Take Command is developed and delivered by First Command Educational Foundation, a non-profit group dedicated to improving the financial readiness and economic position of the men and women who protect our country and preserve our freedom.

The Take Command Program is an interactive financial education program for active duty, reserve, and cadets of any branch of the U.S. Military and their spouses or partners. Students who complete the Take Command Program will be eligible to complete a Transfer of Credit through The American College of Financial Services to receive college credit through our consumer financial education courses.

This partnership supports the mission of both First Command Educational Foundation and the American College Center for Military and Veterans Affairs. Through our work together, we aim to provide education in financial readiness and career opportunities to men, women, and their spouses who have honorably served.   

Prudential PLC’s CFO resigned earlier this year because of an investigation into a code of conduct violation.  A recent WSJ article reveals that the breach was in connection with the CFO’s efforts to help the son of an insurance regulator in Hong Kong, who had approached him about a potential job opportunity.

The regulator led the Insurance Authority of Hong Kong’s oversight of Prudential PLC and other life insurance companies. She too left her job at the Insurance Authority at the termination of her contract this summer. The company has declined to comment on the case to the Journal.

Networking and doing informational interviews are the norm in business for job seekers. It’s an understandable approach to recruitment, as hiring managers would generally prefer to hire someone that comes with a known reference than one selected at random by an algorithm. But when do relationships cross the line towards nepotism and unethical favoritism?

Conflicts of interest in hiring can be a murky area of ethics for employees. Many believe that using your relationships and networks are critical to finding a good hire. LinkedIn’s top tip for how to get hired by a large company is to develop a strategy to get an internal referral. Reconnect with an old friend, they suggest, or befriend someone who works there.

Yet favoritism and conflicts of interest are among the highest incidents of observed unethical behavior in practice, according to the annual Global Business Ethics Survey (GBES). The Ethics and Compliance Initiative has been administering this research for 20 years. One of their conclusions from the 2023 results is that the observations of all types of misconduct are at an all-time high level, at 63 percent.

Two-thirds of employees around the world indicated that they’ve observed at least one instance of a violation of a company code, policy, or law. Among the top observed misconduct is favoritism among employees, and inappropriate hiring practices.

The discrepancy between the norms of hiring and these survey results may be because of the differing characterizations of conflicts of interest. A common description of a conflict is a circumstance when you or your company benefits at the expense of another person or company – e.g., the company makes money by doing a financial trade that benefits the company but not the client, who suffers a loss. Consistent with this view, when there are decisions that make everyone better off, then it’s not a conflict. Both parties are better off when that decision is made, so it’s a win-win.

An alternate view is that even when both parties benefit, there is a potential conflict of interest when one party stands to benefit and could sway the situation without full disclosure of those influences; or when there are personal relationships involved that could have skewed the decision-making in favor of a third party.

I’ve observed these divergent perspectives when teaching. One case I often use involves an employee who is responsible for hiring company vendors. He’s identified two vendors that are, on paper, equally qualified. In a casual conversation with one vendor, the employee mentions that his wife has a rare cancer and is struggling to find good care. The vendor knows a specialist at the local hospital and can get her to the top of the list for treatment.

The case is designed to heighten the emotional sensitivity of the situation, yet the key takeaway should be that the employee should remove himself from the decision-making process and let someone else lead. Students often resist that recusal is necessary because the employee can make everyone better off.  By choosing the vendor who has the relationship with the hospital and helps his wife at the same time, it’s a win-win!

Managing conflicts matters not only because favoritism is unfair to others, but also because it could be an early warning signal for other issues. In 2016, JPMorgan Chase paid a $246 million penalty to settle FCPA charges relating to their referral hiring program in China. Over the seven-year period reviewed, the company retained $100 million in revenues by hiring approximately 100 interns and employees of high-level government officials. These practices seemed to have slid down the slippery slope beyond favoritism to bribery.

Being precise about the definition of a conflict of interest can help thwart potential misperceptions. Prudential PLC said the CFO’s resignation was “in light of an investigation into a code of conduct issue,” according to the WSJ, that was “flagged by Prudential [PLC’s] HR function as a potential conflict of interest.”

Ethics training should also go one step further to provide guidance on conflicts of interest. Many companies provide employees a bonus for referring their friends to the firm. This referral practice is not problematic but when embedded within a goal-oriented, high-paced business culture, employees need clarity to identify the line where banking on personal relationships is indeed a win-win.   
 

The Leadership Symposium and its panel of keynote speakers was made up of knowledgeable leaders from various backgrounds in academics, finance, and the military. The panel included Glenn Gonzales, USAF (Vet.) CEO and Founder of Jet It, Chia-Li Chien, PhD, CFP®, PMP®, CPBC Associate Provost, Graduate Programs at The American College of Financial Services, and Major General Everett Thomas, USAF (Ret.) PhD, Vice President of Mission Solutions Defense & Space Security at Lockheed Martin. It was moderated by Kevin Crawford, USA (Vet.) Vice President of Field Learning & Development at Northwestern Mutual and Center for Military and Veterans Affairs advisory council member.

Crawford directed the panel of speakers in a thoughtful discussion on adaptation of leadership styles to workforce changes pre- and post-COVID-19. Each panel member discussed their various leadership styles, as well as how they changed their styles from in-person to online management and training. All panel members gave keen insights into how to adapt and change during times of stress and difficult economic conditions through both failures and success.

After the Leadership Symposium panel discussion, attendees were treated to a vibrant presentation from Colonel Nicole M. E. Malachowski (USAF, Ret.) as she discussed her theme of “Harnessing Headwinds: Successfully Navigating Change & Adversity."

A 2019 National Women's Hall of Fame inductee and recent Presidential appointee, Colonel Malachowski has over 21 years of experience as an officer, leader, and fighter pilot in the United States Air Force. Upon her commission into the military, she was competitively selected to fly combat aircraft and embarked on an adventure among the first group of women to fly modern fighter aircraft. She has had the honor of commanding a fighter squadron, flying as a USAF Thunderbird pilot, serving as a White House Fellow and as an advisor to the First Lady of the United States.

Malachowski kept the audience captivated through highly entertaining anecdotes of her time in the military as a female and her challenging journey to become one of the first female fighter pilots, as well as the first USAF Thunderbird pilot. She imparted impactful pearls of wisdom on overcoming adversity and self-doubt while following your dreams.

The Clambake is the signature event of the American College Center for Military and Veterans Affairs. Along with its Founding Partner and Sponsor, Penn Mutual, the Center for Military and Veterans Affairs aims to support service members, veterans, and spouses in transition to civilian employment. The annual Clambake is the centerpiece of this effort, and as always, it proved to be an evening to remember.

Honoring Our Heroes

The 2023 Clambake was held at the National Constitution Center in Philadelphia, Pennsylvania: a stone’s throw from The College’s headquarters and a perfect venue for a celebration of service and sacrifice in our nation’s proudest tradition. With flags hanging overhead in the grand upstairs gallery, surrounded by full-length windows looking out on Independence Mall and by the words of the Constitution of the United States emblazoned on the walls, the location lent even more gravitas to an event already overflowing with it.

After a cocktail hour in which leaders from The College, the financial services industry, and the military mixed and mingled, the evening’s program began with Jim Roy, PMP®, CMSAF (Ret.) Executive Director of the Center for Military and Veterans Affairs, welcoming the crowd and opening the Clambake with the National Anthem. John Bernesky, an officer of the Pennsylvania State Police Bureau of Liquor Control Enforcement, sang the anthem, accompanied on the stage by a color guard of Reserve Officer Training Corps team members from local colleges, and received a rousing ovation.

Following the anthem, Center Director Phil Easton, CMSGT, USAF (Ret.) presided over another Clambake tradition: the Prisoner of War/Missing in Action tribute. ROTC team members assisted with the ceremony of setting an empty dinner table, featuring many symbolic objects, as a representation of prisoners of war and missing-in-action service members and honoring the memory of those who never came home–a number, as Easton pointed out, that includes 82,000 American soldiers in the last century.

Furthering the Mission

After the tribute, Roy returned to the stage to thank the event’s sponsors and supporters, as well as deliver an update on the Center for Military and Veterans Affairs’ many initiatives to assist service members, veterans, and spouses through financial knowledge and education. The list of accomplishments included a major realignment of the Center’s scholarship program for those in transition to civilian employment and a partnership with The College’s Career Services team to focus on resources for service members, veterans, and spouses–including a Career Pathways Guide outlining how the financial services industry can be an ideal environment for such individuals to grow professionally and carry on their commitment to serving others.

One of the biggest announcements of the evening was Roy’s introduction of the Center’s partnering with First Command Educational Foundation and their Take Command e-learning program. Similar to The College’s consumer financial education program Know Yourself, Grow Your Wealth, Take Command is focused on providing former military service members essential financial financial readiness tools to improve their post-service lives.

Dr. Tracey Jones, head of the Center’s advisory board, then took the stage as the Clambake’s official emcee. With her signature style, Dr. Jones introduced several guests of honor for the evening: military scholars who have benefitted from the Center and The College’s efforts to provide education to transitioning service members, veterans, and spouses. Several of the military scholars spoke to their experiences via video or at the mic, thanking both entities and everyone present for their generosity and support.

Recognizing a Living Legend

Of course, the Clambake wouldn’t be complete without the yearly presentation of The College’s Soldier-Citizen Award. Given to individuals who have made exceptional contributions both to the defense of our nation and to the financial services industry, the Soldier-Citizen Award is the Center for Military and Veterans Affairs’ highest honor. Past recipients have included such pivotal figures in our country’s military as General Lester Lyles, USAF (Ret.), Admiral Thomas Fargo, USN (Ret.), and General David Petraeus, USA (Ret.).

Inducted into the pantheon of Soldier-Citizen Award recipients this year was another legendary figure: Admiral Michael Mullen, USN (Ret.). Most notably, Admiral Mullen served as Chairman of the Joint Chiefs of Staff, the highest position in the US military, from 2007 to 2011 under Presidents George W. Bush and Barack Obama. While in this position, Admiral Mullen spearheaded the elimination of the controversial “Don’t Ask, Don’t Tell” policy instituted in 1994 to curtail debate about LGBTQIA+ individuals serving in the military. Under Admiral Mullen’s leadership, the US military threw its doors wide and committed to openly accepting the service of those from all backgrounds and orientations. He also presided over the military during a tremendous time of change both domestically and globally.

True to form, many of Admiral Mullen’s contemporaries and fellow military members spoke of him as a man of character and integrity above all else. From guest speaker CAPT Karin Vernazza, USN, to the numerous military members who offered congratualtions to Admiral Mullen via video, all identified him as a principled leader who put others before himself and who is unflinchingly committed to doing the right thing. Admiral Mullen accepted the award, a bust of warrior-philosopher Pericles, along with Roy and George Nichols III, CAP®, President and CEO of The College, and humbly thanked everyone present for the honor.

As is tradition, President Nichols closed the Clambake evening by recognizing the team from The College’s Center for Military and Veterans Affairs for all the work they do in serving those who have served us. He also identified the military, service members, and veterans as a key demographic for the financial services industry to mine for the future leaders and advisors of tomorrow.

See the full event photo album here.