ANNUAL PRACTICAL ETHICS TRAINING Presentation by: CPA Dr. Charity Njoka 8th November 2018

ETHICAL DECISION MAKING PROCESS Why care about ethics? What makes an issue an ethical issue? Does it matter whether we are in the private or public sector while confronting the unethical issue(s) What procedures exist (if any) for ethical decision making?

WHY BE ETHICAL? Positive image of the public service PUBLIC SECTOR Positive image of the public service Enhanced service delivery Citizen confidence in the public service Investor confidence Efficient, effective utilisation of resources.

WHY BE ETHICAL(II) Improve financial performance PRIVATE SECTOR Improve financial performance Reduce operating costs Enhance corporate reputation Increase ability to attract and retain employees

ETHICAL ISSUES ASSIGNMENT Ethical issues- Not clear due to overlap with law. Some unethical issues are also illegal. But can be said to be those issues, distinct from political, legal or social, that are concerned with right and wrong actions and outcomes for both individuals and the organizations they work for(.xxx ) Grey areas exist: At what point does a gift become a bribe? Feedback and Implications from the Assignment results

ETHICAL DECISION MAKING PROCESS Summary Describe the problem Determine whether there is an ethical issue or an ethical dilemma Identify and rank the key stakeholders and the consequences Review any applicable Code of Ethics Determine the options Select a course of action Put your plan into action.

PROBLEM, IS IT AN ETHICAL ISSUE? What is the issue all about? Financing, performance, corruption, employment etc? Is the issue an ethical one or dilemma one? Paying dividend and increasing employees salary can be a dilemma issue whereas employing a relative who has te requisite qualifications may be an ethical issue

KEY STAKEHOLDERS AND CONSEQUENCES Who is affected by the issue? Who are the primary parties nad secondary parties affect by the issue? Your consideration should be directed first to the primary stakeholders . What are the consequences( current and foreseen)? Are they long term or short term? Put yourself in the shoes of the stakeholders

OBLIGATIONS AND ACTIONS What does the relevant code of ethics, law provide for? What about you as an officer? Check your integrity. Identify several courses of action and select one . See through the consequences of your actions for all possible actions

DIVERGENCE OF ETHICAL DECISION MAKING IN PRIVATE VS PUBLIC SECTOR AFFECTED BY 1) Profit orientation (Public sector generally not for profit) 2 Stakeholders ( individuals, groups, public) 3) Size (Public organisations are large and provide a number of different functions) 4) Regulation ( Generally public sector regulates itself) 5) Bureaucracy ( Public sector is highly bureaucratic)

CONVERGENCE OF ETHICAL DECISION MAKING FACTORS PROMOTING; Transformation in the Public sector-Becoming performance oriented e.g schools, policing, commercialized parastatals etc Compliance approach- Rules and regulations to curb unethical behavior Codes of conduct and ethics e.g The Public Officer Ethics Act, 2003, Mwongozo 3) Integrating approach – Use of training, education and the integrity of the individual 4) Anti-corruption agencies e.g EACC

THANK YOU INTERACTION SESSION

Contacts CPA Dr Charity Njoka Consultant and Lecturer Emails: charitynjokaku@gmail.com/ njoka.charity@ku.ac.ke Cell number: 0722 376 412