Attribute 10: Conduct and Disciplinary Standards

The Need to Establish Standards

Standards define the rules. They set the ethical environment. They enable judgements to be made as to what is and is not acceptable. They define penalties and provide a clear guide as to how to proceed when the standards are breached. None of this should be assumed. It needs to be clearly set out and well understood by all.

Agencies must therefore develop appropriate standards of conduct and communicate them to employees, suppliers, customers and the community at large. Room for improvement existed in terms of this attribute in 42% of agencies surveyed.

A clear message must be sent that fraud against the agency either from within or outside is unacceptable and that offenders will face action.

The Nature and Scope of Standards

Various general/minimum standards of conduct and discipline are prescribed on a service-wide basis. However, these may need to be made case-specific to be of maximum clarity, effect and benefit to particular situations in particular agencies. For example:

1. with regard to standards of conduct, removing left over or scrap materials from areas of building activity may be an action which employees might not otherwise consider was inappropriate unless it is specifically defined for them. Likewise, the removal of empty pallets, drums and containers.
2. with regard to standards of discipline, agencies may wish to develop policies and procedures concerning restitution from employees who have committed fraudulent acts.

Conduct and discipline standards should cover all categories and all classifications of employees within an agency. Standards should also extend to contract employees as well as to private contractors; suppliers; consultants; any agents of the agency in any form; and any persons that may associate themselves with the operations or functions of the agency.

Standards of Conduct

The development, documentation and distribution of a code of conduct is considered to be a necessary initial step in the process of setting the ethical and behavioural standards of the agency. Other forms of documentation will also likely be required such as personnel or procedure manuals (to give full and proper coverage at the level of detail required); staff bulletins and circulars (to communicate effectively) and so on.

Codes of conduct are nothing new. However, their importance and character has received renewed attention in recent times. As a guide, a code of conduct could include the following:

• to whom does the code apply
• knowledge of the code
• principles underlying the code
• accountability
• relevant legislation and charter
• illegal activities
• corrupt practices
• reporting illegal or corrupt practices:
  • within the agency
  • externally.
• personal and professional conduct:
  • general
  • identification
  • dress and grooming
  • maintaining work areas
  • treatment of clients
  • providing information to clients
  • use of official information
  • conflicts of interest
  • public comment
  • use of the agency's name
  • confidentiality
  • respect for the rights of others
  • equal employment opportunity
  • gifts and gratuities
  • use of drugs and alcohol.
• use of the agency's resources:
  • use of facilities/equipment/vehicles
  • access and security
  • private telephone calls
  • use of private vehicles.
• use of client resources
• private employment and honorary voluntary positions
• post separation employment
• political work or interests
• breaches of the code and disciplinary standards.

This list is not intended to be exhaustive or mandatory, and each agency should consider its own needs and situation. Codes must be reviewed regularly. A full formal review at least every two years is suggested. However, ongoing modification is also vital to keep pace with any improper practices which come to notice either within the agency or elsewhere. For example, published reports by the ICAC may provide ongoing useful information.

Standards of Discipline

NSW public sector agencies should consult the Public Sector Management Act and the Personnel Handbook. The Handbook contains extensive sections on all aspects of disciplinary proceedings. A selected index of relevant items from Division 3 Part 2 of the Handbook is provided below.

In terms of disciplinary policy and practice the following extract from the Personnel Handbook is particularly pertinent:

as a matter of policy, a department Head should not accept the resignation of an officer under section 37(1)(c) of the act if the officer is under adverse notice for conduct which would warrant dismissal and which involves dishonesty or any other type of behaviour which, in the public interest, should disentitle the officer to present himself or herself to a prospective employer as a person who has resigned from his or her previous employment (with an implied record of satisfactory service) rather than a person who has been dismissed for misconduct.

An employee charged with misconduct was allowed to resign. The agency was happy that the employee would be quickly removed from the place of employment. Adverse publicity would be avoided as would the time and cost involved with the disciplinary process. The individual went on to commit further fraud at another place of employment. The agency was considerably embarrassed and a threat of possible legal action against it had to be considered.

Where individual agencies may seek to set their own standards of acceptable conduct and discipline care will need to be taken to ensure such standards are consistent and compatible with other relevant legislative and industrial instruments (including awards, agreements or contracts of employment) which may specify particular standards, penalties or procedures to apply to certain situations. Appropriate policy and/or legal clarification and advice should be obtained before adopting any unique or unusual measures.