In 2009, WFP purchased goods and services. breach of ethics at a minimum affects WFP. Impropriety can affect WFP s ability to achieve its mandate.
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- Karin Booker
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1 $? $? $??? Guide to Ethics in Procurement
2 Background In 2009, WFP purchased goods and services worth US$408 million. No matter how seemingly insignificant, a breach of ethics at a minimum affects WFP credibility. Impropriety can affect WFP s ability to achieve its mandate. 2
3 Objectives of this Guide Remind staff of their duties as WFP staff members (UN Oath of Office) Understand ethical principles in the context of WFP procurement Learn how to handle ethical dilemmas, and share best practices Highlight where to find relevant documents 1 $?
4 What is Ethics? Ethics is the discipline relating to right and wrong, moral duty and obligation, moral principles and values, and to moral character. In the WFP context and culture, staff should make every effort to discharge their functions and regulate their conduct with the interests of WFP only in view. Spirit of the Law vs. Letter of the Law Whenever there is no specific law or procedure in place, an Ethical Code helps you to answer the questions: What must I do? Why must I do that? and to comply with the Spirit of the law. Diversity of Cultures = Diversity of Perspectives Plural world Different backgrounds Different understanding of ethics Although we must respect diversity, we must also find a Common Ground when working together in WFP. 2
5 WFP s Common Ground for Ethical Behaviour Mission, Rules and Regulations define the values of the Organization and the rights and obligations of staff. UN Staff Rules - Duties, obligations and privileges (UN Secretary-General s bulletin, Article I, October 2009) Standard of Conduct for the International Civil Service (ICSC, 2001) Code of Ethics for UN Personnel Zero tolerance policy for gifts/hospitality (UN Procurement website) WFP Staff Regulations - Duties, obligations and privileges (Article 301.1) Legal Framework for Addressing Non-Compliance with United Nations Standards of Conduct (WFP Joint Directive of n. HR2010/002; LEG2010/001; OS2010/002) Ethics Memorandum n. 001/2009 (WFP Ethics Office, April 2009) Ethics Memorandum n. 002/2009 Update on WFP s Financial Disclosure Programme (WFP Ethics Office, June 2009) UN General Conditions of Contract : Officials not to benefit (Article 6) WFP s Non-Food Procurement Policy (ED Circular, ) 3
6 Oath of Office I solemnly swear (undertake, affirm, promise) to exercise in all loyalty, discretion and conscience the functions entrusted to me as an international civil servant of the United Nations, to discharge these functions and regulate my conduct with the interests of the United Nations only in view, and not to seek or accept instructions in regard to the performance of my duties from any government or other authority external to the Organization. Ethical Principles WFP Guiding Procurement Principles Integrity: Transparent, honest and fair Competition: Competitive tendering Fairness/Equal treatment: Same conditions for all suppliers 4
7 Other Principles Stewardship Segregation of duties Checks and balances Loyalty and respect for rules and regulations Impartiality Confidentiality Transparency Avoidance of conflict of interest Honesty Avoidance of appearance of impropriety Due diligence Efficiency Professionalism Integrity within WFP Demonstrates WFP values in daily activities and behaviours Acts without consideration of personal gain Resists political pressure in decision-making Does not abuse power or authority Stands by decisions that are in the Organization s interest, even if they are unpopular Takes prompt action in cases of unprofessional or unethical behaviour 5
8 Examples of Conflicts of Interest Accepting gifts from individuals or organizations with which WFP has a relationship, including vendors, consultants and governments Accepting entertainment from individuals and organizations which seek to do business with the United Nations or influence it Supporting an external organization through your work, major financial donations, or by lending your name or reputation to an effort Using the reputation of the United Nations for personal benefit Ultimate Conflict of Interest: Fraud Definition: Deliberate deception in order to secure an unfair or unlawful gain ; To gain something of value by false pretenses ; simply expressed: To cheat. Risk of fraud is highest where goods and/or services are exchanged (i.e. procurement); and/or where there are close relationships. 6
9 Common Reasons Given as Excuses for Breach of Ethics I have to cut corners to meet my goal. I lack the time/resources to do what is right. My peers expect me to act this way. My superiors want results. I don t think it is really wrong or illegal. Others would think that it is a good choice. No one will ever know the difference. I am afraid to do what I know is right. This is how it has always been done. Let s be practical. Symptoms of Unethical Behaviour Watch Out for Potential Red Flags Deviations from correct procedures Poor record keeping / Missing files Excessive secrecy Reluctance to delegate Protective of certain suppliers Resistance to audit Unnecessary meetings with suppliers Overcharging by the supplier $ 7
10 The Ethical Decision-Making Model 1. Evaluate the situation and check the facts 2. Identify the ethical issue/s that are at stake in the situation 3. Think about how this affects others and explore possible solutions 4. Commit to professionalism and integrity, and comply with UN/WFP values, standards and policies 5. Seek the help of others, as needed 6. Satisfy your responsibility to WFP, to others and to yourself Fraud Prevention at WFP All staff have a duty to be alert to fraudulent activities Special duty and accountability rests with managers to prevent fraud Report possible fraud to OSI hotline on WFPgo There is no retaliation for reporting fraud or mismanagement (WFP s Whistleblower Policy ED 2008/003) Credible allegations will be investigated by OSI; staff have an obligation to cooperate Appropriate actions will be taken 8
11 Disciplinary Measures - Consequence of Breach of Ethics WFP Directives: HR2010/002; LEG2010/001; OS2010/002 Written censure; Loss of one or more steps in grade; Deferment, for a specified period, of eligibility for salary increment; Suspension without pay for a specified period; Fine; Deferment, for a specified period, of eligibility for consideration for promotion; Demotion with deferment, for a specified period, of eligibility for consideration for promotion; Separation from service, with notice or compensation in lieu of notice and with or without termination indemnity; Dismissal. 9
12 Good Working Practices with Suppliers Business should be conducted during normal working hours Meetings with suppliers should be with minimum two WFP staff members Suppliers should not be invited to WFP staff offices but to the cafeteria or meeting room Meetings should have an agenda and minutes Ensure sufficient distance when working with suppliers, especially when the same one for many years Make sure you are aware of relevant policies and how to apply WFP s ethical principles in your work What Can we Do in our Daily Work to Maintain WFP s Ethical Values? Know regulations, rules and procedures, including the spirit of the law Know and apply WFP s ethical values Be self reflective & when in doubt, ask Discuss openly difficult situations and examples of good behavior Help create a culture of ethical behavior 10
13 WFP Ethics Office WFP is one of many UN agencies employing an Ethics Officer, and is an active member the UN Ethics Committee. The principal functions of the WFP Ethics Office are: to administer WFP's policy on protection against retaliation for reporting misconduct (Whistleblower Policy); to develop and administer the Financial Disclosure Programme; to assist the Executive Director in maintaining the highest standards of integrity as per the UN Charter and ICSC Standards of Conduct; to provide confidential advice to staff and management on ethics issues or potential conflicts of interest, including maintenance of website hosting online training courses, FAQs, relevant policy circulars and other resources. Confidential mailbox: WFP s Non-Food Procurement Policy Requirements Competition Separation of Duties Delegation of Authority Roster of Qualified Suppliers Documentation and Record-Keeping 11
14 Zero Tolerance for Gifts and/or Hospitality WFP has a "zero tolerance" policy and does not accept any type of gift or any offer of hospitality. WFP expects WFP suppliers not to offer any gift or any offer of hospitality. All items received from vendors, even of nominal value, will be returned to the vendor or donated to charity. There may be exceptional circumstances, however, when gifts cannot be returned, for instance when it would embarrass a government. In all such cases, the gift must be registered by the Ethics Office, using the Gift Disclosure Form. A directive outlining procedures for disposal of gifts through local and HQ Property Survey Boards is under preparation. Ethics - Transparency is Everyone s Business Respect WFP s rules and regulations Always bear WFP s interest in mind Apply principles of professionalism, efficiency and integrity Take minutes of all meetings with suppliers Avoid meeting suppliers in the office 12
15 When managing a contract, balance the need to get the supplier trust with the one of keeping distances Refrain from sharing confidential information Act in the interest of WFP but taking into account rules and procedures Try to understand the spirit of the law and what the rationale behind the rules is Bear in mind the declaration that you signed when joining WFP Be alert about potential red flags Openly discuss whenever facing difficulties Share procurement knowledge within your unit Increase the awareness of ethical values in your unit Ensure compliance with correct procurement procedures when dealing with WINGS2 Increase your knowledge of procurement rules and procedures Don t feel uncomfortable when recalling some basic rules during daily work Make use of the Ethical Decision-Making Model Be aware that there are many documents that might help you to deal with grey areas Be sure to document and file any deviation from the correct rules Set a good example Apply the Learn, Think, Act process If in doubt: ask! 13
16 What is Ethics? Ethics is the discipline relating to right and wrong, moral duty and obligation, moral principles and values, and to moral character. December 2010 World Food Programme Via Cesare Giulio Viola, 68/ Rome, Italy
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