Shiva Hari Adhikari Nepal Administrative Staff College Building Integrity - II Shiva Hari Adhikari Nepal Administrative Staff College

Discussion Is there any kind of systematic advantage to ethical behavior or any kind of systematic disadvantage to unethical behavior in our workplaces? SHA_NASC 19/04/2019

Study findings Source: CIAA Annual Reports.

Officer, Non-officer and Corruption complaints Types of Corruption Complain Position Total (N) Officer (%), N = 803 Non-Officer (%), N = 1213 Fake Document Related 11.0 89.0 100.0 (630) Illegal Benefits and Illicit Earnings 66.4 33.6 100.0 (286) Bribery 42.7 57.3 100.0 (260) Fraud 56.0 44.0 100.0 (50) Misuse of Public Property 50.1 49.9 100.0 (485) Procurement and Construction 53.1 46.9 100.0 (305) 39.8 60.2 100.0 (2016) Chi Square 353.835***   Likelihood Ratio 393.003*** Phi and Cramer's V 0.419*** Note: Table generated based on the cases published in CIAA annual reports (2006 - 2015).

Table: Statistical analysis of the gap between law and practice regarding integrity in public sector (1 = very weak and 5 = very strong) Minimum Average Value Maximum Average Value Mean Std. Deviation Integrity Provisions 1 4 2.69 .69 Integrity Practice 3.86 2.46 .65 Total (N = 54)   Source: Field Survey, 2017

Foundation: Integrity and Ethics How supportive are the political institutions? How are the relationships among social groups and between social groups and the political system in the country? How is the socio-economic situation of the country? How supportive are the prevailing ethics, norms and values in society?

Prisoner’s Dilemma Two thieves arrested for a crime promise not to betray each other. But the police put them into separate rooms and tell each thief the same thing as follows: If you confess and your partner keeps silent, you go free and he gets 5 years in prison; if he confesses and you keep silent, he goes free and you get 5 years in prison. If you both confess, then you both get 3 years in prison. If you both keep silent, then we will give you each 1 year in prison on a lesser charge”. SHA_NASC 19/04/2019

Prisoner’s Dilemma: Case “Banker’s Association (BA) tried to fix the interest rate for all the 28 commercial banks” “NIC Asia Bank broke the term of gentleman’s agreement and hiked its interest rate at 10% for savings and 12% at fixed deposits” “The BA members decided not to conduct any kind of inter-banking transactions with NIC Asia” “BA and NIC Asia Bank have reached an agreement to lower interest rates on fixed deposits” SHA_NASC 19/04/2019

Importance of Integrity More integrity in delivering basic services could enhance the quality of life. KATHMANDU: Around 430,000 children in the country are malnourished due to lack of nourishment and of them 91,000 are suffering from rapid malnutrition. SHA_NASC 19/04/2019

Importance of Integrity More integrity in health sector could save the sick Dalit girl’s life. SHA_NASC 19/04/2019

Importance of Integrity More integrity in education sector could improve children’s education. SHA_NASC 19/04/2019

Importance of Integrity More integrity in courts could save women’s freedom. SHA_NASC 19/04/2019

Importance of Integrity More integrity could make building/ structure safe. SHA_NASC 19/04/2019

How much important is integrity in your workplace? Why? SHA_NASC 19/04/2019

EPF’s Vision and Mission Through leadership role as the national social security provider, establish the fund as a social security organization of international standards) Mission … establish the fund as Nepal's most reputed social security organization; … develop the fund as a social security organization of international standards; …''A happy big family of satisfied members'‘; and … contribute in the country’s economic development.

Importance of Public Sector Integrity and Ethics Corner stone of good governance Rising expectations from ordinary citizens, media and civil society which is the result of media attention and public awareness Integrity, an essential aspect of democratic institution SHA_NASC 19/04/2019

Drivers of Public Sector Integrity and Ethics At society level At individual level Interest and capabilities At profession level At organization level SHA_NASC 19/04/2019

Public Sector Ethics: Critical Aspects Publicness in public service (rival & excludable) Culture of integrity in public service Motivated primarily by money or professional fulfilment Sense of ownership: attachment, team sprit, proudness, …

Public Sector Ethics: Critical Aspects OECD Framework (Toolkit of Integrity) Healthy governance Effective prevention Sharp detection Robust examination and recovery SHA_NASC 19/04/2019

Issues in Public Sector Ethics and Integrity Confusion over what is ethical: multiple standards exist The “Boss” bribing the subordinates to get the job done in the organization or vice versa. Mostly protectors are the violators Ethical person becoming odd or unpopular member in the team SHA_NASC 19/04/2019

Issues in Public Sector Ethics and Integrity Difficult to work honestly or ethically – more difficult to make people believing that one is ethical! Unethical behaviors deeply rooted in the work culture / myths being valued or re-enforced SHA_NASC 19/04/2019

Options A businessman’s approach A market or an economist’s approach A lawyer’s approach Toughening laws & legislations A businessman’s approach Offering incentives to officials to disengage from corruption (buy out corruption). A market or an economist’s approach Introduce or increase competition An institutional approach Genuine political/leadership commitment

Promoting Integrity and Ethics Identify and name an integrity problem Knowledge of the legislation, codes, standards, related to the problem Identify the solution

Public Sector Ethics: Lessons from CPI High Ranked Countries Administrative culture: rules are brief, clear and strict few level of bureaucracy autonomy on the local level collective decision system job security (a public official's bread may be thin but at least it is long) presence of women in decision making post SHA_NASC 19/04/2019

Public Sector Ethics: Lessons from CPI High Ranked Countries Transparency of the work Supervision of decision Law enforcement SHA_NASC 19/04/2019