Supporting water sanitationand hygiene services for life

Cor Dietvorst, 17 May 2016Updated 15 June 2016.

Doing the right thing – ethics at work“So What for Lunch?” presentation

Outline

1. What are ethics?2. Ethics at IRC3. Ethical fundraising review4. Ethical risks5. Feedback

Spinoza

What are ethics - 1?

“Systematizing, defending, and recommending concepts of right and wrong conduct” (Wikipedia)

Professional / business ethics: conduct of individuals and entire organizations.

What are ethics -2 More than compliance & transparency

Compliance – laws & regulations – penalties – loop-holes, calculated risksTransparency – (voluntary) standards – reputation damage – self-reporting, value neutralProfessional/business ethics – value-based, non-economic, moral principles Example: Until 2004 bribes tax deductible for NL companies working abroad

What are ethics - 3 Ethical/accountability codes

Development• INGO Accountability Charter• Core Humanitarian StandardBusiness• UN Global CompactResearch• Ethics in community-based par

ticipatory research

• Ethical Research Involving Children (ERIC)

• Research Ethics Guidebook

Water• Water Ethics Charter• CEO Water Mandate• WaterAid

Global Ethical Standards & Policy

Finance• Ethical Fundraising• Triodos

Minimum Standards and Exclusions

What are ethics – 4Ethical investment “forbidden sectors”

Fossil fuelsNuclearConflict mineralsGenetic engineeringFactory farmingToxics

PorkFinancial

servicesMedia /Leisure

Weapons

Gambling

Alcohol*Porn

Tobacco

What are ethics – 5Triodos Bank – ethical standards & exclusions

Excluding investments with potential negative impact on people or planetCategories• Nature & environment• Human rights• Governance#• Other controversial sectors (weapons, gambling,

alcohol*,pornography, tobacco)# High rcorruption isk industries - Construction Materials, Building Products, Electric Utilities, Multi Utilities, Independent Power Producers & Energy Traders*without responsible drinking policy

Ethics at IRC - 1 : existing instruments

• Values and principles (IRC Manifesto)

• Code of Conduct (HR Manual)

• External Complaints Policy

• (Draft) Anti-Corruption Policy

• Ethical Fundrasing Guidelines

Ethics at IRC - 2 : Ethical Fundraising

Policy, guidelines, criteriaCriteria1. High risk sectors*: Human rights, Water pollution/

overexploitation, Corruption/ tax evasion2. Blacklisted for 13. Do other WASH organisations accept money 4. Convictions/out-of-court settlements past 5 years for 15. Public campaigns for 1 in past 5 years6. Negative reporting for 1 in past 5 years*“Forbidden sectors” – Arms trade, Nuclear energy, Water pollution/overexploitation, Land grabbing, Third World marketing – dropped after review

Ethical fundraising review

19 reviewsGo Ahead*: Arcelor-Mittal, H&M, Helmsley Charitable Trust, MasterCard Foundation, Oak Foundation, Siemens, Swarovski, Voss Foundation, WaterlooGo Ahead (disputed):2 donorsCaution**: 5 donorsNo go: 3 donors*Meet criteria, verifiable mitigation measures in place to reduce risks** Partially meet criteria, mitigation measures unproven

Ethical risks for IRC

• Increasing dependence on restricted funding & market-based services (consulting, project management) – pressure on independent think-tank role

• Supply-side (donor or lead contractor) rather than demand-side (national institutions) accountability

• Flexible/poorer labour conditions: country staff, consultants, associates, interns (students, graduates)

• Corporate vs evidence-based communication: outcome “pimping”

EXAMPLE PRESENTATION TITLE

Questions and feedback

Question: Why does Triodos Bank consider alcohol “unethical” [Slide 7/8)]? Answer: this is only the case for brewers without “ responsible drinking” policies.Question: All multinationals evade taxes, so does this imply we can never accept funds for them [Slide 10]?. Answer: Ethically speaking, “everybody does it” is not a valid argument. IRC ‘s public finance campaign lacks credibility if we accept funding from companies that don’t pay their fair share of taxes. Acceptance of tax avoidance is quickly diminishing – see the recent London Anti-Corruption Conference.Feedback: Couldn’t FBDU focus more on targeting ethically cleared funders, saying “IRC recognises you as an ethical funder” to increase our chances? Can we collaborate with the Water Integrity Network (WIN) to promote ethical fundraising?