integrity management course john boyd presentation[1]

8/2/2019 Integrity Management Course John Boyd Presentation[1]

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Integrity Management

Ensuring Organizational

Compliance


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Health and Safety

Exits Facilities

First aid

Biological breaks


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Segment Outline

Objective:- Tools to support managementresponsibility for the behavior of others applicable

in private or public sectors

Evolution of the tools

References Key components

Development of the plan

What next?


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Modus Operandi

Maximizing your benefits Short presentation

Q&A period

Development of personal plan

Exercises Personal commitment

Discussion

Rules of Engagement

Respect Participation

The 1% probability


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Use of course materials

FIDIC grants to the attending participants the right ofpersonal use, or use for instructional purposes, of

any or all of the materials presented in this coursesubject to the requirement to identify FIDIC as thesource of the materials.

The materials may be reproduced without furtherlicense for the above purpose

Ownership of these materials is retained by FIDIC

Participants intending to use the materials for publictraining are encouraged to contact FIDIC to arrangefor updated materialswww.fidic.org
http://www.fidic.org/http://www.fidic.org/


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A brief history.

FIDIC is 1990s focus on corruption

OECD work driven by 1st world agenda

1997 OECD Convention

FIDIC 1998 focus on integrity develop BIMS

Training guide in 2002

Model representatives agreement

GPIMS in draft 2008


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Currently.

MDB Activities Punishment vs. prevention

Cross debarring

Red flags development

Companies enrolled Trial of GPIMS

Users group

OECD submission

Companies selectively blackballing clients


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The three sides of corruption

The demand side The supply side

The condoning side

Real progress requires:-

Unanimity in the construction industry Integrity demands and behavior modification from clients

Financial acuity from the lender


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Scope of Integrity

Bribery payment made to unduly influence Extortion threats made to unduly influence

Fraud misrepresentation

Collusion cooperation amongst competitors to

unduly influence


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Key Principles

Integrity must be managed Leadership at the highest levels

Inclusion of all staff

Process systematic approach

Documentation continuous

Review and Improvement auditing, examinationand reporting of results, systems improvement

Relation to quality control procedures


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IM System Development


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Exercise One

Development of Code of Conduct

Integrity Defined


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Code of Conduct

In order for all members of an organization tounderstand the behavior that is expected of them,

and more importantly the limits of that behavior, acode of conduct must be established and agreed atthe highest level. This is the first step in developinga business integrity management system whetherfor a private or public organization. Typically, suchcodes are structured in terms of the stakeholders ofthe organization and reflect its values.


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Exercise

Use the following structure for a code of conduct tobe developed by each group

Social responsibility

Responsibility to the organization

Responsibility towards clients

Responsibility to staff

Responsibility to the industry


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Conflicts with legal dept

Tendency towards puffery in wording of codes ofconduct

Does code of conduct imply a higher standard ofpractice?

Statements in code of conduct need to be clear andunambiguous.

Codes of conduct will evolve over time iewhistleblower provisions


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Appointment of leader/team

Direct report at highest level Can include outsiders

Influence required for success

Message of significance

Support for difficult decisions Ability to survive honesty

Initial focus on design


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Policy statement

The concept, approach and objectives of a firm withrespect to business integrity as formally defined and

expressed by management

Objectives

Approach Roles and responsibilities

Reviewing/Documentation

Reporting

Updating

Significance

Board level approval


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IM System requirements

Influences on form of integrity system Geographic location (TI Corruption Index)

Structure

Geographic branch

Organizational functional departments

Scope of activities of organization

Legal and cultural environment

Alliances/relations to other entities


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Review of Current status of IM

Current practices Reputation of organization

Existing IM systems

Financial controls/audits

Potential to update Existence of QA system


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Communications Issues

Honesty Clarity

Issues

Guidance

Dialogue

Repetition

Consistency

Credibility


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Detailed IM Policy Document

Fleshes out the policy document Translates behavior expectations into common

practice

Requires discussion/involvement of all staff first

steps in staff engagement Anchors the concept in the mind of every staff

member

Linkage with Core Values of Organization


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Detailed IM Policy contd

Individual behavior on discovering malfeasance Coverage of key subject areas:

- social responsibility

- compliance with laws

- impartiality

- confidential information

- conflict of interest

- misleading accounting practices

- giving/receiving gifts

- responsible use of property

- application to third parties


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Components of an IM System Toolkit

Three kinds of system approaches Forensic auditing (catching after the event)

Red flags

Avoidance through organization (delegating responsibilityand authority pre-identification of the perpetrator)

Personal performance review component

Standardized procedures (prevention by system)

Integrity procedure audits

Integrity management practices should be described

for every key process in the organizations operation


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Systems review

Examine current practices of organization to identifyevery key process

For each process

Determine how the wrongdoing would show up in therecords of the organization

Identify additional records that could be used to make thewrongdoing more apparent

Identify steps to be taken in the auditing process to detectwrongdoing

Identifying persons responsible for integrity in operations Identify systematic actions to be taken to avoid wrongdoing


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IM Systmes Development


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Critical Projects vs All Projects

IM systems cost to implement Balance required

Selection of higher risk activities/projects

Routine random selection of others

Characteristics of a high risk project

Location

Size

Client characteristics other factors?


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Exercise Two

Conflict of Interest

Integrity by Avoidance


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Conflict of Interest

One of the most common dangers to integrity in theconstruction business is the existence of situations

which threaten the objective and unbiased behaviorof the parties towards one another and oftencompromise the confidentiality of information held

by one or more of the parties. In your groups list thetypes of conflict of interest that may be encounteredin your type of organization and devise methods tocounter such situations.


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Integrity control methods

Identified procedures to be followed to minimize riskof infractions paper trail

Typically identifies

Applicability and responsibility

Reference authority

Precursor activities

Actions to be taken

Monitoring

Documentation

Example Integrity Control Document


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Exercise Three

Prequalification

Integrity by Design


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Example - Prequalification

Circumstances of applicability Responsibility

Reference authority

Leading steps

Process description Documentation

Monitoring

Reporting


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IM Systems Development


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Implementation Tools

Code of Conduct Business Integrity Policy

Definition of roles responsibilities and authority (theteam)

Business integrity procedures for the mainprocesses

Accounting structure

Enforcement measures

Declaration in the annual report


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Training

The Board The IM team

Project managers

The staff

The auditors (internal) External auditors


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Review and revision

Senior review on a regular schedule Regular updating to accommodate changes in

organization

Updating from lessons learned

Careful version control so only current processesare used by organization staff


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The final word.

Straightforward approach incorporating Logic

Continuous improvement

Ethical considerations

Warning this may be revolutionary

Leads to questions of

Where we should be

Who we should deal with

What kind of work we should do

Also leads to A safer and better environment for everyone

Happier staff

A more sustainable organization

integrity management course john boyd presentation[1]

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