Executive Orders 12674 and 12731: A Complete Guide to Federal Conduct Principles

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Table of Contents#

1. Background: What Are EO 12674 and EO 12731?
2. Core Conduct Principles Outlined in the Orders
3. Key Differences Between EO 12674 and EO 12731
4. Who Must Comply With These Orders?
5. Consequences of Non-Compliance
6. FAQs About EO 12674 and EO 12731
7. Final Takeaways
8. References

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Background: What Are EO 12674 and EO 12731?#

EO 12674 (April 12, 1989)#

Signed by President George H.W. Bush, this order replaced the 25-year-old EO 11222 as the primary ethical framework for executive branch employees. It established 14 core principles of conduct, with a focus on prioritizing public good over private gain and eliminating conflicts of interest in government work.

EO 12731 (October 17, 1990)#

Issued 18 months after EO 12674, this order addressed gaps and ambiguities in the original framework. It added enforceable compliance requirements, clarified coverage for non-permanent personnel, and introduced specific restrictions to prevent the "revolving door" between government service and private industry lobbying.

Both orders are overseen by the U.S. Office of Government Ethics (OGE), which provides agency-specific guidance and training to ensure consistent implementation across the executive branch.

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Core Conduct Principles Outlined in the Orders#

The two orders establish 14 binding principles, grouped into four easy-to-understand categories below:

1. Public Trust & Loyalty Principles#

• Public service is a public trust: All employees must prioritize loyalty to the U.S. Constitution, federal laws, and ethical standards over personal gain or private organizational interests.
• Employees must avoid any action that creates the appearance of a violation, even if no technical rule is broken. For example, a contracting officer should not attend a private dinner hosted by a vendor bidding on a contract their team is evaluating, even if they pay for their own meal, as it creates the perception of favoritism.
• No employee may make unauthorized promises or commitments that bind the U.S. government to actions not approved by agency leadership.

2. Conflict of Interest & Financial Rules#

• Employees may not hold financial interests (including stocks, business ownership, or side gigs) that conflict with their official duties. For example, an EPA employee responsible for regulating pharmaceutical waste cannot hold stock in a major drug manufacturing company.
• Non-public government information may never be used for personal financial gain, or shared with third parties for their private benefit.
• All employees must meet legal financial obligations, including federal taxes, child support payments, and court-ordered debts.

3. Gift & Anti-Influence Rules#

• Employees may not solicit or accept gifts, favors, or benefits from individuals or entities that: do business with their agency, are regulated by their agency, are seeking official action from their agency, or have interests that may be impacted by the employee’s official duties.
• A limited $20 de minimis exception applies for unsolicited, low-value items (like a branded mug or coffee) as long as the total value of gifts from a single source does not exceed$50 per calendar year. Employees are always encouraged to check with their agency ethics official before accepting any gift.

4. Accountability & Professional Conduct Rules#

• Employees must perform their duties impartially, with no favoritism for family members, friends, or private organizations they are affiliated with.
• Outside employment or volunteer activities may not conflict with official duties, or require the employee to use their government position for private benefit.
• All employees are required to report waste, fraud, abuse, or corruption to appropriate oversight authorities, with whistleblower protections for good-faith reports.

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Key Differences Between EO 12674 and EO 12731#

While EO 12674 laid out the foundational conduct principles, EO 12731 added enforceable operational rules:

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Who Must Comply With These Orders?#

The rules apply to nearly all personnel working for or on behalf of executive branch agencies, including:

• Career civilian employees, temporary staff, and political appointees
• Unpaid interns and volunteers working for executive branch agencies
• Federal contractors and subcontractors with access to sensitive government information or involvement in procurement decisions
• Personnel at independent executive agencies (including NASA, EPA, and FDA) that have adopted the principles as part of their internal ethics rules

Note: Legislative and judicial branch employees are not covered by these orders, as they have separate, branch-specific ethics frameworks.

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Consequences of Non-Compliance#

Violations can result in penalties ranging from informal corrective action to criminal prosecution, depending on the severity of the offense:

1. Minor violations: Informal counseling from agency ethics officials, written reprimand, or required corrective action (e.g., returning an accepted gift, recusing from a conflicting project)
2. Administrative penalties: Suspension without pay, demotion, or termination of employment
3. Financial penalties: Fines up to $50,000 per violation, repayment of any illegal gains, or civil penalties equal to 3x the value of benefits received from the violation
4. Criminal penalties: Felony charges, jail time, and permanent bans from federal employment for severe violations including bribery, insider trading, or intentional misuse of public office for private gain

For example, in 2022, a U.S. Department of Defense contracting officer was fired and fined $15,000 for accepting free concert tickets and hotel stays from a defense contractor they were overseeing, in direct violation of EO 12731’s gift rules.

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FAQs About EO 12674 and EO 12731#

Q: I work remotely as a federal employee. Do these rules still apply to me?#

A: Yes. The rules apply regardless of your work location, including work-from-home arrangements. Your official duties and government affiliation do not change when you work off-site.

Q: Can I report an ethics violation anonymously?#

A: Yes. All executive branch agencies operate anonymous ethics hotlines for reporting suspected violations. Good-faith reports are also protected under federal whistleblower laws, which prohibit retaliation against employees who report misconduct.

Q: How often do I need to complete ethics training?#

A: Most agencies require annual ethics training for all covered employees. Senior officials, procurement staff, and personnel with access to classified information may be required to complete training more frequently.

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Final Takeaways#

Executive Orders 12674 and 12731 are not just bureaucratic red tape: they are designed to protect the integrity of public service and maintain the public’s trust in government operations. If you are unsure whether an action complies with these rules, always reach out to your agency’s dedicated ethics official for guidance before proceeding.

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References#

1. U.S. Federal Register. (1989, April 17). Executive Order 12674: Principles of Ethical Conduct for Government Officers and Employees. Retrieved from https://www.federalregister.gov/documents/1989/04/17/89-9599/executive-order-12674-principles-of-ethical-conduct-for-government-officers-and-employees
2. U.S. Federal Register. (1990, October 22). Executive Order 12731: Principles of Ethical Conduct for Government Officers and Employees. Retrieved from https://www.federalregister.gov/documents/1990/10/22/90-26765/executive-order-12731-principles-of-ethical-conduct-for-government-officers-and-employees
3. U.S. Office of Government Ethics. (2023). Guide to Executive Branch Ethical Conduct. Retrieved from https://www.oge.gov/training-and-outreach/ethics-resources-for-employees
4. U.S. Merit Systems Protection Board. (2022). Whistleblower Protection Rights for Federal Employees. Retrieved from https://www.mspb.gov/whistleblower.htm