Beyond Reproach: The Case of the Job-hunting Client

Government Services Insider 2004
Stuart Gilman

 Concern: "There's always someone who doesn't get the word-or read the papers. A former major client of ours who is still in the government has raised the possibility of employment twice recently. We still do work with her agency, but not with her program. She's implied that she could do us some good and also seemed to suggest that not hiring her would be a mistake. I'm afraid to think what that means. This situation poses several challenges. What should I do?"

Response: There are several issues within this question. There are obvious legal challenges and client management challenges, but the most critical issue is the ethics challenge.

All of the relevant legal and business questions in this case are founded on fundamental ethical principles. Values such as fairness and openness (transparency) are critical for you as a contractor. The procurement and contracting process requires a level playing field as well as an open, clear process. Your competitive advantage is your product, your price and your reputation. The former client might have skills you actually want, but what would you be getting along with them? Would you hire an employee who had a tendency to cut corners to get her way? What damage could she do to your organization's culture?

Furthermore, you have a right to expect that a public officer will not use his or her public office for private gain. This kind of request is an abuse of her position, and it should be offensive to you as a taxpayer. The ethical analysis suggests that you should not give in to this kind of extortion. The word extortion might sound harsh, but what else would you call using an implied threat, with the apparent power to make it stick, in order to get someone to do something you want?

The client-handling challenges are tricky but manageable. Depending on your relationships in the agency, you could follow several avenues: You could be direct with her and say that you appreciate her interest but you have no suitable positions now (assuming this is the truth!). Alternatively, you could raise your concern with the agency's contracting official overseeing your current contract(s), which accomplishes two things: the contracting officer is made aware of a potential problem in the agency and it gets you "on the record." A third option is to discuss the issue with the Designated Agency Ethics Official (DAEO)- every federal department and agency has one - and allow him or her to work internally to protect you from payback. Finally, if you feel that none of the above will work, you could report the issue to the Inspector General, whose job is to prevent waste, fraud and abuse.

Last, the legal challenges are multifaceted. Even though the work you did directly for her is over, she might still be covered by strict standards of conduct related to soliciting or negotiating for employment. There could be potential violations of procurement laws and regulations. The Boeing case in late 2003, which led to the firing of the CFO and resignation of the CEO, demonstrates the seriousness of this issue. Finally, if you did hire the employee, you would need to get a firm grasp of her restrictions under the federal post-employment law. Especially given her cavalier attitude, be prepared to closely monitor her adherence to them.

It is sometimes difficult to do the right thing for the right reason. But in this case, there appear to be no practical or principled reasons for offering this person a job.

* The Ethics Resource Center, in Washington, DC, helps organizations to create ethical work environments through education, research, training, and global partnerships. Dr. Gilman can be reached at ethics@ethics.org.