Why the future is workless
Predictions for the future of work are grim – depending on your point of view. Many of our jobs are being automated out of existence, but it looks like we’ll have much more free time.
Writer and Doctor of Philosophy, Tim Dunlop, says people and governments are going to have to rethink how we support ourselves when there isn’t enough paid work to go around.
Dunlop does not ascribe to the view often put forward by economists that technology will generate enough jobs to replace the ones that are destroyed by robotics and artificial intelligence.
“I don’t know if that’s necessarily true in the medium term… I think there’s going to be a really nasty transition for more than a generation,” says Dunlop, the author of Why the Future is Workless and The Future of Everything.
“We are going through this huge period of transition at the moment and we don’t really know where it’s heading. We’re at the bottom of the curve, in terms of what [new technologies] are going to be capable of.”
Dunlop says framing question around the future of work as “will a robot take my job?”, is reductive. Instead, we should be looking at what sort of job will be available and what the conditions will be for the jobs that are offered.
“If we are working less hours, or there is less work, or the economy just needs fewer people, and then we don’t have a technology problem, we’ve got a distribution problem,” he says.
The “hollowing out” of the job market means that middle-skilled jobs are disappearing because they can be automated. Trying to “upskill” people who have been displaced, or redirect them into jobs that need a human touch (such as caring jobs) is not an answer for everyone.
“Not everybody can have a high-skill, high-paid sort of job. You need those middle-level jobs as well. And if you don’t have those, then society’s got a problem.” he says.
Dunlop says one way of addressing the issue is a universal basic income: where everybody gets a standard payment to cover their basic needs.
“I don’t think you can rely on wages to distribute wealth in an equitable way, in the way that might have been in the recent past,” he says.
The idea of a Universal Basic Income has been around since the 16th Century and is unconditional – not based on household income.
In Australia, the single-person pension (now just over $24,000 per annum) might be seen as an appropriate level of payment, according to Dunlop, in an article written for the Inside Story website.
“It is basic also in the sense that it provides an income floor below which no one can fall. The payment is unconditional in that no one has to fulfil any obligations in order to receive it, and even if you earn other income you’re still eligible. That makes it universal, equally available to the poorest member of society as it is to the start-up billionaire,” he writes.
Much of the discomfort often voiced about such a scheme centres around the idea that people are being paid to “do nothing” and that it removes the incentive to work.
However, trials show that in developing countries, people use the money to improve their situation, starting businesses, sending children to school and avoiding prostitution. In Europe and Canada, people receiving the payment tend to stay in their jobs and entrepreneurship increases.
Trials of the Universal Basic Income are now taking place globally – from Switzerland to Canada to Kenya – but most are limited to the unemployed or financially needy, rather than being universal.
Dunlop says that, rather than worrying about whether people “deserve” the payment, we should accept the concept of “shared citizenship”. Whether we do paid work, or not, we are all contributing to the overall wealth of society.
Inequality comes when wealth gets divided up by those who do work that is paid and those who own the means of production. With a Universal Basic Income, everybody’s contribution is valued and people get a benefit from the roles they play in the formal and informal economy, he says.
So what will we be doing in the future if we are not doing paid work? Dunlop says we will still have our hobbies, passions and families – and we can derive just as much (if not more) meaning from those things as we do from our jobs.
We are already seeing evidence of efforts to reduce the hours of work, with companies trying four-day work weeks (paid for five), the Swedish Government trialling a six-hour workday, a French law banning work emails after hours.
Dunlop says a “work ethic” culture makes it hard for these reforms to succeed and unions tend to see a push for reduced hours as a “trojan horse” threat of increasing casualisation and insecure work.
“That’s where things like the French rule about emails probably comes in handy. It sets some parameters around what society sees as acceptable and maybe it needs some government leadership in this area.”
This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.
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BY The Ethics Centre
The Ethics Centre is a not-for-profit organisation developing innovative programs, services and experiences, designed to bring ethics to the centre of professional and personal life.
Can you incentivise ethical behaviour?
In the wake of the Financial Services Royal Commission, many employers are asking whether they should award bonuses to people who choose to do the right thing.
Boards and CEOs are discussing whether people need an incentive to make ethical decisions and how “ethical incentives” could avoid the risk of encouraging unintended behaviours.
Incentives have a tarnished reputation, with poorly-constructed programs blamed for driving a culture of greed in banks and insurance companies. The international anti-corruption organisation, Transparency International, says performance incentives should not just focus on getting sales, for instance, but also consider how those sales are achieved.
“ … incentive schemes should move beyond mere alignment with values and ethical codes and actively encourage ethical behaviour,” according to the authors of Transparency International’s 2015 report Incentivising Ethics: Managing incentives to encourage good and deter bad behaviour.
“This means that they should not be based solely on financial targets, but should contain non-financial targets that reflect and drive ethical behaviour. Ultimately, this mix of incentives should support the long-term sustainability and success of the company.”
Senior principal advisory at research company Gartner, Arj Bagga, says the Royal Commission has sparked many conversations with his clients, who want to know if they can use ethical behaviour as a measure in the “performance systems” they use to encourage the best work from their people.
A limit on rewards?
Bagga says they can – but within limits. Financial rewards or goods (such as restaurant vouchers) are only effective up to the value of $300, he says.
“Anything over $300 has an incrementally lower benefit on employee performance.”
The reason for this is that financial rewards are an “extrinsic” motivator, meaning that it comes from outside the person, and are much less effective than an “intrinsic” motivator (an inner desire).
“After $300, it starts to extrinsically motivate them too much, whereby they just associate ethical behaviour with financial reward, which is not what you want,” says Bagga.
“You actually want them to be intrinsically-motivated, because, if you remove the reward down the line, because of cost cutting or whatever it might be, employees will then stop acting ethically, just because they’re not being rewarded.
“What we want to do is have a balance between the intrinsic and extrinsic motivation.”
Recognition vs cold hard cash
The most intrinsic powerful motivator is recognition – commending people for their ethical behaviour. Such public recognition can increase employee performance by up to 3 per cent, he says.
However, the effect of that recognition can be supercharged by attaching a financial reward “which we found can increase performance by a further 5 per cent”.
While research has shown that the effectiveness of financial rewards can quickly fade, Bagga says the impact of the small reward can be sustained by using ethical behaviour as a measure in performance reviews.
Because their promotions depend on it, people will continue to try to display the desired behaviours, he says.
Making the right choice
A further question is how to identify ethical behaviour, when it is essentially just doing what would be expected of a decent person. Bagga says managers can reward those instances where people make ethical choices in situations where there is no clear answer.
This could be when, for instance, a salesperson sells a product that earns a lower commission, or no commission, but is a better choice for the customer.
Transparency International, while supporting the use of incentives, points out some of the risks around trying to identify and reward ethical behaviour: the measures are subjective, corrupt employees may be convincing actors, not all ethical acts will be recognised which could cause resentment, and discussion about behaviours may lead to some difficult performance review discussions.
Bagga says ethical behaviour is a good business strategy. If organisations can ensure their people recognise what ethical behaviour is, adopt an ethical mindset and then act upon it, they can increase employee performance by up to 12 percent, he says.
Short term pain, long term gain
Some employers may not be sympathetic to the idea their people forego revenue as they look for the best option for customers. However, Bagga says that view would be myopic.
“It may impact you in the very short term but, longer term, it will actually increase your brand awareness in the marketplace and it will increase your ability to attract talent,” he says.
“In Australia, specifically, ethical behaviour is one of the core reasons a person chooses to join an organisation.”
Australian survey respondents rank “ethics” and “respect for the organisation” higher than manager quality and future career opportunity when they are assessing career paths.
Bagga says that it is not just the financial services companies that are interested in the idea of “incentivising” ethical behaviour.
“I’ve also had conversations with mining companies and telecommunications companies, who are trying to get on the front foot of this and make sure they are bullet proofing themselves against any unethical behaviour that could occur in their organisations because they understand, through the Royal Commission, what the implications of those could be on the performance of their business and the perception of their brand.”
Cashless recognition
- Introducing ethics and values measures into performance reviews
- Good ethical conduct being a prerequisite for promotion.
- Spot awards for good ethical practice, recognising special contributions as they occur, usually over a relatively short-term period.
- Awards for people who speak up or challenge questionable conduct.
- Recognition and/or prizes for people who excel in ethics and compliance training.
- Recognition for outstanding contribution to the ethics and compliance programme.
- A company-wide ethics award scheme.
- Coverage of examples of good ethical or anti-corruption practice in the company newsletter.
- Thank you letters from the CEO or senior managers for people who display ethical behaviour.
- Dinner with the CEO as a prize for people who demonstrate ethical behaviour.
Source: Transparency International
This article was originally written for The Ethics Alliance. The Alliance is a community of organisations sharing insights and learning together, to find a better way of doing business.
This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.
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BY Fiona Smith
Fiona Smith is a freelance journalist who writes about people, workplaces and social equity. Follow her on Twitter @fionaatwork
How the Canva crew learned to love feedback
“How am I doing?” is a question that has helped graphic design platform, Canva, to become one of Australia’s most talked-about startups.
In May, the six-year-old company announced it had raised $70 million from US venture capital firm General Catalyst (valuing Canva at $3.6 billion) and acquired two stock photography firms.
Its workplace culture has also received acclaim – with top employer awards from Great Place To Work and LinkedIn last year – and its workforce has at least doubled every year.
In answer to the question above, it seems like Canva is doing very well, thank you.
The practise of asking for feedback is a core part of Canva’s culture and performance strategies. We need to know how we are going so we can improve, however most of us hate the assessment.
New York University research at a major consultancy looked at our aversion to criticism and discovered that people are equally anxious, whether they are giving the feedback or receiving it.
One of the co-authors of the study, psychologist and NeuroLeadership Institute senior scientist, Tessa West, says the best way to develop a “feedback culture” is to train people to ask for it – rather than wait for it to be delivered.
By requesting the assessment of their performance, individuals feel a sense of control and certainty and can steer the discussion where they want. The people giving the feedback will also feel more relaxed, because they no longer have to guess what is wanted from them.
The head of people at Canva, Zach Kitschke, says new hires are introduced to the feedback culture through an “onboarding boot camp”, featuring sessions from the three founders of the company – Melanie Perkins, Cliff Obrecht and Cameron Adams.
“Having a feedback conversation can be challenging and quite tricky, but we have a workshop that everyone goes through to learn how to do feedback and act in a constructive, supportive way,” Kitschke says.
“We have the philosophy that if everyone is constantly asking what they did well, or how they went in the meeting or what could they do better or how could they grow, then people are more open and more ready to hear feedback and people are more likely to give it as well.”
Kitschke has been with Canva for six years, from when it was a small startup with seven people to its present workforce of 600 in three offices in Sydney, Manila and Beijing.
Executive coach, Sarah Nanclares, joined the company as an internal coach last year and writes in a Canva blog: “… asking for feedback is a bit like exercising a muscle: the more you use it, the easier it becomes, and before you know it seeking regular feedback is no longer a scary task. In fact, it becomes welcomed.”
Points of difference
1.Skin in the game: Every employee is given equity options and becomes an owner of the business. Employees get a bonus of $5,000 if they successfully introduce a new hire to the business.
2. The Fix-It form: This form can be used to notify the founders and other senior executives of any problems.
3. Right fit: Recruits are screened for the values: Be a force for good, be a good human, set crazy big goals and make them happen, empower others, pursue excellence, and make complex things simple.
4. Someone to watch over me: Every new person gets paired with a mentor from the same area or discipline. Anyone can receive training to be a mentor.
5. Businesses within the business: Within Canva are 15 groups that function as their own startups, running independently, with the ability to move quickly.
6. Breaking bread: The teams stop for lunch every day and sit together at long tables so that no-one has to eat alone. A chef prepares shared serving plates and anything not eaten at lunch is refrigerated for people to take home for dinner. Ingredients come from a Canva-owned farm and the bar is open all day.
7. Open door: Employees are welcome to bring their dogs and children to work.
This article was originally written for The Ethics Alliance. The Alliance is a community of organisations sharing insights and learning together, to find a better way of doing business.
This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.
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BY The Ethics Alliance
The Ethics Alliance is a community of organisations sharing insights and learning together, to find a better way of doing business. The Alliance is an initiative of The Ethics Centre.
The transformative power of praise
What is it about the legal industry that makes it so depressing? Well, it is not the work – but it could be exhaustion mixed with a lack of control about how much work they can handle and a shortage of appreciation from their bosses.
Psychologist and a scientist in behavioural neurogenetics, Bob Murray, says human beings are designed to work as little as 10 hours per week.
“If we work for more than 10 hours a week, it becomes stress,” he told a recent seminar in Sydney.
While that may seem an extreme position at first glance, it is important to understand what Professor Murray means by “work”.
“Work” is the stuff we do that is a grind. It is, perhaps, the administrative work that takes us away from the tasks that are meaningful or enjoyable.
“Work means not necessarily enjoying yourself, not necessarily relating. Human beings are relationship-forming animals. We are driven to surround ourselves with a network of supportive relationships and we can work hard and long… providing that we do it in the company of other people that we actually like, and that we enjoy the process of doing things with them.
“It’s not a question of how many hours you work. It’s whether you enjoy the process of doing that work. And whether you enjoy the people that you do it with”.
Murray said people come to work to be part of a tribe and to learn.
“So people in law firms are willing to stay there for long hours, providing they’re enjoying the process of learning what they’re doing,” he said.
Murray says 30 percent of all lawyers think about suicide once a year and 40 percent are clinically depressed.
A national survey of almost 1000 lawyers finds that excessive job demands, minimal control over workload and spillover of work commitments into personal life are some of the work-related factors correlated with poorer mental health outcomes.
“Concerns about the structure and culture of legal practice in Australia are also highlighted,” say the authors of the study, Lawyering Stress and Work Culture: An Australian Study, 2012-2013.
He says one relatively simple thing that employers and managers can do is to praise their people. However, only around 5 percent of people get praised once a day.
Praise is powerful because of its effect on the “feel good” chemicals we produce, like dopamine, which helps our brains work faster, smarter, and more creatively.
However, poorly given praise tends to antagonise people. Murray says there are three elements to effective praise:
What: The giver has to be specific about what they are praising. A generic “well-done team” can have the opposite effect.
How: This is the effort or the way someone has gone about something. It is the kind of praise you may give a child who comes last in a race, but stuck it out to the end, gave it their best effort and didn’t let the team down. It is not necessarily tied to success, but encourages and rewards the right behaviours.
Who: This is praise for the relationship. “ I really enjoy working with you. It’s great to have you as part of you of my team.” Murray says this kind of praise is less used in law firms than other kinds – but is the most powerful.
This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.
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BY Professor Bob Murray
Professor Bob Murray, is a principal at consultancy Fortinberry Murray, was speaking on a panel, hosted by The Legal Forecast and Clarence Workplaces for Lawyers in Sydney.
Corruption, decency and probity advice
Corruption and probity are hot topics in Australia’s public sector. Even a cursory glance at recent cases brought before corruption watchdogs shows this.
The long running stories and court cases that follow have become a staple of national news bulletins. Any time a state asset is built, sold or disposed of, there are serious questions to be asked.
Probity – which is a corporate noun for ethics or honesty and decency – has established its place in the architecture of technical services that assess, assure and measure high-risk public sector projects. Probity advising and auditing is crucial when how a project is executed is just as important as any intended outcome.
As the line separating public and private sector accountabilities becomes less clear, non-government actors are increasingly looking to probity professionals to help ensure – and show – integrity in their dealings. However, before doing so it is important the probity professionals themselves improve the integrity of their process and gain a more sophisticated understanding of ethical frameworks.
Probity services are provided both by large accounting firms and a growing band of smaller boutique operators. Probity plans (documents that set out how the project will be run to ensure the integrity of the process) are now a mandatory requirement for many public projects.
Probity professionals use a number of lenses to monitor and promote ethical decision making in execution, typically through the following fundamentals:
Value for money: Was the market tested adequately to ensure an organisation was achieving the most competitive result, which made the best use of resources?
Conflicts of interest and impartiality: Were processes in place to manage any actual, perceived or potential conflicts of interests?
Accountability and transparency: Was an auditable trail maintained to provide evidence of the integrity of the process? Was enough information made available to promote confidence – for example, were selection criteria and time lines for decision making adequately communicated?
Confidentiality: When sensitive information from stakeholders is received, such as private or business-in-confidence information, was there a process in place to identify and protect this information?
The growth of probity services over the last 30 years undoubtedly reflects their ability to add value to projects. However, over that same period there has been concern that practitioners have at times diminished, rather than promoted, probity fundamentals. Some of the critical factors include:
- Relying too heavily on compliance monitoring at the expense of ethical considerations
- Allowing their duties to be too narrowly defined by clients
- Lacking the confidence to challenge impropriety
- Allowing themselves to be “shopped” (much like “legal advice shopping,” clients can go from one probity advisor to another until they get the advice they want).
There is also concern that public sector agencies can overuse these services, having the effect of “contracting out” their probity obligations in their regular operations.
To some extent these are symptoms of the unregulated nature of probity services. There are no formal qualifications required for probity advisors and auditors and no professional standard governing them.
Their difference from traditional audits or investigations has led to some misunderstanding of their role and judgements which can lead to unfair criticism of probity professionals, but also to exploitation by both clients and probity practitioners.
To tackle these problems and prepare for a broader role in guiding business dealings, probity practitioners need to acknowledge their own industry’s need for an ethical framework and an increasingly robust standard for professional practice.
This framework would acknowledge their implied obligation to society to be more than a mere compliance check, and, on behalf of the average Joe on the street, to be the one in the room to ask a simple pub test question: after all the boxes have been ticked, does it look and sound like an ethical process?
To do this, the profession needs to imagine its duty in broader terms than self-interest or the interest of clients, but to society in general, in line with other professions tasked with acting in the public interest.
For some time, probity professionals have used policy documents such as the NSW Code of Practice for Procurement to gauge the ethical performance of government projects. However, as their duty and work expands to different sectors and in line with changing community expectations, they will need to be able to identify the ethical frameworks peculiar to those sectors and to the organisations they are commissioned by.
Used effectively, an ethical framework is the foundation of an organisation’s culture.
When requested to provide probity related advice, The Ethics Centre includes the ethical framework amongst its list of fundamentals. This allows our clients to do more than tick boxes. It allows them to assess whether they have lived up to their ethical obligations, the values they proport to uphold and their promise to the community.
In a world in which trust is in deficit, these are important skills to have.
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BY David Burfoot
David has worked in the not-for-profit, public and private sectors domestically and internationally for organisations as diverse as the United Nations Development Program, Deloitte, the NSW Independent Commission Against Corruption and Sydney University. He has been an anti-corruption specialist with a number of government agencies and held senior positions responsible for corporate planning, change and internal communications.
How to build good technology
Dr Matthew Beard explains the key principles to guide the development of ethical technology at the Atlassian 2019 conference in Las Vegas.
Find out why technology designers have a moral responsibility to design ethically, the unintended ethical consequences of designs such as Pokemon Go, and the the seven guiding principles designers need to consider when building new technology.
Whether editing a genome, building a driverless car or writing a social media algorithm, Dr Beard says these principles offer the guidance and tools to do so ethically.
Download ‘Ethical By Design: Principles For Good Technology ‘
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BY Matthew Beard
Matt is a moral philosopher with a background in applied and military ethics. In 2016, Matt won the Australasian Association of Philosophy prize for media engagement. Formerly a fellow at The Ethics Centre, Matt is currently host on ABC’s Short & Curly podcast and the Vincent Fairfax Fellowship Program Director.
The dangers of being overworked and stressed out
If anyone has a visceral understanding of how high-pressure work environments make mincemeat from young graduates, it is Georgie Dent. Her first job as a young lawyer ended in a nervous breakdown and two weeks in a psychiatric hospital.
Now a well-known journalist and advocate for women, Dent is also supporting her husband (a surgeon-in-training) through the brutal demands of his work, is raising three young daughters and has just published a book (Breaking Badly) about how things fell apart during her 18-months of working in a top law firm, 12 years ago.
“I think that there is the same sort of cultural expectation in law and medicine, that you will suck up absolutely everything and you will work around the clock,” she says.
When Dent looks back at her time as a lawyer, she acknowledges that an unworkable workplace was just one element in her breakdown. She also had to deal with her anxious personality and the ravages of Crohn’s Disease – a life-long gastrointestinal disorder.
“I think, for me, it probably wasn’t avoidable. I actually think, no matter what job I had taken, I was headed for some sort of breakdown. Being in a particularly stressful job with really long hours certainly didn’t help me physically… and then mentally,” she says.
Dent’s first six-month rotation in the law firm was with a Partner who was regarded as a genius and “rainmaker”, but was actually a shouting bully. As she details in her book:
“Almost anyone who has done any work inside a large law firm will have a tale or two about a tyrannical partner. These men and women are feared and revered in equal measure: they are not afraid of throwing phones and think nothing of publicly dressing down members of their team, they expect an immediate response to every email regardless of the time it’s dispatched, and generally have everyone in their vicinity living on a knife’s edge.
“The man I worked for had had nine members of staff leave in the six months before I joined – and it was a team of six. He went hot and cold, and was aggressive, void of self-awareness and really difficult to please.”
A lack of autonomy
Dent stayed the course and then moved onto a team that was welcoming and collegiate, but the stress had exacerbated her Crohn’s, which only added to her anxiety.
Juniors such as Dent, as she was then, had been the stars of their schools and universities, but found their achievements and intellect counted for little at work.
“As the firm’s underlings, we operated at the whims of partners, senior lawyers and clients. The higher a person climbs in a law firm the greater autonomy they secure. We were on the bottom rung, which meant no autonomy at all.
“We were so lowly, in fact, that we were rarely given a glimpse of the ‘big picture’. Instead, we were often asked to complete tasks without any context, which meant we were regularly blindsided when it came to the next step.
“Having a substantive task doled out at 5.30pm with a tight turnaround wasn’t unusual – in fact, it was practically expected. The salt in the wound was when this kind of task was handed to you at the end of a quiet day, after you had been hanging around and asking for work since morning, unsure of how you could possibly meet your billable target without anything to do.”
Dent sees this lack of control as a factor in burn-outs among lawyers and doctors.
Unsafe hours for doctors
Reconstructive plastic surgeon, Neela Janakiramanan, has written about the pressures on young doctors in a column for Women’s Agenda(of which Dent is a contributing editor).
“As an intern, I learned that it is considered acceptable to work eighty hours in a week if you have the following week off, and not be paid overtime for the week worked because the average across the fortnight is only forty,” writes Janakiramana.
Janakiramana’s longest fortnight was 204 hours in twelve consecutive days, “with the majority of it on call, in the midst of a job where the average was 180 hours a fortnight. I was in my third trimester of pregnancy”.
It is worth noting that the suicide rate for doctors is twice that of the general population and a 2016 audit found 53 per cent of public hospital doctors are working unsafe hours. Mental health starts to decline after someone has worked more than 39 hours per week, according to research.
After leaving the law firm to recuperate, Dent found herself in another occupation often regarded as high-pressure – journalism – for BRW magazine. Even though she was again starting at the bottom, Dent found the experience enlightening.
“It was just so different to me, culturally,” she says.
“In editorial meetings, people were allowed to speak. In a law firm… you don’t speak unless you’re spoken to. As a junior, you’re not even allowed to send an email.
“[In law firms] You’re on the leash so much and, culturally, that creates a different dynamic. I found it very refreshing to walk into other workplaces where you can still sit around the table and pitch ideas and contribute to conversations without thinking through every single word that you say.”
Longer (hours) does not equate to ‘better’
When it comes to working hours, many studies show that longer work weeks do not improve productivity. They may even make people less productive.
Dent points to the experience of Perpetual Guardian in New Zealand, which offered its 250 staff a four-day work week, while retaining their full-time wages. A study of the impact of the initiative reported lower stress levels, higher levels of job satisfaction and an improved sense of work-life balance.
Company founder, Andrew Barnes, told The Guardian: “For us, this is about our company getting improved productivity from greater workplace efficiencies… there’s no downside for us”.
Dent supports the idea that law firms “gear themselves” around efficiency, rather than time worked.
“I think then across every industry, every field, I think we need to get a recognition that we work incredibly long hours and we have to look at how that is impacting our lives as well as that work,” she says.
“It’s easy to fall into that trap of thinking that, in this line of work [law], we have to be available all the time and that’s the only way we can deliver value to clients. I just don’t necessarily think that’s true. And I think that it’s worth being a little bit bold.”
This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.
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BY Fiona Smith
Fiona Smith is a freelance journalist who writes about people, workplaces and social equity. Follow her on Twitter @fionaatwork
Overcoming corruption in Papua New Guinea
Papua New Guinea is known as one of the most corrupt countries in the world.
Yet through delivering ethical leadership training to public officials there, The Ethics Centre is seeing a natural aptitude for ethics that government and corporations are struggling to nurture in Australia.
It has one of the most diverse cultures with over 850 known languages spoken. It is rich in minerals, gas and forestry.
Yet despite its natural wealth, Papua New Guinea suffers the ‘paradox of plenty’ or ‘resource curse’. This is where countries endowed with rich natural resources struggle to make effective use of them and end up with lower levels of economic development than countries without those natural resources. How could this be?
PNG is plagued by what the United Nations Development Program claim to be the most crippling ethical failure in international development: corruption.
Transparency International ranks PNG as one of the most corrupt countries in the world. Its PNG chapter states, “There is massive disrespect for rule of law in Papua New Guinea. Public servants and citizens alike lack the integrity to adhere to proper processes and respectful ways of conduct”.
Such assessments may however overlook some important strengths amongst PNG’s people, ones which may in time prove instrumental in corruption control.
The Ethics Centre delivers a broad range of ethics educational programs, including one package being delivering to senior PNG Officials, funded by Department of Foreign Affairs and Trade.
Contrary to what some might guess, this training does not lecture participants about what is ‘right’ and ‘wrong’. Instead, it identifies what is meant by ‘ethics’, what gets in the way of ethical decision making and mechanisms to integrate ethics into the governance of organisations and their various activities.
More research is showing the power of ethical leadership in building strong organisational cultures that are able to resist ethical failure (like corruption) and enhance corporate performance.
The program links personal and organisational ethical frameworks. Different factors are identified as influential to the ‘PNG mindset’ and decision making of public officials:
- Christian values
- Clan values
- Government values
- Global values
At times the training also includes instruction on specific techniques, such as conflicts of interest management and probity reviewing.
Instruction in these skills is growing in demand in Australia and abroad as government and corporations alike search for ways of winning back public trust and confidence.
In contrast to the past problematic approach of corporate leaders to ethics in the West, that is, as non-essential and nice-to-have, PNG officials demonstrated a sophisticated appreciation of the instrumental and social value of ethics in administration.
As facilitators, we learnt much about the ethical dilemmas and challenges confronting PNG officials, often on a scale many Australians would have difficulty comprehending. A person’s relationship with a clan, family, profession and government at times present complex dilemmas.
Yet these officials’ enthusiasm for honouring all these duties and appreciating their tangible and intangible worth appears undiminished. They appear to have missed the economic rationalist memo. And this is a real strength for PNG, something some commentators may be overlooking.
To help preserve this strength and to take advantage of it in countering corruption and other PNG challenges, The Ethics Centre is talking to potential partners about co-designing content with local officials and developing a train-the-trainer program.
We know local officials are enthusiastic for more of this training, indeed, it was the PNG Department of Personnel Management who requested education in ethical decision making for public servants. The average Net Promotor Score from participants on the program is 88 (of a score between -100 and +100), indicating high levels of satisfaction. We look forward to continuing our work with the Australian Government and the Government and people of PNG on this important initiative.
Lead photo by Stefan Krasowski
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BY David Burfoot
David has worked in the not-for-profit, public and private sectors domestically and internationally for organisations as diverse as the United Nations Development Program, Deloitte, the NSW Independent Commission Against Corruption and Sydney University. He has been an anti-corruption specialist with a number of government agencies and held senior positions responsible for corporate planning, change and internal communications.
Ethical concerns in sport: How to solve the crisis
The Ethics Centre (TEC) has often been called upon to assist sporting organisations with ethical crisis.
The Ethics Centre recently took advantage of an opportunity to discuss two recent cases regarding ethical sport dilemmas with a group of HR Sport Executives. It was an enlightening experience and we’d like to share it with you.
As a reminder, TEC undertook two high-profile reviews of sporting organisations over the last 18 months, the Australian Olympic Committee (AOC) and Cricket Australia (CA).
The first of these explored the comparison between sportsmanship and the ‘pragmatic’ or even gamesmanship* approach to its administration. Bringing the two approaches was problematic and culminated in disenchantment, frustration and an organisational culture that neither represented the best of sport or organisational administration.
The Centre delivered a warts-and-all report with 17 recommendations, all of which were accepted. Recent discussions with AOC reveal a major shift in the culture of the organisation over the last 12 months, under the leadership of CEO Matt Carroll and the Head of People and Culture, Amie Wallis. AOC staff need to be congratulated for what they have achieved.
The other engagement was with Cricket Australia, a culture and governance review in response to the ball-tampering incident at the Newlands Ground in South Africa during an international test match in March 2018. It was clearly against the rules.
The initial attempts of the players to conceal what they were doing is testament to this. But it wasn’t as clean-cut as that. The incident seemed to represent an attack on something sacred to Australians. Many fans reacted as if they were personally afflicted.
Our interviews and surveys of CA staff, players, cricket officials, sponsors and members of the public often explored the difference between sportsmanship and gamesmanship. Comparisons were drawn between ball-tampering, sledging and the underarm bowling incident in 1981 during a One Day International cricket match between Australia and New Zealand.
We recently had the good fortunate of being invited to a discussion about such issues with a group of HR executives, representing some of the major professional sporting organisations in Australia, from Horse Racing to Rugby, organised by Mercer Australia.
And of course we accepted.
We put to them the observation that when there is fraud in government, the actions are often labelled corruption, as they signify a greater social betrayal than a breach of the law. Fraud in the private sector doesn’t attract the same moral outrage and avoids the ‘corruption’ label, with one exception: sport. Sport also uses the word ‘corruption’ to describe fraudulent behaviour. We asked why.
The group started with the suggestion that people take sport personally, as we all feel part of it and we all feel like we own it. We play it to pursue the best in us, we barrack for our team, we involve our children in it and we use it as a tool to teach our children about values, about what is important in life.
We all feel obliged to have an opinion about it, perhaps as Australians. This is probably why people feel fraud in sport is a moral issue that goes beyond compliance with the law, a social ‘evil’ that the word ‘corruption’ better conveys. There was also the feeling that corruption is used because it reveals the interconnected network that comes with fraud in sport.
When asked about the dilemmas in sport more broadly, many spoke about the challenge players experience balancing their need to win and earn income, with their long-term wellbeing.
Players often hide their injuries to avoid being dropped from teams. These injuries are often physical, but sometimes they are mental. The period where an athlete is most successful financially is narrow. The pressure to sacrifice their long-term health as a result is real.
As HR professionals they also spoke of their dilemmas, when they need to balance advocacy for the individual player with the best interests of the company or business side of the sport. They spoke of this also in relation to the management of the team, when the coach feels the need to let someone play because their family is present, even though it may not be in the best interest of a win.
They spoke about how officials are tempted to overlook bad leadership of team leaders when the characters themselves raise the winning morale of the team. Some spoke about the challenges of being considerate of a person’s background, but also being clear that it did not excuse bad behaviour such as sexual harassment.
We see related dilemmas in other sectors currently under the public spotlight. It is accepted that the unique relationship between sport and ethics has been neglected by philosophers.
There may be much to be learnt by our experience of sport, and how its values are brought to the wider theatre of life. These discussions help us reach a better understanding about these relationships.
* Gamesmanship is built on the principle that winning is everything. Athletes and coaches are encouraged to bend the rules wherever possible in order to gain a competitive advantage over an opponent.
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BY David Burfoot
David has worked in the not-for-profit, public and private sectors domestically and internationally for organisations as diverse as the United Nations Development Program, Deloitte, the NSW Independent Commission Against Corruption and Sydney University. He has been an anti-corruption specialist with a number of government agencies and held senior positions responsible for corporate planning, change and internal communications.
How can Financial Advisers rebuild trust?
It would be no exaggeration to say the Australian financial advice industry is going through a difficult time.
Following years of scandals, and shocking evidence brought to light by the Hayne royal commission, urgent steps are now being taken to “professionalise” the banking and finance sector.
Amongst the headlines: embattled financial services giant AMP is setting aside an eye watering $290 million to compensate customers who received poor financial advice, and a further $35 million annually to improve compliance structures.
All of the major banks have announced their plans to “amputate” financial advice and wealth management from their portfolio of vertically integrated activities.
Many advisers have already lost their jobs. And many more have already announced their intention to leave the industry rather than face greater scrutiny and a new compliance burden.
For those operators planning to stay in business, there’s a new sheriff in town. The Financial Adviser Standards and Ethics Authority (FASEA) was established by the Federal Government in 2017 to set the education, training and ethical standards of licensed financial advisers in Australia.
FASEA requirements for mandatory education and Continuous Professional Development (CPD) are unlike anything the industry has ever seen.
The push to professionalise the sector is moving with speed. Starting this year, advisers will be required to undertake formal education, in the form of either a full degree or bridging course, plus nine hours of continuing professional development (CDP) annually. Advisers will be required to pass an exam to earn their license and continue to operate.
What’s the problem?
While the standards mentioned above might sound perfectly reasonable to someone already working within a well established profession such as accountancy or the law, this is unfamiliar territory for many financial advisers.
Many advisers who have been working for years or even decades will be daunted by the demand for serious study and a formal academic qualification. Some advisers have already expressed concern at the financial burden of course fees and lost income. Many others will be daunted by the sheer number of hours required each year to meet FASEA’s standards.
It’s little wonder the industry is going through a crisis of confidence. And while the emphasis has rightly been placed on the rights of the customer, and the many people who have received poor advice, it’s also worth pausing to think about the impact this has on individual advisers – some of whom have been operating honestly and ethically for many years. For such people, and there are many, the avalanche of bad press and community outcry has been difficult to bear.
We know many people become financial advisers because they are passionate about the financial wellbeing of their family, friends and community. They aspire to help people secure economic stability and security whilst avoiding the abundant pitfalls and bad products.
Of Gallup’s Five Essential Elements of Well-being, financial security is at the centre. Practiced ethically and professionally, the work of a financial adviser supports and protects other critical areas of a person’s life.
This leads to some interesting questions about the overarching purpose of a financial adviser.
Why does this role exist? What purpose does it serve individuals, communities and society at large? What is the overarching public good that can be achieved from a profession that supports, protects and grows a person’s financial wealth?
Or to look at it another way, what would the world look like without financial advice? If all of the competent advisers were to leave the industry, where does that leave the community?
Advisers who are on the fence about their future should take time to work out what the role of financial advice means to them. Whilst the reputation of the industry may be at its lowest point, it’s a great time to get back to basics and think about the purpose and impact of this type of work.
What is the solution?
The Ethics Centre has had quite a bit of involvement in this story as it’s unfolded. When the scandal first began to erupt three years ago, we worked with some of the largest advice firms to develop in-house training programs for financial advisers.
We’ve helped inform FASEA’s thinking on ethical standards for the industry. We’re currently working on building a course on ethics and professionalism to be delivered by universities.
We also offer free counselling to individuals via our Ethi-call service – and that includes financial advisers struggling at a career crossroads.
For those advisers currently at this point, we’d advise some clear headed thinking about career purpose and priorities. If you think you’d benefit from talking through your dilemma with an impartial counsellor, you are welcome to call Ethi-call.
The service is a free, appointment-based telephone counselling service offered by The Ethics Centre to help people navigate some of life’s toughest decisions.
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