FOSTERING AN ORGANIZATIONAL CULTURE THAT PROMOTES ETHICS, INTEGRITY AND ANTI-CORRUPTION

1. FOSTERING AN ORGANIZATIONAL CULTURE THAT PROMOTES ETHICS, INTEGRITY AND ANTI-CORRUPTION Shallet M. Walongo EDUCATION OFFICER EACC

2. Objective To understand organization culture and how it influences corruption prevention and promotion of ethical practices in public organizations.

3. Ethics Ethics is the code of moral principles and valuesthat governs the behavior of a person or a group with respect to what is right or wrong. Ethics serve as guidelines in the conduct of duties for employees in organizations

4. Integrity • Quality of excellence manifested in a holistic and integrated manner in individuals and organizations • Adherence to principles of honesty, competency, trustworthiness, truthfulness, transparency, accountability, justice etc • Integrity is doing the right thing at all times when no one else is watching or is likely to know what you did. It means telling myself the truth and it comes from within.

5. What is Culture? • Culture consists of the beliefs, behaviors, objects, and other characteristics common to the members of a particular group or society.

6. What is culture . UNESCO: culture is the whole complex of distinctive spiritual, material, intellectual and emotional features that characterize a society or a social group. It includes not only the arts and literature, but also modes of life, the fundamental rights of the human being, value systems, traditions and beliefs

7. Organizational Culture The collection of relatively uniform and enduring values, beliefs, customs, traditions and practices that are shared by an organization's members, learned by the new recruits and transmitted from one generation of employees to the next. Edgar Schein

8. Why Organization culture? • An organization’s culture can help or hinder: • Achievement of goals and objectives • Execution of strategy • Productivity and performance • Flexibility and responsiveness to new challenges and changing circumstances • Long-term sustainability and viability • Actual and perceived success

9. Manifestation of Culture • Surface manifestation and artifacts • Shared value • Common Assumptions

10. Surface manifestation and artifacts Dress code, formality in relations Surface Manifestations and artifacts Ceremonies, corporate rituals Communication jargons Decision making (dialogue or kitchen cabinets) Conflict handling Working hours The physical infrastructure level of technology utilized The physical layout of work spaces. formality in relationships

11. Shared value Dominant and coherent set of values shared by a group as a whole e.g. Shared values are considered to be the foundation of ethics Safety Shared values Equity in payment Customer service Quality Gender equality Efficiency Profits Integrity:

12. Basic/common Assumptions • Solution to problem is repeated over and over again. hypothesis becomes reality • If people are treated consistently in terms of certain basic assumptions, E.g. if a boss believes that people are born unequal, he/she will assume that he is naturally superior to the workers

13. What factors encourage negative culture? • Systemic weaknesses & loopholes • Biased reward & punishment systems • Unnecessary competition/ egocentric • Individual interests override organization interests • Unfavorable prevailing perceptions and attitudes • Lack of clear policies & procedures • Lack of role models/mentors • Lack of /or failure to enforce prescribed rules/regulations

14. Destructive cultures that promote corruption and unethical practices • Non-reporting of misconduct to management • Withholding information relating to improprieties or noncompliance. • Culture of fear and confusion • Inconsistencies in handling misconduct.

15. Destructive cultures Cont’ • Authority is more important than service. People in power positions feel that it is necessary for them to constantly exercise that power by riding the people under them. • Process is more important than purpose e.g. in sales.

16. Destructive cultures Cont’ • Cost Control vs. Happy clients/customers. • Politics, backbiting, gossips ,rumors • Backstabbing, • Individualism: Nobody knows what you do! • “Boot leaking” • Power distances: managers who are hard to reach

17. Destructive cultures Cont’ • Use of public property for personal gain. e.g office vehicles, staff, printing papers • Giving and receiving bribes and favors • Lateness and absenteeism • Nepotism and tribalism • Appointments based on other considerations other than merit • Cartels, ‘godfather/mother’, illegal networks, gangs, “kitchen cabinets”

18. Traits of an organization with Healthy culture • Ambition towards being better. Strong company culture focuses on improving and getting better at every level. • Obvious teamwork • Continuous communication. • Quality leadership. The CEO is the torchbearer of Integrity • Employee relationships. with employees who work together where it's not every man for themselves. Employees at all levels are able to walk the talk

19. Traits Cont’ • Client and consumer relations. organization takes customer service as their true motto • Honesty and safety. No employee should ever be asked to do anything unsafe or dangerous. E.g.. Flying a defective plane • Recognition of heroes(in) • Education and developmental programs. The company is heavily invested in training its employees. • Cutting edge thinking. Employees are innovative and think outside of common trends. Management acknowledges and encourages new ideas

20. Traits Cont’ • Networking amongst members • Non discrimination: Employees are rewarded on performance, there is lack of discrimination due to age, race, color and gender, social status, tribe and there is minimal harassment and workplace aggression • Organizational pride. Employees are not embarrassed about their organization • Believes in rituals and ceremonies e.g. team building, employee of the year award, family fun day, cleanup day, departmental meetings • Business is conducted on values of integrity, honesty and fairness

21. How does organization culture prevent corruption and Unethical Practices? • Employees freely raise issues and concerns without fear of retaliation • Managers model the behaviors they demand of others • Managers communicate the importance of integrity when making difficult decisions. • Leadership understands the pressure points that drive unethical behavior and develop processes to identify and remedy those areas

22. Cont’ • Employees feel a sense of responsibility and accountability for their actions. • Employees feel pressure to comply with the prevailing culture and behave in the same way as most other people in the organization. • If culture allows, or even rewards, improper or corrupt behavior then corrupt conduct is more likely to occur. • If the culture is one that encourages and rewards compliance with policies and the organization's values then corruption will be less likely to occur.

23. What can individual managers do to promote ethical organizational culture? • Create an environment for change • Including corruption prevention policy and awareness in inductions for staff such as conflicts of interest requirements. • Providing opportunities to discuss corruption risks and prevention measures in day-to-day communication • Making sure employees know how to report corrupt/unethical conduct – internally and externally.

24. Cont’ • Visibly reward ethical acts and punish unethical ones. • Provide protective mechanisms. Provide formal mechanisms so that employees can discuss ethical dilemmas and report unethical behavior without fear of reprimand. • Staff from organizations with questionable integrity should be vetted before being hired lest they bring the infection home

25. Cont’ • Communicate ethical expectations. by creating and disseminating an organizational code of ethics. Note that a code of ethics is worthless if top management fails to model ethical behaviors. • Offer ethics training and Set up seminars, workshops, set up integrity committees • Be a role model and be visible. When senior management is observed (by subordinates) to take the ethical high road, it send a positive message for all employees.

26. Cont’ • Encourage Dissent: Corruption is less likely if employees feel comfortable speaking up. • Appoint an Integrity Officer. Have someone who knows both legal and ethical issues and can offer advice to employees when they don’t know how to handle a situation. • Design of physical space, and buildings where seniors interact with juniors. E.g. common parking, tea area, • Stories about important events and people who have made a difference in the organization . This is a way that culture is perpetuated in an organization,

27. Desired Culture • Initiative • Teamwork • Creativity • Commitment Actual/Prevailing culture • Politics • Internal competition • Individual Agendas • Avoidance of Blame • Indifference Moving forward Culture gap Uncover this!!

28. Conclusion • Building a strong constructive organization culture is necessary to curtail corporate fraud and white color crime.