Corruption Matters - May 2019 | Issue 53
Report identifies familiar workplace trends
Corruption is not a stagnant phenomenon; rather, it evolves and adapts to the environment. But many of the systemic issues that underlie corrupt conduct are not new – that is one of the key findings of the ICAC’s landmark 2018 report on the state of corruption in NSW.
The ICAC continues to encounter many of the same forms of corruption that have occupied it over the past three decades: false invoicing, payment of secret commissions and partiality in the performance of public functions.
At the core of these, more often than not, is the breach of a policy, procedure or other control rather than an absence of a control. This, combined with the unilateral exercise of discretion in decision-making and concealed conflicts of interest, features in many of its investigations.
Many agencies have moved beyond the compliance-driven mindset that treats corruption as a problem that can be easily solved with more rules and better enforcement. No matter how robust a policy, there will almost always be undeclared conflicts of interest in an organisation and therefore a need for agencies to have measures in place to identify these wherever possible. At a minimum, this entails having a robust whistleblowing system that allows employees and contractors to report suspected misconduct.
Another finding made by the ICAC in Corruption and integrity in the NSW public sector: an assessment of current trends and events is that staff take many of their behavioural cues from management. If staff observe their direct and senior managers concealing conflicts, favouring mates and cutting corners, it becomes psychologically safe, or even normal, to adopt the practices of management – regardless of what the documented policy might say.
The ICAC has observed management failures that are conducive to corruption or may discourage reporting, such as:
- using a “just-get-it-done” attitude (can encourage staff to cut corners or breach policy)
- writing convoluted or inconsistent policies (can make it easier for employees to excuse their own non-compliant behaviour)
- having dual reporting lines can dilute accountability for performance (can create gaps or false assumptions about oversight responsibilities)
- using pejorative language towards complainants and whistleblowers can tacitly endorse reprisal action.
Successful corruption prevention regimes focus on positives and set up ethical behaviour as the organisation’s behavioural norm. For example, agencies benefit from highlighting instances of compliant behaviour, where ethical dilemmas were faced and the organisation or an employee chose the right path. Agencies can also provide employees with practical lessons on recurring or typical ethical traps faced in their industry and highlight appropriate choices.
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Corruption and integrity in the NSW public sector: an assessment of current trends and events examines the nature of corruption and integrity on the eve of the ICAC’s 30th operational year. The ICAC provides advice on a range corruption prevention topics on its website. |
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