HomeMy WebLinkAboutBZ Ethics presentation 2011 (2)What is Good and What is Right:
Ethics in Montana Municipal Government
Betsy J. Webb
Associate Director
MSU Local Government Center
December 2011
Ethics Resource Center
Well-implemented ethics and compliance programs double reporting and lower the rate of misconduct
A strong ethical culture also increases reporting and cuts misconduct in half
When both a well-implemented ethics and compliance program and a strong ethical culture are in place, misconduct drops by 60% and reporting rises by 40%
(ERC, 2008 and 2010)
Comprehensive Ethics
and Compliance Program
6 components:
Ethics training for all employees
Code of Conduct or Code of Ethics in Place
Evaluation of ethical behavior as part of regular performance appraisal
Mechanism to report misconduct anonymously
Mechanism to discipline employees
Mechanism to seek advice about ethics-related matters
2008 City Charter, Bozeman, MT
The city commission shall …establish an
independent board of ethics …(and) provide
annual training and education of city officials,
city boards, and employees regarding the state
and city ethics codes.
Art. VII Sec. 7.01(a)(b) Jan. 1, 2008
Ethics Handbook
•600 City officials,
employees, board
members
•Two years of training
completed; 2009 in-
person/live training,
2010-2011 on-line
course
Bozeman: 37,280 population
Annual ethics training for employees, elected, appointed officials
Code Ethics – State and City-specific
Ethics Handbook
Evaluation of ethical behavior (city core values) as part of performance evaluation
Whistle-blower policy defined; mechanism to report ethical violations defined
Mechanism to discipline employees and independent Board of Ethics established
Ethics resource staff identified for guidance
Kalispell: 19, 927 population
Periodic training as needed. Group discussions in work areas as impacted.
Code of Ethics – State
Ethics covered in personnel handbook
As part of performance evaluation if issues are present
Mechanism to discipline employees
Research questions
1. Do employees of municipal governments with ethics and compliance programs observe a significantly lower rate of misconduct than municipal governments who do not have such programs in place?
2. Do employees of municipal governments with ethics and compliance programs demonstrate a significantly higher rate of reporting misconduct than municipal governments who do not have such programs in place?
Research questions
3. Do employees of a municipal government
with an ethics and compliance program in place
perceive the ethics program as effective?
4. Do employees of municipal governments with
ethics and compliance programs perceive a
stronger ethical culture in their work environment
than employees of municipal governments who do
not have a formal ethics program in place?
Study Significance
•129 cities and towns in Montana; 56 counties
•Informal survey
–75% of municipalities do not give new employees a copy of the Montana State Code of Ethics upon hire
–93% of municipalities provide no training on ethics to their employees (survey conducted by Survey Monkey, October 2011, emailed by list serve to 129 Montana municipalities, 45 responses or 35%)
•Findings can be incorporated into ethics program development across Montana and outside Montana
Methods
Research Design:
Perceptions of Ethical Climate survey
Pelletier & Bligh, 2006
Two First Class cities in Montana (over 10,000 pop)
–Bozeman – 346 employees
–Kalispell – 181 employees
–Random sample – 132 responded
–The sample size of 132 allows for a 95% confidence level and a
+/-7.4% confidence interval.
Survey
Factors Survey Questions Research Questions
Observations of Misconduct 1 1
Reporting Misconduct 2 2
Perceptions of ethics program effectiveness 35, 36, 37, 38 3
Ethics code awareness 4, 5, 6, 7, 8, 9 4
Perceptions of ethical decision-making processes 10, 11 4
Perceptions of ethical resources scale
Information 12, 13, 14 4
Time 15, 16, 17 4
Financial Resources 18, 19 4
Perceptions of informal ethical norms 20, 21, 22, 23, 24 4
Perceptions of ethical leadership 25, 26, 27, 28, 29, 30, 31, 32,
33, 34
4
Instruments/data analysis
•Instrument – electronic survey monkey or paper version
–38 items
–yes/no response (3 items)
–Likert scale response (35 items)
•Data Analysis
Independent-samples t test was used to determine if City of Bozeman employees differed significantly from City of Kalispell employees on the survey items
Results
•Reliability for the survey was calculated Cronbach’s alpha
was .939
•Significant findings:
–Perceptions of Ethics Program Effectiveness
t(69) = 4.357, p< .05, d = .87
–Perceptions of Ethics Code Awareness
t(123) = 3.194, p < .05, d = .57
–Perceptions of Ethics Resources Scale – Information
t(115) = 2.739, p < .05, d = .50
After 2 trainings…
Significant differences in
–Ethics Code Awareness (policy guides employees
in decision-making; have read the code;
understand the code; know the city’s ethical
expectations; know that policies exist)
–Ethics Resources (resources are available; easy to
get help; staff are available)
–Ethics Program Effectiveness (program is effective;
confidential manner; increased trust in city; city
concerned about ethical standards)
Results
•Not significant: Perceptions of Ethical Decision-
Making Process, Perceptions of Ethical Resources
Scales for Time and Money, Perceptions of Informal
Ethical Norms, and Perceptions of Ethical Leadership
•Not significant: Observations of Misconduct,
Reporting Misconduct
Bozeman 36%
Kalispell 31%
Results
Noteworthy: Positive
•low concern about retaliation if they did report
misconduct
•Employees in both cities demonstrated support for
their immediate supervisors (discuss ethical issues,
consult with them, good examples of ethical behavior)
•Employees in both cities rated the top leadership as
concerned with ethical practice (above neutral but
below somewhat agree)
•Both sets of employees believe that ethical concerns
are heard in their specific departments
Results
Other results:
–Employees leaned negative about whether the
city is willing to do the right thing no matter the
financial costs
–They also leaned negative about whether the city
rewards employees for ethical behavior
–Employees from both cities were close to neutral
about personnel decisions (hiring and promotions)
reflecting ethical principles.
Observed Misconduct, Reported
Misconduct, Received Training
Bozeman:
Kalispell:
Comparing Bozeman and Kalispell
Ethics Code Awareness
6 items
BZ mean = 5.76
Kalispell mean = 4.75
Significant difference
Perceptions of ethical
decision-making process
2 items
BZ mean = 5.61
Kalispell mean = 5.31
No significant difference
Comparisons
Perceptions of ethical
resources scale –
information
3 items
BZ mean = 5.20
Kalispell mean = 4.35
Significant difference
Perceptions of ethical
resources scale – time
and finances
3 items and 2 items
BZ mean = 5.41 and 4.12
Kalispell mean = 5.20 and
3.70
No significant differences
Comparisons
Perceptions of informal
ethical norms
5 items
BZ mean = 3.85
Kalispell mean = 3.67
No significant difference
Perceptions of ethical
leadership
10 items
BZ mean = 4.97
Kalispell mean = 4.90
No significant difference
Comparisons
Ethics program
effectiveness
4 items
BZ mean = 4.14
Kalispell mean = 3.6
Significant difference
Bozeman lower means
•The City rewards employees who exhibit ethical
behavior, BZ mean = 3.23
•The City is willing to do the right thing no matter
the financial costs, BZ mean = 3.84
•Personnel decisions reflect ethical principles, BZ
mean = 4.13
•The Ethics Program is effective, BZ mean = 4.16
•Moral concerns are given top priority by the City’s
top leaders, BZ mean = 4.25
•If I were to have an ethical concern, I know I would
be supported by the City, BZ mean = 4.35
Conclusions
•Employees need to be provided with appropriate tools and
models to align their behavior with the organization
•Significant differences were demonstrated (and should not
be minimized), the differences did not translate to behavior
or to the overall culture
•Look at the important role of leaders in creating and
maintaining ethical culture in municipal governments
Future research recommendations
•Separate trainings for
managers/supervisors/leaders? Specific focus
on the primary role of leaders in building an
ethical culture
•Building an ethical culture in municipal
government, what works?
•When does an ethics program translate into
results?