Using ethical codes and policies to set expectations

Good practice guidance for WA public authorities

Ethical codes, policies and procedures

Once the authority has identified and assessed its risks it needs to decide on a fit-for-purpose policy position that takes into account the level of risk it is prepared to accept. Setting expectations through ethical codes and policies provides officers and stakeholders with certainty about what is expected of them, and are an important way an authority controls its risks.

Depending on its circumstances, the authority may set a policy position that:

  • does not allow the acceptance of any gifts, benefits and hospitality as the risks are too high
  • allows acceptance of certain gifts, benefits and hospitality where the risks are low and considered token and infrequent
  • allows most officers to accept certain gifts, benefits and hospitality, as above, but applies a higher standard to officers in high risk positions or functions or undertaking high risk activities.

It is good practice to reinforce messages about gifts, benefits and hospitality in both ethical codes and policy. If doing so, the authority should ensure both documents are cross referenced to help officers understand expectations and comply.

Minimum expectations

There are minimum expectations that should be included by all authorities:

  • Officers should never expect to receive anything extra for doing what they are paid to do.
  • Officers should never use their role to solicit gifts, benefits and hospitality for themselves or others.
  • Officers should never accept:
    • offers of cash and items easily converted to cash such as gift vouchers and shares
    • bribes and inducements to act in certain ways
    • offers provided to family members and associates on their behalf
    • offers from people and organisations they are making a decision in relation to.

Drafting ethical codes and policies

Defining the policy

  • Clearly explain the authority’s policy position.
  • Define gift, benefit and hospitality in the context of the authority.
  • Describe when gifts, benefits and hospitality can be accepted, if at all.
  • Describe who is responsible for approving the acceptance of gifts, benefits and hospitality. Consider having an ‘approver’ who is sufficiently senior and outside the business area.
  • Make it clear the authority owns the gift or benefit unless otherwise approved.
  • Explain how culturally and historically significant gifts are managed, for example they are owned by the authority regardless of value, how they are stored or displayed and whether they are recorded as assets.
  • Encourage officers not to enter competitions and door prizes when attending events in an official capacity. Describe how prizes, if they are unavoidable, are treated, for example they are considered gifts and managed in accordance with the policy.
  • Consider whether declined offers need to be declared and recorded in the authority’s register.
  • Explain how the receipt of unexpected gifts, such as promotional materials and gift baskets, are managed.

Helping officers comply

  • Make sure the procedures for declaration, approval, registration and disposal are simple and easy to follow, with clear and accessible forms.
  • Nominate an officer or business area to advise officers how to comply.
  • Identify possible ‘red flags’ that officers need to be aware of that may be used to cultivate a relationship such as:
    • continual offers even of a token nature from the same person or organisation
    • use of high pressure tactics to entice officers to accept gifts, benefits and hospitality
    • use of third parties to provide officers with gifts, benefits and hospitality
    • offers to provide gift and benefit in secret.
  • Incorporate decision-making tools like the GIFT test into policies and guidance.
  • Include real examples and scenarios that highlight the authority’s unique risks.
  • Explain how officers can speak up about inappropriate offers and acceptance of gifts, benefits and hospitality, and the reporting pathways available.
  • Explain the potential consequences of not complying with the policy, for example if officers do not declare or register gifts, benefits and hospitality, or deliberately undervalue them.

Setting dollar values

Be mindful of setting dollar values as a deciding factor for accepting gifts, benefits and hospitality.

Dollar values may:

  • encourage officers to focus on the value rather than the intention, or perceived intention, behind the offering of a gift, benefit or hospitality, or the frequency of offers
  • encourage officers to intentionally undervalue a gift, benefit or hospitality.
  • not meet community expectations if set too high.

If an authority sets a dollar value, it is beneficial to include examples of gifts, benefits and hospitality that might fall within the value and present a low risk if accepted.

The authority may also wish to consider setting a threshold limit for accumulated gifts, benefits and hospitality from the same person or organisation over a period of time.

Other considerations: Sponsorship, sponsored travel, hospitality and free training

Depending on the authority’s risk environment, consider developing separate or discrete policies and procedures on sponsorship, sponsored travel and hospitality.

Sponsorship

Sponsorship is the right to associate the sponsor’s name, products or services with the sponsored organisation’s service, product or activity.

Sponsorship arrangements may involve negotiated and specific benefits like funding, in-kind support and promotional opportunities. Benefits and hospitality such as tickets to the sponsored event might be part of the arrangement.

An authority receiving and using benefits and hospitality that are part of sponsorship arrangements should ensure accountability and oversight in the way these are managed. Benefits and hospitality should be:

  • appropriately negotiated, managed, distributed and accounted for as a public resource, including making and keeping appropriate records to ensure transparency
  • used only for business purposes and not to provide personal benefit to officers, their family members and associates
  • distributed in a way that minimises any conflict of interest such as ensuring segregation of duties in the sponsorship arrangement where the officer who negotiates the arrangement is not the officer who allocates any benefits and hospitality, and those who receive any perceived benefits
  • periodically monitored and audited to ensure they continue to meet legislative and policy obligations.

Sponsored travel refers to transport, accommodation and hospitality for travel which is partially or fully funded by a third party.

In the course of their work, an officer or the authority may receive offers for interstate or international sponsored travel for an event or another purpose. The event may be for a legitimate business reason but the third party sponsorship may:

  • carry an expectation from the client, supplier or stakeholder
  • create the perception that the officer is receiving the benefit rather than the authority or community.

Sponsored travel should be treated with caution. It should only be approved where any conflict of interest can be resolved or managed in the public interest. The authority can minimise the risks by paying for the work related travel expenses of its officers.

In setting a policy position on sponsored travel, the authority should undertake the following:

  • Refer offers of sponsored travel to the authority’s leaders for approval. Where the offer is made to the authority’s leaders, the ‘approver’ should be a person with sufficient independence and standing to approve it.
  • Require a business case to be prepared that demonstrates benefits to the authority, government or community rather than benefits only to an individual officer. This could include how an officer shares any learning from the travel.
  • Describe how any conflict of interest is to be managed and resolved in the public interest. For example, ensure the officer does not make decisions about the third party that provided the sponsored travel.
  • Require offers of sponsored travel to be disclosed, and accepted sponsored travel to be monitored. This may include retaining receipts for flights, accommodation and hospitality.

Hospitality

Some officers associate with the commercial, private and not-for-profit sectors, overseas visitors and delegates as part of their jobs and this often involves hospitality. While this may be a normal part of the authority’s business, integrity risks are still present. They should be managed so that accepting hospitality does not create a conflict of interest or the perception of preferential treatment of those stakeholders.

In setting a policy position on accepting hospitality, the authority should consider the following:

  • Provide officers with practical examples of lower risk hospitality such as:
    • an officer attending an event in their official capacity as the authority’s representative to conduct the business of the authority
    • hospitality provided as part of a conference or professional development package that the authority has paid for the officer to attend
    • low value hospitality provided by the host of a free event or function (like those hosted by other authorities) for the purposes of learning, sharing knowledge and furthering the business of the sector
    • occasional light working meals where the hospitality is incidental and low value such as sandwiches, fruit and non-alcoholic beverages.
  • Provide officers with practical examples of higher risk hospitality such as:
    • restaurant meals and invitations to corporate boxes and marquees that have no link or obvious benefit to either the authority or government priorities and objectives
    • invitations by clients, suppliers and stakeholders to lunches and dinners to celebrate achievements or say ‘thanks’ for a job well done which may be an attempt to build an ongoing relationship
    • invitations by clients, suppliers and stakeholders to events held at their homes or that extend to the officer’s family members and associates.

Where, after reading the authority’s policy and procedures, an officer is still unsure about accepting hospitality, they should seek advice from their manager or nominated policy contact.

Free training

Offers of free training by clients, suppliers and stakeholders may be considered a gift, benefit or hospitality and can create a conflict of interest. While the training may be free, the officer or authority should be mindful that it may be offered as a promotional opportunity for a new product or service, or to build an ongoing relationship.

The authority should assess offers on a case-by-case basis to ensure that acceptance:

  • aligns with its policy position and legislative obligations
  • is appropriate to the circumstances with particular attention paid if the officer attending has discretionary decision-making power.

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