MINIMUM MUNICIPAL COMPETENCY PROGRAMME

Zwelinzima Ndevu

Unit Standard 116343Apply the Principles of Ethics in a Municipal Environment

Module 1Stakeholder Consultation and Ethics in Municipal Finance

Group 3 Governance and Legislation

The full programmeGroup Modules

1. Strategic Management; Budgeting Implementation & Performance Management

3. Strategic Planning & Multi Year Income &

Expenditure Management

6. Budgeting Principles & Cycles

7. Financial Reports & Performance Management

2. Municipal Accounting & Risk

Management

8. Cash, Investment, Asset, Liability Management

4. Risk Management; Internal Control Framework

Design and Audit Planning and Implementation

3. Governance & Legislation 1. Stakeholder Consultation & Ethics in Municipal

Finance

2. Intergovernmental Fiscal Relations, Legislation

& Policies affecting Municipal Financial Mngmt

4. & 5. Costing & Capital Planning;

Municipal IT Support & Project

Management

9. Capital Planning & Financing & Costing

Principles

5. Managing Information Technology Resources in

Municipal Finance

6. Supply Chain Management &

Public Private Partnerships

10. Municipal Supply Chain Management

11. Public Private Partnerships

The content

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NQF Le 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5

Credits 10 11 12 15 10 10 15 10 15 8 12 12 8 15 8 8 11 12 8 12 12 15 15 12 15 12

CMFM 48965

C C E C F C C C C F E C E C E E C C CNot applicable for

CMFM

Key Certificate SAQA ID - 48965 - 166 credits; F = Fundamental; C = Core; E = Elective (1)

AccOff X X X X X X X X X X X X X X X X X X

CFO X X X X X X X X X X X X X X X X X X X X

SnrM X X X X X X X X X X X X X X X

MidFin X X X X X X X X X X X X X X X

SCMH X X X X X X X X X X X X X X X X

SCMM X X X X X X X X X X

1 Individual

assessment

Open book

case study

based

controlled

class test

23 May 2018 2-hour paper consisting of a case study

with insight questions relating to all

outcomes: It will be expected of the

learner to apply the theoretical

models/tools to the questions.

OUTCOME 1: Demonstrate knowledge

and insight into existing legislation,

regulations and codes affecting activities

of municipalities in South Africa

OUTCOME 2: Apply the principles of

ethics and professionalism to a municipal

code of conduct Assessment Criteria

OUTCOME 3: Develop an implementation

plan to achieve compliance with an

established code of ethics

2 Individual

work-based

assignment

31 October 2018 Research the factors that undermine

ethics in your municipality and

recommend solutions. In doing your

assignment reflect on what you have

learned and respond to the following

questions: 1. What are the values and

ethical standards? 2. What conditions

would cause the compromise of the

abovementioned values and standards?

3. What should be the approach of the

municipality in dealing with ethical

dilemmas? Is the code of conduct

important in regulating the behaviour of

stakeholders in a municipal financial

environment? Briefly explain your

response.

OUTCOME 1: Demonstrate knowledge

and insight into existing legislation,

regulations and codes affecting activities

of municipalities in South Africa

OUTCOME 2: Apply the principles of

ethics and professionalism to a municipal

code of conduct Assessment Criteria

OUTCOME 3: Develop an implementation

plan to achieve compliance with an

established code of ethics

US116343- Assessment Plan

Ethics in Municipal Finance– setting the context and challenge

Round-table interactive workshop:

• Individually reflect upon your (1) personal (in your community) and (2) professional experience (at your office/department) with regards to Ethics in municipal environment

• In a round-table discussion, share your views with the group

Module 1Stakeholder Consultation and Ethics in Municipal Finance

SAQA 116343Apply the Principles of Ethics in

a Municipal Environment

Specific Outcomes

1. Demonstrate knowledge and insight intoexisting legislation, regulations and codesaffecting activities of municipalities inSouth Africa …

2. Apply the principles of ethics andprofessionalism to a municipal code ofconduct …

3. Develop an implementation plan toachieve compliance with an establishedcode of ethics …

Orientation

Ethics and Ethical Behaviour in a

Municipal Government

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Morality is understanding thedistinction between right andwrong and living according to thatunderstanding, and ethics is thephilosophy of how that moralityguides individual and groupbehaviour. The two are closelyrelated, with morality being thefoundation of ethics.

What is the difference between morality and ethics?

The principles (values) … what is right, what is good and what is proper

The standards which guide us in achieving what is right, good and proper

The sustained efforts … to employ those sound principles and standards - which best serve the public and their interests

Ethics – a definition

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Behaviour – lack of diligence and

probity

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• Laziness

• Carelessness

• Waste of the organisation’s resources

• Abuse of the organisation’s assets

• Disrespect for the public and their interests

24

Behaviour –dishonesty for

purposes of self interest

24

• Corruption, theft, graft and fraud

• Using insider knowledge and influence

• Self-dealing

• Making personal use of government property

• Unauthorised outside employment

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Professionalism and ethics in the

workplaceCriteriaCharacteristicsCompetenciesExpectations

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• Training• Intellectualism• Autonomy• Judgement• Independence• Service• Pride• Dedication

Criteria for attaining recognition as a professional

• Experts• High degree of generalisation

and systematic knowledge• Oriented to their public interest• High degree of self control• Effort equal or exceed reward• Accountable

Characteristics of a professional

Competencies of a professional

Expectations of a professional

• Accomplish established objectives• Bring new ideas• Learn new things (be willing to try)• Grow professionally• Maintain a positive attitude• Be a team player• Maintain a high level of integrity

Relationship between ethical individuals and

ethical organisations

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UNETHICAL BEHAVIOUR IN THE

PUBLIC ORGANISATION

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“Public Service is public trust. Citizens expectpublic servants to serve the public interest withfairness and to manage public resourcesproperly on a daily basis. Fair and reliable publicservices inspire public trust and create afavourable environment. Public service ethicsare a prerequisite to, and underpin public trustand are a keystone of good governance.”

OECD

“ … trustworthiness, responsibility, respect, compassion, fairness and citizenship … ”

IGE

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A RANGE OF ORGANISATIONAL

RESPONSES TO UNETHICAL BEHAVIOUR

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LEGISLATION, REGULATION AND

CODES APPLICABLE TO MUNICIPALITIES

IN SOUTH AFRICA

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“The ultimate answer to ethical problemsin government is honest people in a goodethical environment. No web of statute orregulation, however intricately conceived,can hope to deal with the myriad ofpossible challenges to a person’s integrityor his devotion to the public interest.”

President John F. Kennedy - 1961

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The Bill of Rights

Rights & Obligations

The Chapters and the Sections ……

The ConstitutionAct 108 of 1996

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And all the legislation …

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And Codes of Conduct …

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Class exercise

• Identify a professional field within municipal environment

• Identify three ethical concerns (are the issues becoming more of a problem or getting worse)

• Identify relevant stakeholders in the conflict (what values are in the conflict for each stakeholder)

• How to handle the issue and why?

Disclosure …

Recusal …

Conflict of Interest

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?

King II –Triple Bottom Line

Eco

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So

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Governance

King Reports

1994 – King I“ … integrated approach to the good governance in the interests of a wide range of stakeholders …”

2002 – King II“ … a move to the triple bottom line, embracing the economic, environmental and social aspects …”

2009 – King III“ … core philosophy revolving around leadership,

sustainability and corporate citizenship …”

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Concepts

• Accountability

• Responsibility

• Stakeholders

• Role-players

• Corporate Governance

• Vision

ConsultationService standardsAccessCourtesyInformationOpenness and transparencyRedressValue for money

Batho Pele

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Codes of conduct and ethics in the

workplaceLearning activity

(see next slide)

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Codes of conduct and ethics in the

workplaceEnron

Group exercise

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Good governance includes ten principles as requisites of ethical local governance:These principles are:

• Participation;• Rule of Law;• Transparency;• Equality;• Responsiveness;• Vision;• Accountability;• Oversight;• Efficiency and Effectiveness; and• Professionalism.

Codes of conduct and ethics in the

workplaceLearning activity

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Applying principles of ethics

andprofessionalism in

the municipal environment

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Public Sector Code of Conduct (66)

Code of Conduct for Municipal Staff Members (68)

Codes of Conduct …

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Principles of personal ethics

Principles of professional ethics

Principles of global ethics

International principles …

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Application of principles to Codes of Conduct in the

South African public sector

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68+

Dilemmas …• relationship with councillors• relationship with the public• relationship among employees• performance of duties• personal conduct - private interests

Ten-step method for resolving ethical dilemmas(adapted from Wallace & Pekel)

1. What are the known facts in the situation?2. Who are the key stakeholders, what do they value and

what are their desired outcomes?3. What are the underlying drivers causing the situation?4. In priority order what ethical principles or operating

values do you think should be upheld in this situation?5. Who should have input to, or be involved in, making

this decision?

Ethical Dilemmas: steps 1 - 5

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6. List any alternative and action plans that would:

a) prevent or minimise harm to stakeholders

b) uphold the priority values for this situation

c) be a good solution to the situation7. Build a worse-case scenario for your preferred alternative

to see how it affects the stakeholders. Rethink and reviseyour preferred alternative if necessary.

8. Add a preventative ethics component to your action planthat deals with the underlying drivers causing thesituation listed in Step 3.

9. Evaluate your chosen decision and action plan against anyrelevant checklist or code of conduct.

10. Decide and build an action plan, and implement andmonitor it.

Ethical Dilemmas: steps 6 - 10

1. Have you defined the problem accurately?

2. How would you define the problem if you stood on the other side of the fence?

3. How did this situation occur in the first place?

4. To whom and what do you give your loyalties as a person and as a member of the municipality?

5. What is your intention in making this decision?

6. How does this intention compare with the likely results?

7. Whom could your decision or action injure?

8. Can you engage the affected parties in a discussion of the problem before you make your decision?

9. Are you confident that your position will be as valid over a long period of time as it seems now?

10. Could you disclose without qualm your decision or action to your boss, your municipal manager, the council, your family, or society as a whole?

11. What is the symbolic potential of your action if understood? If misunderstood?

12. Under what circumstances would you allow exceptions to your stand?

Ethical Dilemmas – the 12 questions

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Ethical dilemmas Three examples –

individual assignment

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Dealing with ethical misconduct in the workplace

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• Verbal warning

• Written warning

• Reprimand

• Suspension

• Termination

– Disciplinary steps (82)

– Dealing with fraud, theft or corruption in the workplace (82)

Forms of warning

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Resolving ethical dilemmas in the

workplaceLearning activity

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Compliance with an established code of ethics

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• Municipal Manager support

• An Ethics Committee within council?

• Ethics Officer?

• Ombudsman?

• One person responsible!

– The guidelines … (96)

Roles and responsibilities in an

ethics management programme

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Hoffman’s Ethical Pyramid99

• Purpose …

• Guidelines …– Identify and review values

– Review which values support the ideal

– Identify behaviours

– Identify core values - the top five to ten

– Compose a code of ethics

– Include wording - all employees are expected to conform

– Obtain review from key members of the municipality.

– Announce and distribute the new code of ethics

– Update the code at least once a year.

Initial tasks of an ethics management programme

100

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Implementing the

code of ethics …• Internal initiatives• Communicating internally• External initiatives• External communication

Whistleblowers’ Charter

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A - Code of Conduct for Councillors

B – Code of Conduct for Municipal StaffMembers

C – South African Public Service Code of Conduct

D – Prevention and Combatting of Corrupt Activities Act, 2003

E – Sample Ethics Programme for a municipality125+

Appendices

SCHOOL OF PUBLIC LEADERSHIP

Thank you ……