MINIMUM MUNICIPAL COMPETENCY PROGRAMME Dr Zwelinzima Ndevu

Apply the Principles of Ethics in a Municipal Environment Unit Standard 116343 Apply the Principles of Ethics in a Municipal Environment

US116343- Assessment Plan 1 Individual assessment Open book case study based controlled class test 19th October 2018 2-hour paper consisting of a case study with insight questions relating to all outcomes: It will be expected of the learner to apply the theoretical models/tools to the questions. OUTCOME 1: Demonstrate knowledge and insight into existing legislation, regulations and codes affecting activities of municipalities in South Africa OUTCOME 2: Apply the principles of ethics and professionalism to a municipal code of conduct Assessment Criteria OUTCOME 3: Develop an implementation plan to achieve compliance with an established code of ethics 2 Individual work-based assignment 19th November 2018 For detailed instructions consult the assessment plan attached on the website.

Orientation Specific Outcomes Demonstrate knowledge and insight into existing legislation, regulations and codes affecting activities of municipalities in South Africa … Apply the principles of ethics and professionalism to a municipal code of conduct … Develop an implementation plan to achieve compliance with an established code of ethics … 

Ethics in Municipal Finance– setting the context and challenge Round-table interactive workshop: Individually reflect upon your (1) personal (in your community) and (2) professional experience (at your office/department) with regards to Ethics in municipal environment In a round-table discussion, share your views with the group

Ethics and Ethical Behaviour in a Municipal Government

Ethics – a definition The principles (values) … what is right, what is good and what is proper The standards which guide us in achieving what is right, good and proper The sustained efforts … to employ those sound principles and standards - which best serve the public and their interests

What is right is right, even if no one is doing it What is wrong is wrong, even if everyone is doing it

Values Abstract ideals that shape an individual’s thinking and behavior – a moral compass Instrumental values – certain way of behaving is appropriate in all situations – “means”. Terminal values – enduring belief in the attainment of a certain end state – “ends”.

A moral compass These abstract ideals can result from Religion Philosophy Family teachings

Instrumental values As the means to an end they become the ingrained ways of behavior: Rituals Politesse Good habits

Terminal values With the end always in sight: Heaven Respect Financial Success Personal Independence Power

Values – Individual You’re an institution Failure or success depends on your morals and values If you cannot manage the private you cannot manage the public Integrity matters most when you are alone Success on the outside begins within Laziness kills potential

Behaviour – lack of diligence and probity

Laziness Carelessness Waste of the organisation’s resources Abuse of the organisation’s assets Disrespect for the public and their interests

Behaviour – dishonesty for purposes of self interest

Corruption, theft, graft and fraud Using insider knowledge and influence Self-dealing Making personal use of government property Unauthorised outside employment

Tea Break 

A few ways to fix a government (video) https://ted.com/talks/charity_wayua_a_few_ways_to_fix_an_ailing_government?utm_source=tedcomshare&utm_medium=email&utm_campaign=tedspread--a

Professionalism and ethics in the workplace Criteria Characteristics Competencies Expectations

Criteria Training Intellectualism Autonomy Judgement Independence Service Pride Dedication

High degree of generalized & system knowledge theoretical base Characteristics Experts High degree of generalized & system knowledge theoretical base Public/ community interest oriented High degree of self control Reward for work achievement Self and organisational evaluation

Competencies Mastery of theoretical knowledge Capacity to solve problems Application of theoretical knowledge to practice Ability to create knowledge as well as possess it Enthusiasm and commitment to public interest Commitment to continuous learning about the organisation

Establish a relationship with the public Have a lack of self interest Expectations Establish a relationship with the public Have a lack of self interest Be involved in all aspects of their profession Prioritise what the profession does and is

Relationship between ethical individuals and ethical organisations

UNETHICAL BEHAVIOUR IN THE PUBLIC ORGANISATION

Common Causes of Unethical Behavior Pressure Fear Greed Convenience

Class Activity Break into smaller groups of 2-3 people and work on one of the following situations: Going to work when you’re obviously sick and possibly contagious. Telling an insecure co-worker (or subordinate) their work is good when it is not. Voicing support for a decision you don’t really believe in because everyone else is in favour of it and there is no more time for discussion. Ignoring a subordinate’s chronic tardiness because the employee has a troublesome family life and you figure they’ve got enough to deal with.

“Public Service is public trust “Public Service is public trust. Citizens expect public servants to serve the public interest with fairness and to manage public resources properly on a daily basis. Fair and reliable public services inspire public trust and create a favourable environment. Public service ethics are a prerequisite to, and underpin public trust and are a keystone of good governance.” OECD “ … trustworthiness, responsibility, respect, compassion, fairness and citizenship … ” IGE

LEGISLATION, REGULATION AND CODES APPLICABLE TO MUNICIPALITIES IN SOUTH AFRICA

“The ultimate answer to ethical problems in government is honest people in a good ethical environment. No web of statute or regulation, however intricately conceived, can hope to deal with the myriad of possible challenges to a person’s integrity or his devotion to the public interest.” President John F. Kennedy - 1961

The Constitution Act 108 of 1996 Rights & Obligations The Bill of Rights The Chapters and the Sections ……

And all the legislation …

And Codes of Conduct …

Class exercise Identify a professional field within municipal environment Identify three ethical concerns (are the issues becoming more of a problem or getting worse) Identify relevant stakeholders in the conflict (what values are in the conflict for each stakeholder) How to handle the issue and why?

Lunch Break 

Conflict of Interest Disclosure … Recusal … ?

King II – Triple Bottom Line Governance Economic Environmental Social

King Reports 1994 – King I “ … integrated approach to the good governance in the interests of a wide range of stakeholders …” 2002 – King II “ … a move to the triple bottom line, embracing the economic, environmental and social aspects …” 2009 – King III “ … core philosophy revolving around leadership, sustainability and corporate citizenship …”

Concepts Accountability Responsibility Stakeholders Role-players Corporate Governance Vision Banking Charter – increased focus on sustainability issues, such as access to finance, empowerment and social responsibility. Marketing- sustainability is also a corporate identity issue – can improve reputation. Social responsibility – such as foundation activities and good treatment of employees improves reputation, gives back to community, and makes firm an employer of choice. Good Business sense- improved risk assessment eliminates debt risks, can save costs on facilities by employing environmentally beneficial technologies.

Batho Pele Consultation Service standards Access Courtesy Information Openness and transparency Redress Value for money

Codes of conduct and ethics in the workplace Enron Group exercise

Good governance includes ten principles as requisites of ethical local governance: These principles are: • Participation; • Rule of Law; • Transparency; • Equality; • Responsiveness; • Vision; • Accountability; • Oversight; • Efficiency and Effectiveness; and • Professionalism.

Codes of conduct and ethics in the workplace Learning activity

Applying principles of ethics and professionalism in the municipal environment

International principles … Principles of personal ethics Personal ethics might also be called morality, since these reflect general expectations of any person in any society acting in any capacity. These are the principles we try to instill in our children, and expect of one another without needing to articulate the expectation or formalize it in any way.

International principles … Principles of professional ethics Individuals acting in a professional capacity take on an additional burden of ethical responsibility. For example, professional associations have codes of ethics that prescribe ethical behaviour within the context of a professional practice. These written codes provide rules of conduct and standards of behaviour based on the principles of professional ethics.

International principles … Principles of global ethics Global ethics are the most controversial of the three categories, and the least understood. They are open to interpretation as to how they should or should not be applied. An added measure of accountability is placed on globally influential enterprises such as governments and transnational operations. 63

Public Sector Code of Conduct (66) Codes of Conduct … Public Sector Code of Conduct (66) Code of Conduct for Municipal Staff Members (68) 66

Application of principles to Codes of Conduct in the South African public sector 66

An ethical dilemma is defined as a situation that often involves an apparent conflict between moral imperatives in the municipality, in which to obey one would result in transgressing another. 66

Ethical Dilemmas It’s right to communicate information that might help other people…But it’s also right to respect the confidentiality of information if you have agreed to do so. It’s right to follow through on commitments you’ve made…But it’s also right to address a higher priority task that suddenly needs to be completed

Dilemmas … relationship with councillors relationship with the public relationship among employees performance of duties personal conduct - private interests 68+

Relationship with Councillors The principles in this section concerns loyalty to the country, the public interest, the law and to the established accountability arrangements

Relationship with the Public The principles in this section concerns recognition of the public’s rights, and the obligation to treat the public in a respectful, unbiased, efficient way

Relationship among Employees The principles in this section concern the need for cooperation between all officials, recognition of authority, avoidance of nepotism, avoidance of any form of discrimination and use of appropriate procedures when necessary.

Performance of duties The principles in this section concern professionalism, competence, punctuality, meeting of performance objectives, honesty, accountability, confidentiality, cooperativeness and obligations to report instances of corruption, maladministration etc.

Personal conduct and Private interests The principles in this section concern the official’s dress code, behaviour, caution about accepting gifts, outside work, confidentiality, and receiving or seeking personal benefit in any way.

Tea Break 

Ethical Dilemmas: steps 1 - 5 Ten-step method for resolving ethical dilemmas (adapted from Wallace & Pekel) What are the known facts in the situation? Who are the key stakeholders, what do they value and what are their desired outcomes? What are the underlying drivers causing the situation? In priority order what ethical principles or operating values do you think should be upheld in this situation? Who should have input to, or be involved in, making this decision? 78

Ethical Dilemmas: steps 6 - 10 List any alternative and action plans that would: prevent or minimise harm to stakeholders uphold the priority values for this situation be a good solution to the situation Build a worse-case scenario for your preferred alternative to see how it affects the stakeholders. Rethink and revise your preferred alternative if necessary. Add a preventative ethics component to your action plan that deals with the underlying drivers causing the situation listed in Step 3. Evaluate your chosen decision and action plan against any relevant checklist or code of conduct. Decide and build an action plan, and implement and monitor it.

Ethical Dilemmas – the 12 questions Have you defined the problem accurately? How would you define the problem if you stood on the other side of the fence? How did this situation occur in the first place? To whom and what do you give your loyalties as a person and as a member of the municipality? What is your intention in making this decision? How does this intention compare with the likely results? Whom could your decision or action injure? Can you engage the affected parties in a discussion of the problem before you make your decision? Are you confident that your position will be as valid over a long period of time as it seems now? Could you disclose without qualm your decision or action to your boss, your municipal manager, the council, your family, or society as a whole? What is the symbolic potential of your action if understood? If misunderstood? Under what circumstances would you allow exceptions to your stand? 79

Three examples – individual assignment Ethical dilemmas Three examples – individual assignment 76

Common forms of ethical misconduct Misrepresenting hours worked Employees lying to supervisors Management lying to employees, customers, vendors or the public Misuse of organizational assets Lying on reports/falsifying records Sexual harassment Stealing/theft Accepting or giving bribes or kickbacks Withholding needed information from employees, customers, vendors or public

Dealing with ethical misconduct in the workplace 80

Forms of warning Verbal warning Written warning Reprimand Suspension Termination Disciplinary steps (82) Dealing with fraud, theft or corruption in the workplace (82) 81

Resolving ethical dilemmas in the workplace Learning activity 87

Compliance with an established code of ethics 90

Roles and responsibilities in an ethics management programme Municipal Manager support An Ethics Committee within council? Ethics Officer? Ombudsman? One person responsible! The guidelines … (96) 95

Hoffman’s Ethical Pyramid 99

Initial tasks of an ethics management programme Purpose … Guidelines … Identify and review values Review which values support the ideal Identify behaviours Identify core values - the top five to ten Compose a code of ethics Include wording - all employees are expected to conform Obtain review from key members of the municipality. Announce and distribute the new code of ethics Update the code at least once a year. 100

Implementing the code of ethics … Internal initiatives Communicating internally External initiatives External communication 107

Whistleblowers’ Charter 112

“Whistleblower’s” Reluctance Didn’t believe action would be taken. Feared retaliation from mgmt. Didn’t trust confidentiality. Feared not being a team player. Feared retaliation from co-workers. Didn’t know who to contact. Nobody cares, why should I?

Appendices A - Code of Conduct for Councillors B – Code of Conduct for Municipal Staff Members C – South African Public Service Code of Conduct D – Prevention and Combatting of Corrupt Activities Act, 2003 E – Sample Ethics Programme for a municipality 125+

The exam tomorrow …… 

SCHOOL OF PUBLIC LEADERSHIP Thank you ……