Good governance & gifts
Good governance has become a global goal for governments, business enterprises and non-profit organizations as it has been postulated that practicing it will lead to national development and the eradication of poverty, sustainable growth for business and industry and increase in credibility of community and nonprofit organizations.
The main characteristics of good governance are accountability, transparency, adherence to the rule of law, responsiveness, equity and inclusiveness, effectiveness and efficiency and participatory. Institutions in the three sectors mentioned earlier have the obligation to report, explain and be answerable to the consequences of decisions made. The decision-making process should be clear to all stakeholders. These decisions should be consistent with relevant legislation or laws and meet the needs of the stakeholders in a timely, appropriate and responsive manner. The stakeholders should feel that their interests have ben considered in the decision-making. Decisions result in making the best use of people, resources and time for the best possible results. Anyone affected by the decision should have the opportunity to participate in the process of making that decision.
In good governance, it is important that the decision maker is seen and in reality free from conflict of interest or having been influenced by external factors. It is in this light that good governance codes and programs have specific portions related to hospitality and gifts. In this season of Christmas when gift-giving and receiving are so prevalent, it may be worth looking at practices that put gifts in the proper perspective.
The Government of Western Australia’s Good Governance Guide has provisions on gifts, benefits and hospitality. “While offering and accepting gifts, benefits and hospitality is common in everyday life, there can be good reasons for public sector board members to decline to accept such offers... these may be a token of appreciation and carry no expectation… accepting... could give the impression an officer will favor a particular person or organization… this may not be the intention but perceptions do matter.”
Thus the board members are advised to carefully consider any offers of gifts, benefits or hospitality and ensure that any decision to accept is done openly, placed on record, and is consistent with the code of conduct, conflicts of interest policy and gifts, benefits and hospitality policy. It specifies that a board should: 1) not accept gifts, benefits or hospitality if it is likely to place the board under an actual or perceived financial or moral obligation to others or be seen by the public to cause the board to act in a particular way or deviate from public duty principles; 2) maintain a register of all gifts, benefits and hospitality accepted, ensuring that these are only of token value; 3) not demand or accept in connection with official duties any fee, commission, reward, gratuity or remuneration of any kind that is outside the scope of entitlements; and 4) not use public position for personal profit or gain or to cause detriment to others.
I am familiar of a Philippine enterprise that follows strictly a “no gift” policy and monitors these including having a whistle-blower system. This is not just for Christmas but for thought-out the year. Others allow acceptance of token perishable gifts normally of token value while some organizations accept gifts but raffle them off during the Christmas party. The controlling intent is to ensure that the giving party does not get the impression that such gifts will affect the company’s decision making.
Maybe for Philippine organizations, it is time to respond positively to the call of Joseph Annotti of the American Fraternal Alliance (a non-profit organization), “But more important than the threat of regulatory interest, isn’t giving your society the best possible chance at a successful future on your Christmas list? Without a foundation built on sound governance, your society will be competing armed only with rocks and clubs in a world increasingly driven by information and innovation. Start taking steps today to give your society the gift of good governance in 2018.”
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