What are we talking about? Offering a definition of “Ethics”, “Corruption” & “Good Governance” 06 April 2010 Cornelia Abel, Programme Coordinator South East Europe

12/06/20162 Ethics… what‘s that again? „A theory or a system of moral values“ „A set of principles of right conduct“ „The study of the general nature of morals and of the specific moral choices to be made by a person; moral philosophy“ „The rules or standards governing the conduct of a person or the members of a profession: medical ethics“

12/06/20163 Anti-Corruption Ethics Definition: Based on core values, a set of standards for conduct in government, companies and society that guides decisions, choices and actions

12/06/20164 Business or Corporate Ethics Business Ethics = written and unwritten codes of principles and values that govern decisions and actions within a company. „In the most basic terms, a definition for business ethics boils down to knowing the difference between right and wrong and choosing to do what is right. The phrase 'business ethics' can be used to describe the actions of individuals within an organization, as well as the organization as a whole.“ [

12/06/20165 Business or Corporate Ethics Corporate ethics = the set of rules and policies implemented by corporations, mostly to regulate the conduct of their employees. Typically involves at least three general elements: 1)drafting a code of ethics 2)developing strategies to promote the contents of the codes of ethics (e.g. training, educational programmes) 3)development of a system to ensure compliance

12/06/20166 Good Governance  "governance" means: the process of decision- making and the process by which decisions are implemented (or not implemented). –corporate governance, –international governance, –national governance and –local governance

12/06/20167 Good Governance „Governance consists of the traditions and institutions by which authority in a country is exercised for the common good. This includes (i) the process by which those in authority are selected, monitored and replaced, (ii) the capacity of the government to effectively manage its resources and implement sound policies, and (iii) the respect of citizens and the state for the institutions that govern economic and social interactions among them.“ [

12/06/20168 Good Governance „Good governance refers to the management of government in a manner that is essentially free of abuse and corruption, and with due regard for the rule of law.“ [ IMF, 2007, Manual on Fiscal Transparency, IMF, Washington DC, Glossary]

12/06/20169 Good Governance [ UNESCAP – United Nations Economic and Social Commission for Asia and the Pacific]

12/06/ Good Governance  Participatory  Consensus oriented  Accountable  Transparent  Responsive  Effective and efficient  Equitable and inclusive  Follows the rule of law = informed & organised, direct or via legitimate intermediate institutions or representatives, incl. freedom of association and expression + organized civil society

12/06/ Good Governance  Participatory  Consensus oriented  Accountable  Transparent  Responsive  Effective and efficient  Equitable and inclusive  Follows the rule of law = requires mediation of different interests in society to reach broad consensus on what is in the best for the whole community and how it can be achieved. Understanding of historical, cultural and social context should lead to striving for sustainable human development

12/06/ Good Governance  Participatory  Consensus oriented  Accountable  Transparent  Responsive  Equitable and inclusive  Follows the rule of law = Key requirement! Governmental institutions, the private sector and civil society organizations must be accountable to the public and to their institutional stakeholders. Who is accountable to whom varies but in general an organization or an institution is accountable to those who are effected by its actions

12/06/ Good Governance  Participatory  Consensus oriented  Accountable  Transparent  Responsive  Effective and efficient  Equitable and inclusive  Follows the rule of law = decisions taken and their enforcement are done in a manner that follows rules and regulations. Information is freely available and directly accessible to those who will be affected by such decisions and their enforcement. Enough information is provided in easily understandable forms and media

12/06/ Good Governance  Participatory  Consensus oriented  Accountable  Transparent  Responsive  Effective and efficient  Equitable and inclusive  Follows the rule of law = serves the present and future needs within a reasonable timeframe

12/06/ Good Governance  Participatory  Consensus oriented  Accountable  Transparent  Responsive  Effective and efficient  Equitable and inclusive  Follows the rule of law = Processes and institutions are to produce results that meet the needs of society while making the best use of resources at their disposal, incl. the sustainable use of natural resources and the protection of the environment

12/06/ Good Governance  Participatory  Consensus oriented  Accountable  Transparent  Responsive  Effective and efficient  Equitable and inclusive  Follows the rule of law = The views of all groups in society, incl. minorities are taken into account, the voices of the most vulnerable in society are heard, and all groups, but particularly the most vulnerable, have opportunities to improve or maintain their well being

12/06/ Good Governance  Participatory  Consensus oriented  Accountable  Transparent  Responsive  Effective and efficient  Equitable and inclusive  Follows the rule of law = fair legal frameworks, impartially enforced, as well as full protection of Human Rights, which implies an independent judicary and incorruptible law enforcement

12/06/ Worldwide Governance Indicators (WGI) Dimensions of Governance:  Voice and Accountability  Political Stability and Absence of Violence  Government Effectiveness  Regulatory Quality  Rule of Law  Control of Corruption [ ]

12/06/ Corruption – various definitions  USAID (1999): The abuse of positions of public responsibility for private gain.  Brinkerhoff/Goldsmith 2002: A special form of rent seeking by corrupt means, i.e. through means outside of legal statute or clear community standards  Macmillan Dictionary: dishonest or illegal behavior by officials or people in positions of power, especially when they accept money in exchange for doing things for someone

12/06/ Transparency International: Corruption is… The abuse of entrusted power for private gain.

12/06/ Types of Corruption  Grand Corruption = Acts committed at a high level of government, that distort politics or a central function of the state, enabling leaders to benefit at the expense of the public good vs.  Petty Corruption = Everyday abuse of entrusted power by low- and mid-level public officials in their interactions with ordinary citizens, often occuring when those are trying to access basic goods or services, e.g. at hospitals, schools, police departments or other agencies

12/06/ Types of Corruption  Political corruption (abuse of elected positions) vs.  Bureaucratic or administrative corruption (abuse of professional/apointed positions)  Electoral Corruption Abuses include: Bribery and extortion (payment for favorable government decisions) Nepotism and favoritism (giving preferences to unqualified family members or associates for public jobs or contracts), Embezzlement (theft of state funds) = unfair means to obtain or hold onto government offices, e.g. through vote buying, voter indimidation, ballot stuffing

Thank you. Cornelia Abel,

12/06/ TI’s vision TI’s vision is a world in which government, politics, business, civil society and the daily lives of people are free of corruption

12/06/ S O C I E T Y’ S V A L U E S P U B L I C A W A R E N E S S MEDIA CIVIL SOCIETY PRIVATE SECTOR INTERNATIONAL ACTORS The Concept of a National Integrity System SUSTAIN- ABLE DEVELOP- MENT QUALITY OF LIFE RULE OF LAW AUDITOR GENERAL OMBUDSMAN WATCHDOG AGENCIES PUBLIC SERVICE LEGISLATURE EXECUTIVE JUDICIARY N A T I O N A L I N T E G R I T Y

12/06/ PRIVATE S O C I E T Y’ S V A L U E S P U B L I C A W A R E N E S S QUALITY OF LIFE RULE OF LAW AUDITOR GENERAL OMBUDSMAN WATCHDOG AGENCIES PUBLIC SERVICE LEGISLATURE EXECUTIVE JUDICIARY N A T I O N A L I N T E G R I T Y CIVIL SECTOR SOCIETY INTERNATION L ACTORS MEDIA SUSTAIN- ABLE DEVELOP- MENT The Concept of a National Integrity System