Highway of Unintended Ethical Consequences

1. Highway of Unintended Ethical Consequences Paul Higgins, VCO Procurement Manager, DGS/DPS

2. What Does Ethics Mean to You?

3. Ethical Dilemma Process • Recognize and define the moral/ethical dilemma. • Specify the facts of the situation. • Identify the constituencies and interests that are involved. • Clarify and prioritize the values and principles at stake. • Formulate your options and provide the rationale to support your possible courses of action. • Identify the potential consequences of the various options.

4. What’s a Person To Do? “Ethics is knowing the difference between what you have a right to do, versus what is the right thing to do.” Supreme Court Justice Potter Stewart

5. 3 Ways to be Wrong (1) Violation of the Law It is wrong to: pass a stopped school bus with flashing red lights; it is wrong to take merchandise without rendering just payment; it is wrong to take a bribe offered by a vendor.

6. References • State and Local Government Conflict of Interests Act § 2.2-3100 et seq • Virginia Governmental Frauds Act § 18.2-498.1 et seq • Virginia Public Procurement Act: Article 1, General Provisions §2.2-4300 C and Article 6, Ethics in Public Contracting § 2.2-4367 et seq

7. Declaration of Intent2.2-4300 C. That public bodies obtain high quality goods and services at reasonable cost; That all procurement procedures be conducted in a fair and impartial manner with avoidance of any impropriety or appearance of impropriety; That all qualified vendors have access to public business; That no offeror be arbitrarily or capriciously excluded; That competition be sought to the maximum feasible degree;

8. Declaration of Intent2.2-4300 C. That procurement procedures involve open-ness and administrative efficiency. That individual public bodies enjoy broad flexibility in fashioning details of such competition. That the rules governing contract awards be made clear in advance of the competition; That specifications reflect the procurement needs of the purchasing body rather than being drawn to favor a particular vendor; and That the purchaser and vendor freely exchange information concerning what is sought to be procured and what is offered.

9. 3 Ways to be Wrong (2) Departure from the Truth It is wrong to describe that which is not in accord with the facts: i.e. calling in sick when you are not; claiming you do not play favorites when your actions indicate otherwise.

10. 3 Ways to be Wrong (3) Deviation from Moral Rectitude It is wrong to observe an action taking place you know to be wrong but not taking any action to intercede or become involved.

11. Where Are You? • Does one do the right thing because it is 2nd nature? • What are you doing about the ethical culture in your organization? • What are you doing about being a catalyst for ethical behavior in your agency?

12. Gift vs. Bribe • What is the difference between a gift and a bribe?? • Answer: It is the “intent” of the giver.

13. The Drawing of the Line Rests in 3 Places (1) With the giver of the bribe: What are the intended consequences and whom does the intent serve?

14. The Drawing of the Line Rests in 3 Places (2) Within the organization employing the person being bribed: What are the explicit rules and are they clear enough and restrictive enough to protect the employee from inadvertently being compromised?

15. The Drawing of the Line Rests in 3 Places (3) With the recipient himself/herself: Is the individual exercising due care and reasonable judgment to avoid being placed under an improper obligation?

16. Rules of the Highway Don’t assume that everyone knows all the laws, rules, and procedures that pertain to their job. Make sure they know them. Eliminate “ignorance of the rules” as an excuse for unethical actions.

17. Ethical Dilemma Process • Recognize and define the moral/ethical dilemma. • Specify the facts of the situation. • Identify the constituencies and interests that are involved. • Clarify and prioritize the values and principles at stake. • Formulate your options and provide the rationale to support your possible courses of action. • Identify the potential consequences of the various options.

18. THE ETHICAL SLIPPERY SLOPE • We tend to judge ourselves by our “intentions” rather than our “actions”. • Short-cuts resulting from our failure to plan. • Pressures from “above”. • Wanting to be perceived as a “team Player”.

19. The Procurement Smell Test • Perception is Reality • How Much Does it Take to Explain the Action? • How Will it Look on the 6 O’Clock News?