Ethics and Integrity in UN Procurement United Nations Procurement Division

2 Objectives 1. Remind us of the basic duties of UN staff members and renew our commitment to the UN’s core values. 2. Clarify ethical principles in the context of the UN procurement process. 3. Highlight the impact of unethical behaviour on the procurement process and the Organization. 4. Learn how to handle ethical dilemmas and share best practices.

3 Context: Why focus on Ethics?  Increased business volume => higher pressure  Added scrutiny (due to recent cases of misconduct)  No matter how seemingly insignificant, a breach of ethics affects credibility, which is difficult to recuperate  Impropriety can harm the reputation of the Organization

4 Demonstrating Integrity Upholding the principles of the UN Charter Upholding the principles of the UN Charter Demonstrating the values of the UN in daily activities and behaviour Demonstrating the values of the UN in daily activities and behaviour Acting without consideration of personal gain Acting without consideration of personal gain Resisting undue political pressure in decision making Resisting undue political pressure in decision making Not abusing power or authority Not abusing power or authority Taking prompt action in cases of unprofessional or unethical behaviour Taking prompt action in cases of unprofessional or unethical behaviour

5 An Ethical Code helps to answer the questions …  WHAT SHOULD I DO ?  WHY SHOULD I DO THAT?  SPIRIT OF THE LAW vs. LETTER OF THE LAW

6 Diversity of Cultures = Diversity of Perspectives Plural world Different backgrounds Different understanding of ethics Although we must respect diversity, we also must find common ground when working together at the UN

7 Common Ground for Ethical Behaviour at the UN: UN Charter (Chapter XV, Article 101; signed in 1945) UN Staff Regulations (Art. I) and Rules (Chapter I), incl. Oath of Office Standards of Conduct in the International Civil Service (1954, revised in 2001) Status, Basic Rights and Duties of UN Staff Members (2002) Excerpts of UN Charter Relevant Staff Regulations and Rules Standards of Conduct in the International Civil Service (revised version of 2001)

8 UN - Oath of Office “I solemnly swear (undertake, affirm, promise) to exercise in all loyalty, discretion and conscience the functions entrusted to me as an international civil servant of the United Nations, to discharge these functions and regulate my conduct with the interests of the United Nations only in view, and not to seek or accept instructions in regard to the performance of my duties from any Government or other authority external to the Organization.”

9 Seasonal gift Exclusive dinner with partner Expensive gifts for hobby Nice business travel Amount of money Close Co-operation Courtesy Free Services Holiday trip Corruption Right to get money Business dinner Spiral of Ethical risks

UN Procurement Training Barriers to Making Sound Ethical Decisions External Forces: Political pressures Political pressures Organizational structures Organizational structures People follow group norms People follow group norms People fulfil assigned roles People fulfil assigned roles People do what they are told People do what they are told People do what’s rewarded and avoid what’s punished People do what’s rewarded and avoid what’s punished

11 Ethics versus Compliance EthicsCompliance Objective Encourage responsible conduct Prevent misconduct StandardsSelf-imposed Externally imposed Motivation Self improvement Avoid penalties Reinforcements Personal responsibility (What should I do?) Legally driven (What I can’t do)

12 Zero Tolerance Policy for Gifts and Hospitality  Gifts from suppliers must not be accepted, regardless of the value  Gifts must be returned and supplier informed that UN staff are not allowed to accept gifts  Offers of hospitality (e.g. drinks, lunches and dinners) must be declined  Invitations of a social kind – sporting/cultural events, holidays etc. must always be refused

13 Best Practices When Working with Suppliers  Decline to meet with prospective bidders one on one during a procurement action.  Business should be conducted during normal working hours.  Visits /meetings with suppliers should be with a minimum of two UN staff.  Suppliers should not be invited to UN staff offices but to meeting room instead.  Meetings should have an agenda and minutes.

14 Post Employment Restrictions  The UN has established restrictions on employment of (former) UN staff who have been involved in the procurement process as per bulletin ST/SGB/2006/15.

15 Conclusion - What Can We Do? Know UN regulations, rules and procedures, including the “spirit of the law”. Know UN regulations, rules and procedures, including the “spirit of the law”. Know and apply the organization’s ethical values. Know and apply the organization’s ethical values. Be self reflective and when in doubt, ask. Be self reflective and when in doubt, ask. Openly discuss difficult situations and examples of good behaviour. Openly discuss difficult situations and examples of good behaviour. Stay alert to barriers to good ethical behaviour. Stay alert to barriers to good ethical behaviour. Help create a culture of ethical behaviour. Help create a culture of ethical behaviour. Take a self-test: Integrity Awareness Initiative ( Take a self-test: Integrity Awareness Initiative (

16 Key Contacts Key Contacts Ethics Office / Ethics Helpline: +1 (917) OIOS Hotline : + 1 (212)