Managing Conflict of Interest in the Public Service : OECD Guidelines and Country Experiences

Oecd Guidelines For Managing Conflict Of Interest In The Public Service -- Managing Conflict Of Interest. A Comparative Overview Of Oecd Countries -- Principle-based Approach In Devolved Managment: The Australian Experience -- Principles And Prevention: Meeting Canadians' Expectations Of Ethical Behaviour In Public Life -- Prevention Through Updated Regulations And Sanctions: The French Experience -- Building A Coherent Framework At The Federal Level: The German Experience -- Managing Conflict Of Interest In A Decentralised System: The New Zealand Experience -- Managing Conflicts Of Interest In Transition Economies: The Polish Experience -- The Exclusiveness Principle In Practice: The Portuguese Experience -- Managing Conflict Of Interest In The Executive Branch: The Experience Of The United States. The Report Was Prepared By János Bertók ... --p. 3. Includes Bibliographical References. Foreword......Page 5 Table of Contents......Page 6 Preface......Page 12 Executive Summary......Page 14 Part I. OECD Guidelines for Managing Conflict of Interest in the Public Service......Page 22 A. A growing public concern......Page 23 Aims of the guidelines......Page 24 Defining a “conflict of interest”......Page 25 Serving the public interest......Page 26 Promoting individual responsibility and personal example......Page 27 D. Developing the policy framework......Page 28 Identify relevant conflict-of-interest situations......Page 29 Establish procedures for identifying, managing and resolving conflictof-interest situations......Page 30 Demonstrate leadership commitment......Page 32 Create a partnership with employees: awareness, anticipation and prevention......Page 33 Enforce the conflict-of-interest policy......Page 36 Initiate a new partnership with the business and non-profit sectors......Page 37 F. Recommendation of the OECD Council on Guidelines for Managing Conflict of Interest in the Public Service......Page 39 Part II. Managing Conflict of Interest. A Comparative Overview of OECD Countries......Page 40 A. Introduction......Page 41 B. Scope of the OECD survey......Page 42 Figure 1. Developing specific conflict-of-interest policy for particular categories of officials......Page 43 Box 1. Exemplary restrictions for the most senior positions in Germany......Page 45 C. Formal sources of conflict-of-interest policy......Page 46 Figure 2. Documents stating the principles and rules of conflict-of-interest policy......Page 47 Box 2. Conflict-of-interest regulations in Italy......Page 49 Box 3. Implementing policy in decentralised systems......Page 53 D. Managing conflict of interest: Approach and definition......Page 54 Box 4. Tailored approach to define conflict of interest: New Zealand......Page 55 Box 5. Definition of conflict of interest in Europe......Page 58 Box 6. The definitional approach of the OECD Guidelines......Page 59 Box 7. Policy review and revision: The case of extra-occupational activities in Sweden......Page 61 E. Identifying and resolving conflicting situations......Page 63 Box 8. Evolution of conflicts of interest: Three stages......Page 64 Figure 4. External activities and situations holding potential for conflicts of interest......Page 65 Figure 5. Business interests and activities holding potential for conflicts of interest......Page 66 F. Incompatibility: Restricting unavoidable, serious and pervasive conflicts......Page 67 Box 9. Incompatible political activities for specific groups......Page 69 Box 10. Incompatible activities for municipal councillors in Portugal......Page 70 G. The need for positive management......Page 71 Box 11. Requesting annual written statements in Ireland......Page 72 Box 12. Setting standards for public office holders at the supra-national level: European Union......Page 74 Figure 6. Measures for resolving conflict-of-interest situations......Page 75 Figure 7. Sanctions for breaching the conflict-of-interest policy......Page 76 Box 13. Setting proportional sanctions......Page 77 Box 14. Disciplinary sanctions in France......Page 78 I. Putting policy into practice: Information, consultation and monitoring compliance......Page 79 Figure 8. Informing officials on the conflict-of-interest policy......Page 81 Box 15. Providing information on the policy: Germany......Page 82 Box 16. Providing examples of conflict-of-interest situations......Page 83 Figure 9. Sources available for consultation in case of doubt......Page 84 Figure 10. Providing official information about the enforcement of the conflict-of-interest policy......Page 85 J. Assessing policy implementation: Procedures and driving forces......Page 86 Box 18. External assessment in the Executive Branch of the United States......Page 88 Figure 11. Factors influencing the conflict-of-interest policy in the past decade......Page 89 Table 1. The impact of new technology in processing financial disclosure forms: Argentina......Page 90 Box 19. Holistic approach to develop an open administrative culture: Finland......Page 91 The emerging fields of lobbying, political-administrative interface, sponsoring and whistle-blowing......Page 92 Recent developments......Page 94 Notes......Page 96 Bibliography......Page 99 Part III. The Experiences of OECD Countries......Page 100 A Principle-based Approach in Devolved Management: The Australian Experience......Page 102 Relevant aspects of the APS Values and Code of Conduct......Page 103 Responsibilities of APS employees......Page 104 Particular areas of sensitivity......Page 106 Legal restrictions......Page 108 C. Application of the measures to manage conflicts of interest......Page 109 Notes......Page 110 Annex 1. Australian Public Service Values......Page 111 Annex 2. Australian Public Service Code of Conduct......Page 113 Annex 3. The Bowen Code......Page 115 Annex 4. Principles and Procedures for Business Appointments......Page 117 Annex 5. Procedures to Deal with Conflict of Interest in Market Testing and Outsourcing Situations......Page 120 Annex 6. Criminal Provisions......Page 122 Annex 7. Department of Health and Ageing Policy on Managing Conflict of Interest in Committees......Page 124 Principles and Prevention: Meeting Canadians’ Expectations.........Page 128 The public office holders subject to the Conflict of Interest Code......Page 129 Box 20. Summary of ethics initiatives between 1973 and 1993 in Canada......Page 130 Box 21. The Canadian Conflict of Interest and PostEmployment Code for Public Office Holders......Page 131 The Code’s disclosure requirements......Page 132 Controlled assets......Page 133 Gifts, hospitality and other benefits......Page 134 Dealings with judicial and quasi-judicial tribunals......Page 135 Ministers and activities for personal political purposes......Page 136 Box 22. The Values and Ethics Code for the Public Service in Canada......Page 137 C. The roles and responsibilities of the Office of the Ethics Counsellor......Page 138 Initial compliance......Page 139 Annual review and ongoing reporting......Page 140 Representing constituents: advice to Ministers, Secretaries of State and exempt staff......Page 141 Members of Parliament and Senators......Page 142 Dealings with judicial tribunals, quasi-judicial tribunals......Page 143 Private interest and outside activities......Page 144 Preferential treatment......Page 145 D. Conclusion – A continually rising standard......Page 146 Bibliography......Page 147 Prevention Through Updated Regulations and Sanctions: The French Experience......Page 148 A. Summary......Page 149 Nature and characteristics of the offence......Page 150 Regulations regarding elections: ineligibility and incompatibility......Page 153 Financial transparency in politics......Page 154 Statutory rules......Page 156 Specific rules......Page 158 Movement of public servants to the private sector (“pantouflage”): a risk factor......Page 159 Membership and procedure......Page 162 Precedents......Page 166 Public sector research......Page 168 E. Conclusions......Page 169 Bibliography......Page 170 Building a Coherent Framework at the Federal Level: The German Experience......Page 172 Civil servants......Page 173 Public employees......Page 174 Civil servants......Page 175 Members of the Government......Page 176 At-risk area: private activities......Page 177 D. Putting laws into practice......Page 178 E. Recent developments and emerging issues......Page 182 Notes......Page 183 Managing Conflict of Interest in a Decentralised System: The New Zealand Experience......Page 184 B. The legal framework......Page 185 Transparent appointment processes......Page 186 Disclosure of serious wrongdoing......Page 187 Identifying conflicts of interest......Page 188 Avoidance and disclosure......Page 189 Resolving conflicts of interest......Page 190 E. Responsibilities and penalties......Page 192 Legal penalties......Page 193 F. Future work......Page 194 Notes......Page 195 Managing Conflicts of Interest in Transition Economies: The Polish Experience......Page 196 A. Emerging challenges in the transition period: Historical context of the conflict-of-interest policy......Page 197 B. Definitions and core principles......Page 198 C. Specific policies for particular categories......Page 199 D. Incompatibility and potential conflict-of-interest situations......Page 200 Disclosure of private interests......Page 202 E. Implementation measures and their assessment......Page 203 F. Recent developments and emerging areas......Page 206 G. Conclusions......Page 207 Notes......Page 208 Annex 1. The Definition of Conflict of Interest......Page 209 Annex 2. Documents Stating the Principles and Rules of the Conflict-of-Interest Policy......Page 213 Annex 3. The Order 114 of the Prime Minister of 11th October 2002......Page 215 The Exclusiveness Principle in Practice: The Portuguese Experience......Page 220 B. Constructing a comprehensive legal framework......Page 221 C. Putting the exclusiveness principle into practice......Page 223 D. Disclosure: An effective supporting mechanism......Page 227 E. Strong enforcement......Page 229 Notes......Page 230 Managing Conflict of Interest in the Executive Branch.........Page 232 B. Introduction......Page 233 C. Building frameworks: Shifting the emphasis from prosecution to prevention......Page 234 Enforceable standards......Page 237 Box 23. General principles for the United States Executive Branch......Page 239 Publicly available and confidential financial disclosure reports......Page 243 Systematic training and counselling......Page 246 Effective enforcement mechanisms......Page 247 E. Recent developments: Challenges and directions......Page 249 Notes......Page 250 Conflicts of interest have become a key issue in public debate world-wide. New forms of conflict between individual private interests of public officials and their public duties arise as the public sector has become increasingly commercialised and works more closely with the business and non-profit sectors