authority). When a public servant and the Deputy Minister (or delegated authority) disagree on the appropriate arrangements to resolve a real, apparent or potential conflict of interest, the disagreement will be resolved through the existing departmental conflict resolution procedures.

Footnotes

Footnote 4

Order-in-Council appointees, such as the Deputy Minister and Associate Deputy Minister, are subject to the Conflict of Interest Act, and are not subject to Chapter II of this Code.

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Footnote 5

Employees of the Competition Bureau should report directly to the Bureau's Deputy Commissioner of Compliance and Operations Branch, who is the delegated authority at the Bureau for the administration and enforcement of this Code.

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Footnote 6

Assistant deputy ministers and their equivalents are subject to the Lobbying Act. In the case of any conflict between this Code and the Act, the Act takes precedence.

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