Improving management of conflict of interests

case FlandersBratislava, 8th June 2015

Warm up: some ethical propositions

red: ethically wrong/unacceptable orange: borderline, it depends

green: ethically correct/ acceptable

You regularly organize events and workshops for business people. The public service you work for has a limited budget and its use is strictly regulated.

Today a large ICT company offersto completely finance the next event, which you have to organize within a month. The ICT company only asks in return to let them distribute a brochure and put up a poster at the event to promote their company.

Recently your team is under a lot of pressure because you were not able to meet certain deadlines which caused your minister some embarrassment. Fortunately you can recruit an extra team member. At the end of the recruitment process there are two strong candidates. One candidate is a person with a disability. Neither you nor your team have any experience in working with disabled people. You have some doubts about the integration of this candidate in the team. On the other hand your organization has guidelines and recommendations to hire people from disadvantaged groups.

Your team starts a public procurement procedure for big printing jobs. The team is behind on schedule and does not have a lot of time to get the first printing job done and distributed. Two companies, with whom you have never worked before, send in an offer. Two days after the ultimate deadline for tendering, you receive an offer of a printer’s who you have often worked with and who has always delivered excellent service.

By chance you see your superior damaging another car while driving away from a car park. It is clear he has spotted you. After quickly assessing the damage, he looks around and just drives off. Next week your candidature for promotion will be decided on.

Your division is responsible for supervising the energy sector.

1) You are asked to be a board member of one of the major energy companies.

2) You have a portfolio of shares including shares of a number of energy companies.

The importance of a framework

• Flanders: staff regulations & code of conduct:

http://governance-flanders.be/integrity-0 Code of conduct: 6 principles – Loyalty and cooperation– Reliability: acting correctly and

consistently– Customer-orientation–Objectivity– Diligent management of resources– Right to speak and duty to speak

Principle of Objectivity

• Principle of equality• No discrimination• Conflict of interests• Revolving door constructions• Giving paid advice• Cumulation (combination activities)• Gifts and invitations• Foreknowledge • Interventions by members of parliament

Other types of conflicts of intrests?

- Can you think of other forms/types of conflicts of interests?- How to deal with such cases?

(use of analysis framework for integrity cases/dilemmas)

- How to detect risks & take appropriate measures? (risk analysis matrix)

Analysis integrity cases

• Case 1 ‘Recruitement Procedure’• Case 2 ‘Noble Wines’

-> who are stakeholders/ persons involved?-> what are their interests/ what values are at play?-> possible choices and alternatives-> what choice do you make and what values are decisive in that choice?

Instruments to deal with conflict of interests (Flanders)

• Prevention: – Mapping types of conflicts of interests: risk

analysis & taking appropriate measures (basis for integrity action plan) (quick scan ‘vulnerability matrix’)

– Ethical guidelines & clear definitions– Training e.g. ethics training, use of case

analysis framework, open communication

• Controls: internal audit, reports wrong doings, key role managers • Enforcement: sanctions

Questions, feedback, ideas….

Contactintegriteit@vlaanderen.be

www.bestuurszaken.be/integriteithttp://governance-flanders.be/integrity-0

kristien.verbraeken@kb.vlaanderen.beTel + 32 499 77 20 88

Twitter: @javamoka

LinkedIn: be.linkedin.com/in/kristienverbraeken