2. HR and integrity management: Do you really know the people working for you? Associate Professor David Kimber School of Management, RMIT Email: davidk@rmit.edu.auPhone: 9925-5578

4. Approach to research

5. Individual perspectives on integrity Personal understanding –Doing what you say you’ll do; reliability; fulfilling responsibilities –Maintaining a good reputation –Honesty and transparency –Respect and dignity –Consistency, fairness and reasonableness –Building relationships –Openness –Leadership Assessment by organisation – How is it assessed at point of recruitment

6. Organisational ‘fit’ and integrity Theme 1: “I don’t care how you do it, just get it done!” –Recruit for skill, competence, drive and enthusiasm – not necessarily integrity Theme 2: “You’re part of the team. Stay a part of the team!” –Recruit for communication, team spirit, liaison ability etc. – not necessarily integrity Theme 3: “Question how we do things if they make no sense to you!” –Recruit for independence, character, questioning / inquiring mind, etc. - likely to imply integrity

7. People who threaten integrity in organisations Benjamin’s model –moral chameleons anxious for acceptance and to avoid dispute, ‘blow with the wind’, ‘no backbone’ will abandon ‘previously avowed principles in order to placate others’ –opportunists continually move on from initial moral positions to gain short term advantages for themselves –hypocrites ‘one set of values for public display, another that they keep hidden’ –self deceivers Such people often espouse high integrity behaviour and fervently believe they uphold their well intentioned values, without being aware that their actions suggest otherwise

8. Model on fraud

9. Organisation perspectives Leadership –reality & self deception Human Resources –Integrity evaluation primarily intuition & reference checks - seldom directly addressed as selection issue –Values training at induction. –Performance reviews and remuneration seldom directly linked to values –Difference between small & large organisations

10. A Business Integrity Systems framework

11. Implications Relationship between BIS and organisational failure - increasing risk Organisations need to develop a pro-active, holistic, integrated perspective to BIS Impact of organisational decision making on personal integrity needs to be more consciously addressed

12. Key lessons for HR professionals Recruit/select for all capacities –Competence, –Connectivity, and, most of all, –CHARACTER Integrate integrity systems thinking into all aspects of HR management, training, performance appraisal, and promotion. Work to ensure this area is kept in the forefront of senior executive’s minds - must come from the top.

13. Scenario 1 You and a divisional manager are currently conducting an interview with a close friend of yours who has applied for a job in your organisation. You know (s)he failed a few subjects in her/his recently completed university degree. When you go through the application documents you find the academic transcript from the university does not show the failed subjects. You realise it is a carefully doctored copy. The manager is very impressed with your friend’s appearance and her/his enthusiastic responses to all questions asked. However you are aware (s)he has skilfully avoided questions which sought details of work experience in the area required. You have a sense the manager is just about to offer her/him the job. What do you do?

14. Scenario 2 You have just attended a sales staff meeting to discuss recruiting strategies for a new group being set up to undertake a ‘direct contact telemarketing’ campaign. You suggested ethics guidelines should be considered as part of their training. The sales manager is very dismissive, saying these people are being recruited on a short term commission only basis, and this would be a waste of time and resources. He adds “It would probably reduce their capacity to get sales, so why would we want to do it?” You now are back in your office quietly fuming about the sales manager’s attitude. What do you do?

15. Further Information For further information regarding this topic please refer to the Business Integrity Systems in Australia website http://www.transparency.org.au/documents/Bisareport.pdf