Some questionable customs?

9  February 2011

Last month the media reported how senior Turkish customs officers were being prosecuted for corrupt use of powers.  This week Romania’s customs chief and a number of his staff, have been charged with corruption. The chief apparently accepting a EUR 400 000 bribe in exchange for appointing a  senior official, to a position giving him the opportunity to further self interest.  
 
 In both countries, a widespread problem is that officials  allegedly take bribes to facilitate illicit cigarette shipments.  The rate in Romania  is a euro for a packet of 200 cigarettes.  Officials are said to make up to 2,700 euros per shift.    In Bulgaria there is a lack of confidence that Customs have sufficient integrity to improve a situation where the country has  the third highest rate of tobacco smuggling in Europe – after Latvia and Lithuania. Bulgaria and Romania are being blocked from joining the Schengen passport-free travel zone, until France and Germany have more confidence in the control of  corruption and organised crime.  
 
The 2010 UMR Mood of the Nation survey  indicated that 71% of New Zealanders believe our  Customs Service does an “excellent or good” job.  NZ Fire Service, NZ Police and the Department of Conservation rated better.

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February 14, 2011

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Ethics ambassadors?

8 February 2011

What is the best way to encourage ethical behaviour in the workplace? A common finding seems to be that good behaviour “rubs off”. The example of managers sets the tone, and we then tend to behave in ways very simliar to colleagues we work closely with. That’s why State Services agencies are expected to promote the “trust elements”, including having standards, promoting them, integrating them into the way we work, with an expectation that managers model those standards.

The practice in the State Services is that managers are responsible for providing integrity leadership. Managing standards is a core leadership role and should be a continuing part of staff supervision. New Zealand hasn’t replicated the US practice where there is a mandated regime of ethics officers. One downside for us is that promoting standards can lose priority.

The UK Institute of Busienss Ethics believes that ethics ambassadors may be the way forward. It recommends that ethics should be championed by local, accessible staff members, through an ethics ambassador network. The belief is that this can create a culture of openness. Ethical dilemmas disclosed and discussed, will go some way to combatting bribery and corruption.

http://www.trust.org/trustlaw/blogs/anti-corruption-views/combating-corruption-with-ethics-ambassadors/

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February 11, 2011

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Speaking your mind

7 February 2011

The standards of integrity and conduct for the State Services require that “we avoid any activities, work or non-work, that may harm the reputation of our organisation or of the State Services”. This reflects our duties of trust and confidence to our organisation. What we do in our personal lives is of no concern to our employer unless it interferes with our work performance or reflects badly on the integrity or standing of the State Services.

The policies of most agencies preclude employees from taking part in public criticism of them. An interesting case relating to a US Federal Government employee challenges this established pattern.

A lecturer at the US Naval Academy missed out on a pay increase because he wrote a media article about positive discrimination in the Academy. His claim that this was a breach of his right to free speech led to a settlement and a statement “no federal employee should fear that he will be penalized on the job for expressing an opinion on controversial matters of public concern.”

In New Zealand, the sitution is may be more constrained. State Services Commission guidance about freedom of speech includes a balancing duty to an employing agency;

“Freedom of expression
State servants have the same rights of political expression outside the workplace as ordinary members of the public.

Outside of work will usually include when on lunch and other breaks and for those with flexible working arrangements, at times when they are able to choose to be absent from work.

State servants, like any other employees, should not act in such a way that would bring their employers into disrepute.”

http://www.osc.gov/documents/press/2011/pr11_03.pdf

http://www.ssc.govt.nz/display/document.asp?DocID=7663

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February 11, 2011

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Shortage of ethics in business?

4 February 2011

“Look before you leap” is a survey published by Deloittes in the US. It indicates that almost two thirds of North American companies have renegotiated or cancelled potential mergers or acquisitions with offshore companies over the last three years because of corrupt practices uncovered during due diligence processes. The survey reports that … “Increased governmental crackdowns on corporate corruption and foreign bribery issues are dramatically changing the playing field for potential transactions. As such, companies are either re-evaluating the costs and benefits of these deals, or are outright scuttling those that present unacceptably high risks.” As the Transparency International Corruption Perceptions Index shows that the majority of public administrations around the world do not rate a 5 out of 10 rating, the extent of corruption in the business sector is unsurprising. It is heartening that US businesses are reluctant to buy into companies with shonky practices.

http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Content/Articles/Financial%20Advisory%20Services/us_fas_Look%20Before%20You%20Leap_012711.pdf

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February 11, 2011

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Lobbying, Canada style

2 February 2011

Lobbying is very big business in many jurisdictions. The corrosive effects mobilise numerous NGOs. In the US a blog writer at the Sunlight Foundation has looked to Canada as an examplar of the transparency needed to minimise corrupting influences:

“..a robust and effective Canadian law shines bright light on the details of lobbying meetings. … Each month in Canada, details (dates, participants and topics) of lobbyists’ meetings with Members of Parliament, Senators, senior government officials and political aides are reported and posted online. … Canadian law makes the people doing the lobbying, not the officials being lobbied, responsible for reporting the meetings. … When employees of a company lobby government officials, the corporate CEO is the one who must report on the meetings. It is a duty that the CEO cannot delegate to underlings. A corporate director who lobbies elected politicians or senior officials must file a separate report for each and every meeting. Again, only the director can make the disclosure. … Canada has assigned the job of overseeing compliance to an independent regulator, the Commissioner of Lobbying. … Everyone has the democratic right to try to influence law makers – what is not a democratic right is to influence law makers in secret.” 

  

http://sunlightfoundation.com/blog/

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February 11, 2011

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Transparency is part of leadership modelling

1 February 2011

Traditionally our society has looked to business leaders, lawyers and bankers as exemplars of professionalism.  These groups are well represented when appointments are made to public bodies and when national honours are awarded.  Implicit is their commitment to the well being of the community and their ethical worthiness.  Many are in leadership roles.  Yet these are the professions that now rate as poorly as politicians in the public perception. In New Zealand, public servants have greater occupational respect, according to the UMR Mood of the Nation survey.

The Commentary in Ethics Newsline this week draws an interesting relationship between a widespread unwillingness of people to be led, and the nature of leadership training.  This training too often cultivates excessive individualism. It undermines a sense of community which is the essence of ethics. “Ethics after all, is not egocentric but sociocentric. It arises more easily in those who think about others than in those who brood about their own personal goals. Identify yourself as a leader, and it is tempting to claim exceptions that don’t apply to others – to put yourself above the law…”

This concern is addressed in the “6 trust elements” by which State Services agencies are expected to entrench standards of integrity and conduct. A paramount requirement is that managers model the standards – that they walk the talk.  Yesterday, Public Service departments and statutory Crown entities were required to publish details of their chief executives’ expenditure on travel and hospitality, and the value of gifts and benefits received.  The State Services Commission has set a common format to be followed by agencies in promoting this transparency and demonstrating that the most senior managers are no less accountable than their staff.

Compliance at this stage is patchy, with fewer than 10% of agencies having met the specified publication date.  More practice will be necessary before agencies emulate Canada’s coordinated and disciplined disclosure process.

www.globalethics.org/newsline/2011/01/31/the-followership-vacuum/

www.umr.co.nz/Reports/UMR%20Mood%20of%20the%20Nation_2010.pdf

www.data.govt.nz

www.ssc.govt.nz/display/document.asp?DocID=7975

http://www.tbs-sct.gc.ca/pd-dp/gr-rg/index-eng.asp

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February 2, 2011

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Trust barometer measures changing ethical climate

31 January 2011

The 2011 Edelman Trust Barometer was published last month. Begun in 2001, this is an annual measure of public trust in institutions across 20 countries (New Zealand does not feature).  Findings are that trust in business and government is markedly resilient.  However the the greatest public confidence is in NGOs.

Trust in US business dropped 8 points since 2010 placing it within five points of Russia (rated as the poorest of surveyed countries.)

Although in past years confidence in business and government tended to move in opposition, this year trends are more general. An exception is the growth in trust in the German business sector.

The Edelman Barometer has a different scope to the Transparency International Corruption Barometer, the latest of which was published on 9 December 2010.  The survey included New Zealand for the first time. In New Zealand, 72% of people surveyed felt there had been an increase in the level of corruption.  The increase in Australia was 54%.

http://www.scribd.com/doc/47515988/2011-Edelman-Trust-Barometer-Executive-Summary

http://transparency.org/policy_research/surveys_indices/gcb/2010/results

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February 2, 2011

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Older and wiser

21 January 2011

The State Services standards of integrity and conduct include the obligation “to work to the best of our abilities”.  Specifying “smart” measures to assess compliance would be a challenge.  In “Understanding the code –guidance for State Servants”, the State Services Commission explanation includes the following:

“Working to the best of our abilities reflects our spirit of service to the community.

We need to demonstrate a strong sense of personal responsibility and commitment to the public good. We must be apolitical, responsive, objective and accountable in our work, but also try to improve the quality and quantity of the contribution we make; working with focus, urgency and impact….”

New Zealand no longer has a statutory retirement age. State servants should they wish can work as long as they choose.  It is interesting to speculate what working to the best of our abilities means when capacity diminishes.

The Propublica website has an interesting commentary on the contribution which US Federal court judges make to the law.  These judges are not required to retire.  When life tenure was prescribed in the 18th century American males lived to about 40.  Now 12% of the Federal judges are over 80 (and one sitting judge is 100!)  Their retirement pay is the same as their salary. Most prefer to keep working. The article explores the implications of age.  Historically the purpose of the public service pension schemes was to enable appointees to retire and make space for younger blood.

Perhaps officials without adequate pension arrangements will choose to emulate federal Court judges?

http://www.propublica.org/article/life-tenure-for-federal-judges-raises-issues-of-senility-dementia

http://www.ssc.govt.nz/display/document.asp?docid=7902&pageno=5#P277_25160

 

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January 22, 2011

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Politics pays in some places!

Global Financial Integrity, an anti corruption NGO  this week published its research about the illicit flows of assets from developing countries. In the period between 2000 and 2008 the assessed loss to developing economies is about US$ 6.5 trillion.  Approximately US$ 1.26 trillion was moved unlawfully in 2008 alone. The estimate is that movements in 2009 were lower, reflecting not improved attitudes or enforcement, but the effects of the financial crisis.

The largest flows were out of Asia. China is the most affected country.

The wife of the deposed President of Tunisia is reported to have left for Saudi Arabia this week with 1.5 tonnes of gold taken from the national treasury.  Worth US$35 million, this is petty cash compared with the US$3.5 billion the President and has family are already said to have banked in France.  And Tunisia, ranked as the 54rd least corrupt public administration by Transparency International in 2010 is rated less corrupt than all other North African states!

http://iff-update.gfip.org/

http://www.dailymail.co.uk/news/article-1347938/Tunisian-presidents-wife-Leila-Trabelsi-fled-riots-35m-gold-bars.html

 

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January 21, 2011

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2010 trust barometer

19 January 2011

The Edelman “trustbarometer” published over the festive season is an annual survey which has measured public trust in business and government in each of the last ten years. Based on widespread polling in numerous jurisidictions the compilers of the barometer comment that “Trust has emerged as a new line of business – one to be developed and delivered” . It is eually important in the commercial and government sectors.

The findings for 2010 were that trust in government shows a modest increase – rising substantially in USA and France but declining dramatically in Russia. What is interesting is that the only institution to lose trust around the globe is media.

This is replicated to some degree in New Zealand in the UMR 2010 Mood of the Nation survey. The media is rated as the institution in which respondents had the least confidence. On a day when there has been media focus on a review of measures within the NZ Police to strengthen culture, and media criticism that insufficient action is being taken, it is relevant that the UMR results show 67% of New Zealanders have a great deal or a lot of confidence in the Police compared with only 20% in the media.

 http://www.edelman.com/trust/2010/docs/2010_Trust_Barometer_Executive_Summary.pdf

http://www.umr.co.nz/Reports/UMR%20Mood%20of%20the%20Nation_2010.pdf

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January 19, 2011

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