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Ethics in a Diverse World

Ethics in a Diverse World. Lynda Allair, CPPO CPPC Forum 2007 October 3, 2007. Ethics is the discipline of dealing with what is good or bad, right or wrong, with moral duty and obligation – the principles that define behavior as right, good and proper. Ethics vs Values.

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Ethics in a Diverse World

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  1. Ethics in a Diverse World Lynda Allair, CPPO CPPC Forum 2007 October 3, 2007

  2. Ethics is the discipline of dealing with what is good or bad, right or wrong, with moral duty and obligation – the principles that define behavior as right, good and proper.

  3. Ethics vs Values • Don’t confuse “ethics” and “values”. • Values are core beliefs that guide and motivate attitudes and actions(something (as a principle or quality) which are intrinsically desirable, i.e. family values).

  4. WHY BE ETHICAL? • Inner benefit: Virtue is its own reward • Personal advantage • Approval of those around you • Religious satisfaction • Habit

  5. Six Pillars of Character • Trustworthiness • Respect • Responsibility • Fairness • Caring • Citizenship From “Making Ethical Decisions”, by Michael Josephson, 2002.

  6. Pillar 1, Trustworthiness Trustworthiness includes such qualities as: • Honesty • Integrity • Reliability • Loyalty

  7. Pillar 2 - Respect Follow the golden rule – Do unto others as you would have them do unto you.

  8. Pillar 3 - Responsibility Being accountable for what we do and who we are. It also means recognizing that our actions matter and we are (at least) morally on the hook for the consequences.

  9. Pillar 4 - Fairness “Fairness involves equality, impartiality, openness, and due process.” - Josephson It is the policy of the ________ to instill public confidence through ethical and fair dealing, honesty, and good faith….allow impartial and open competition, protecting both the integrity of the process and the competition.

  10. Pillar 5 - Caring Caring is the heart of ethics, and ethical decision-making, because ethics is ultimately about good relations with other people.

  11. Pillar 6 - Citizenship …includes civic virtues and duties that prescribe how we ought to behave as part of a community.

  12. This is the only way we see ethics!

  13. Factors that Contribute to Unethical Behavior • Fear of Retribution • Pressure to Perform • Corporate Quotas • Aggressive People • Misguided Motives • Faltering Economy

  14. Public Service Values Critical to developing and maintaining the publictrust are: • Respectability • Accountability • Fair Play • Using Good Judgment

  15. Who is a Public Official? "Public official means any person who is serving the __________ or any of its political subdivisions or any other public body of the ______ as an officer, employee, agent or otherwise, and irrespective of whether the person is compensated for such services.”

  16. Procurement Don’ts • Give some bidders additional/advance information; • Let suppliers write agency’s specifications; • Prohibit access to a bid document if a bidder asks for it during the competitive bidding period; • Let bidders conduct agency’s technical evaluation; • Let bidders change their prices after the closing date;

  17. Procurement Don’ts • Communicate other bidder’s offerings before the closing date and time. • Negotiate price and terms with bidders in an unacceptable manner; • State displeasure with a bidder; or • State displeasure with a product.

  18. Procurement Do’s • Write functional specifications / use alternate brands; • Include all product and contractor requirements in the bid document; • Include terms and conditions; • Clearly state the method of award, and do not change it after bid closing; • All changes to the bid document or material clarification during the bidding period are done by written addendum; • Respond to all requests for information and changes fairly and promptly.

  19. High Risk Areas to Breach Ethics • Conflict of Interest • Kickbacks or Bribes • Circumventing Purchasing Authority • Back Door Selling • Employment

  20. Handling Conflicts of Interest Theremust be a written policy/process for handling any actual or potential conflict of interest which may arise. Clearly state who will make final determination.

  21. Kickback and Bribes • More for me • And more for me

  22. Circumventing Purchasing Authority • Restrictive Specifications • Emergency Procedures • Fragmenting Orders • Use Price Agreement Pricing as “Price to Beat”

  23. Back Door Selling • Supplier offers products not on contract • Supplier without a contract offers to beat contract price • Include additional “bonus” item(s) as an incentive

  24. Employment • Offering • Hiring

  25. Relationship Management • Supplier (vendor) resources –Agency website, Vendor Guide, etc. • Training – Vendor and Staff: what is not acceptable, and what to do if it occurs • Cultural differences – do you know if they exist and what they are

  26. Suppliers Writing Specifications? That could never happen. Could it?

  27. Suppliers Requesting Information • Suppliers to agency staff (other than purchasing – especially C-suite) • Suppliers to friends or family within agency • Suppliers (vendors) to past associates

  28. Pre-Emptive What can we do to prevent ethics issues? • Agency staff • Suppliers

  29. Examples • Training or Orientation Sessions • Web page – Corporate Policy section • Supplier Instructions • Seasonal or Procurement Specific Letter

  30. Know Your Rules on Ethics • Laws • Policies (Code of Conduct) • Procedures

  31. Special Programs • Specific Agency Programs • Hotline for Waste & Abuse

  32. Ethics Questions • Is it legal? Will I be violating law or policy? • Is it balanced? Is it fair to all concerned in short as well as long term? • Does it promote win-win relationships?

  33. Ethics Questions • How will I feel about myself? Will I be proud of my action(s)? • Will I feel good if my decision is published in the newspaper? • Will I feel goodif my family knew about it? From “The Power of Ethical Management” by Kevin Blanchard and Norman Vincent Peale, 1988

  34. Resources • Ethics Resource Center www.ethics.org ● Josephson, Michael Making Ethical Decisions, Josephson Institute of Ethics, 2002www.josephsoninstitute.org

  35. “Now, go out there and do the right thing!”

  36. THANK YOU! Lynda Allair, CPPO Project Lead BPS Supply Chain Secretariat Ontario Ministry of Finance Treasury Board Office 777 Bay Street, 8th Floor Toronto, ON M5G 2C8 Ph 416-325-3474 Lynda.Allair@ontario.ca

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