Welcome to the July 2010 edition of our newsletter
- Conflicts of Interest and Codes of Conduct
International
Association of Potential, New and Sitting Members of the Board of
Directors (IAMBD)
Dear Members,
Today we will discuss some interesting
details about Conflicts of Interest
and Codes of Conduct.
We have also some good news:
The International Association of Potential, New and Sitting
Members of the Board of Directors (IAMBD) is offering at a very
discounted price 3 distance learning and online certification
programs.
A. $498 (instead of $997) - Final cost for each
of the following programs (all inclusive)
1. Certified Member
of the Board of Directors (CMBD)
2. Certified Member of the
Risk Committee of the Board of Directors (CMRBD)
B. $198
(instead of $397) - Final cost for the following program (all
inclusive)
3. Certified Member of the Corporate
Sustainability Committee of the Board of Directors (CMCSCBD)
To read more:
www.members-of-the-board-association.com/Distance_Learning_and_Certification_50_Per_Cent_Discounted_Price.htm
OFFER VALID UNTIL JULY 31,
2010
Today we will discuss some
interesting details about Conflicts of
Interest and Codes of Conduct.
According to the
OECD definition "Conflict of interest
occurs when an individual or a corporation (either private or
governmental) is in a position to exploit his or their own
professional or official capacity in some way for personal or
corporate benefit."
We will read an interesting
case study, with examples that clarify what is required.
We will start with the
Code of Conduct for the Members of the
Executive Board of the International Monetary Fund.
Code of Conduct for the Members of the
Executive Board of the International Monetary Fund
Executive Directors of the
Fund are entrusted by the member countries that have selected
them with responsibilities for ensuring
that the Fund carries out the mandate prescribed in its Articles
of Agreement.
The office of Executive
Director of the Fund requires personal and professional conduct
that meets the highest standards.
The Board of Governors has
adopted certain resolutions with respect to the conduct of
Executive Directors.
In
addition, Executive Directors have adopted the following Code of
Conduct, which is intended to provide guidance on ethical
standards in connection with, or having a bearing on, their
status and responsibilities in the Fund.
The standards
set out in this code also apply to
Alternate Executive Directors, and Advisors to Executive
Director, who perform their functions under the authority
of the Executive Director.
However, in lieu of the
procedures set forth below concerning the Ethics Committee of
the Executive Board, Executive Directors
will consider any allegations of misconduct by Alternates and
Advisors in their respective offices and will take such measures
as are necessary and appropriate in the circumstances.
Application
Except with
respect to the consideration of alleged misconduct by the Ethics
Committee, all references to Executive
Directors in this Code shall include Alternates and Advisors
unless otherwise indicated.
With respect to assistants to
Executive Directors, Executive Directors should apply, to the
extent possible, the provisions of the Fund Staff Code of
Conduct to assistants in their own offices, and should take such
measures as are necessary and appropriate.
Other persons who are
designated as Temporary Alternates shall
also be subject to the provisions of this Code on the same basis
as Executive Directors.
Basic Standard of Conduct
Executive Directors should
observe the highest standards of ethical conduct. In the
performance of their duties, they are expected to carry out the
mandate of the Fund to the best of their ability and judgment,
and to maintain the highest standards of integrity.
In their conduct outside
the workplace, they should also ensure that they observe local
laws so as not to be perceived as abusing the privileges and
immunities conferred on the Fund and Executive Directors.
Conduct Within the Fund
Executive Directors should treat their
colleagues and the staff with courtesy and respect, without
harassment, physical or verbal abuse.
Executive
Directors should exercise adequate control
and supervision over matters for which they are individually
responsible.
Executive Directors
should ensure that Fund property and
services are used by themselves and persons in their offices for
official business only.
Protection of Confidential Information
In line
with the rules and guidelines of the Fund, Executive Directors
have the responsibility to protect the
security of any confidential information provided to, or
generated by, the Fund.
Public Statements
When making public statements or
speaking to the media on Fund-related matters, Executive
Directors should make clear whether they
are speaking in their own name or on behalf of the Executive
Board.
Conflicts of Interest
In performing their duties, Executive Directors will carry
out their responsibilities to the
exclusion of any personal advantage.
Executive
Directors should avoid any situation involving a conflict, or
the appearance of a conflict, between their personal interests
and the performance of their official duties.
If such
a conflict arises, Executive Directors should promptly inform
the Ethics Committee and withdraw from participation in
decision-making connected with the matter.
If the conflict is potential
rather than actual, Executive Directors should seek the advice
of the Ethics Committee about whether they should recuse
themselves from the situation that is creating the conflict or
the appearance of conflict.
Personal Financial Affairs
Executive Directors
should not use, or disclose to others,
confidential information to which they have access, for purposes
of carrying out private financial transactions.
Because of the Fund's role in
exchange rate surveillance, Executive Directors should
not engage in short-term trading
(i.e., a combination of buying and selling within six months) in
gold, foreign currencies, and closely related financial
instruments, for speculative purposes.
For this purpose, the term
"combination" does not include one-way transactions, such as the
selling or buying of foreign exchange for household expenses,
education or travel expenses.
For purposes of complying
with these principles, Executive Directors should follow the
guidance provided to the staff.
Disclosures
Executive Directors should
make written disclosure to a compliance
officer selected by the Executive Board of any
financial or business interests of their
own or their immediate family members.
Until the extent and manner of
this disclosure are determined by the Executive Board, the rules
governing disclosure by the senior staff of the Fund shall
apply.
The compliance officer shall
bring any unresolved concerns regarding a conflict of interest
between an Executive Director's holdings and the performance of
Fund duties to the attention of the Ethics Committee of the
Board.
Gifts and
entertainment
In regard to acceptance of
favors, gifts and entertainment, Executive Directors
should exercise tact and judgment
to avoid the appearance of improper influence on the performance
of their official duties.
The ordinary courtesies of
international business and diplomacy may be accepted,
but substantial and unusual gifts, favors
and entertainment, as well as loans and other services of
significant monetary value, should not be accepted.
Post-Fund Employment
When negotiating for, or entering into an arrangement
concerning, prospective employment outside the Fund, Executive
Directors should not allow such
circumstances to affect the performance of their duties.
Where involvement in a Fund
matter could be, or could be perceived as, benefitting the
prospective employer, regardless of whether there is detriment
to the Fund or their constituents, Executive Directors should
recuse themselves.
Executive Directors who leave the Fund
should not use or disclose confidential information known to
them by reason of their service with the Fund, and should not
contact Executive Directors or other Fund officials (other than
through official channels) to obtain confidential information.
The Ethics Committee of the
Executive Board
An
Ethics Committee, comprised of five Executive Directors,
shall be established by the Executive Board to consider matters
relating to this Code. In addition, if requested to by Executive
Directors, the Committee shall give
guidance to them on ethical aspects of conduct, including the
conduct of their Alternates, Advisors and assistants.
The Executive Board shall select a Chairperson, four
members, and five alternate members from among Executive
Directors.
They shall be selected on the
occasion of a general election of Executive Directors, and shall
serve for two years.
If the Chairperson, a member
or an alternate member resigns, a new Chairperson, member or
alternate member shall be selected by the Executive Board to
complete the remainder of the term.
In the absence of the
Chairperson, the Committee member who is the most senior
Executive Director in the Board shall serve as acting
Chairperson.
In the event that a member of
the Committee is not able to attend or serves as acting
Chairperson, an alternate member shall serve in that member's
place in order of seniority of Board membership.
If the
conduct of a member of the Committee is under consideration by
the Committee, that member shall recuse himself/herself and be
replaced as provided above.
The
General Counsel of the Fund, or if absent
his/her representative, shall be the permanent secretary of the
Committee.
The Ethics Committee may seek
the views of the Fund's Ethics Officer ex officio on any matter
with which it is dealing.
The meetings of the Ethics
Committee shall be restricted to members
only and the permanent secretary of the Committee except at the
Committee's invitation.
The Ethics Committee shall
consider any alleged misconduct by an Executive Director, and
any matters brought to its attention by the compliance officer
concerning the disclosures made by Executive Directors about any
actual or potential conflict of interest.
The Executive Director
concerned shall, in all cases, be given the opportunity to
present his/her views to the Committee.
If a
majority of the Ethics Committee concludes
that misconduct has been committed, and taking into
account both the nature and seriousness of the misconduct and
the Executive Director's prior record of conduct, the members of
the Committee shall make recommendations to the Committee of the
Whole of the Executive Board regarding whether a warning should
be issued to an Executive Director, and whether such warning
should be conveyed to the Governor(s) of the member country (or
countries) that appointed, elected or designated the Executive
Director.
If a
majority of the Ethics Committee concludes that no misconduct
has been committed, the Executive Director concerned shall be so
informed and no recommendation shall be made.
When convened for this
purpose, the Committee of the Whole shall be comprised
exclusively of Executive Directors and shall have a quorum equal
to one-half the number of Executive Directors.
Upon
receiving the recommendations of the Ethics Committee, the
Committee of the Whole shall consider which of the following
actions to take:
(i) no
further action in the matter;
(ii) issuance of a warning to
the Executive Director; or
(iii) issuance of a warning to
the Executive Director and transmittal of the warning to the
Governor(s) of the member country (or countries) that appointed,
elected or designated the Executive Director.
If there is no consensus in
the Committee of the Whole as to which action to take, the
matter shall be referred to the Executive Board for decision.
The Executive Director concerned shall, in all cases, have
the opportunity to present his/her views to the Committee of the
Whole, but shall not participate in the deliberations on the
case.
IMF
Code of Conduct for Staff
Introduction
The code of conduct applies to all
International Monetary Fund staff.
The code outlines in one
document the guidelines for staff conduct, which are prescribed
in various Fund rules and regulations.
It also
provides guidance on how to exercise good judgment in ethical
matters, and it includes practical examples to illustrate how
the rules can be applied.
The code clarifies and
expands upon a number of rules.
For example,
it defines more clearly the obligations of
staff as international civil servants with regard to conduct
both at work and elsewhere.
The section on use and
disclosure of information provides clear and practical guidance
to staff. The section on financial disclosure strengthens the
safeguards needed to ensure that both the International Monetary
Fund and its staff are seen as free of any conflict of interest
and beyond reproach.
I.
Preamble
1. The goals of the International
Monetary Fund (IMF) require that all who
work for the institution observe the highest standards of
professional ethics.
We all
have a responsibility to contribute to the good governance of
the IMF and to help maintain its reputation for probity,
integrity, and impartiality.
2. This code presents
guidelines for staff conduct, which are intended to be
consistent with the specific standards of conduct applicable to
IMF staff members pursuant to the IMF's N-Rules and Regulations.
3. The code outlines obligations of IMF staff. However,
the IMF as employer also has the obligation to assist staff in
these matters by providing information and advice and by being
responsive to staff concerns about ethical issues.
Ethical conduct is not a
passive process, but requires you to make conscious choices and
decisions, and to exercise good judgment, consistent with the
ethical values of the organization embodied in this code. A few
basic guidelines to keep in mind:
-
always act honestly and impartially when carrying out your
duties;
- never make private use of, nor disclose
without authorization, any confidential information you obtain
through your work for the IMF;
- avoid outside activity
that could reasonably be perceived as a conflict of interest;
and
- always treat others in a courteous and
professional manner.
4. You may sometimes find
that the proper conduct in a given situation is not
self-evident.
This code can help you decide
what to do in many, but not all, situations.
When you are in doubt about
the ethical implications of an action, seek advice before you
act.
Consult the documents posted
on the IMF Web Service under the heading "Ethics and Staff
Conduct."
Address any questions to your
supervisor or to the Staff Development Division of the Human
Resources Department (HRD). And ask yourself these questions:
Is it legal?
Does
it feel right?
Will
it reflect negatively or positively on me or the IMF?
What
would a reasonable person think about my action?
Would I be embarrassed if others knew I took this action?
Is
there an alternative action that does not pose an ethical
conflict?
5. Failure to observe the IMF's Rules
and Regulations may be grounds for
disciplinary action by the IMF, which may include termination of
employment in the case of serious violations.
Disciplinary action may be
imposed for such misconduct depending on factors such as the
nature and seriousness of the violation and the staff member's
prior record of conduct.
Before disciplinary action is
imposed, staff will be given the
opportunity to present his/her views on the alleged misconduct,
and, in case of disagreement with the action, may appeal it.
II.
Basic Standard of Conduct
6. As a staff member,
you are expected to observe the highest
standards of ethical conduct, consistent with the values of
integrity, impartiality and discretion.
You should strive to avoid
even the appearance of impropriety in your
conduct.
In the performance of your
duties, you have a duty of exclusive loyalty to the IMF, and to
its objectives, purposes, and principles.
Integrity
7. You are expected to act with
integrity in all your official activities, avoiding any behavior
that would reflect adversely on you or on the IMF.
Integrity encompasses
honesty, probity, and loyalty.
You are expected to provide
accurate and complete information needed by the IMF for the
administration of personnel matters, and you must promptly
report changes in your personal circumstances that affect your
eligibility for benefits and allowances.
8. The IMF
respects the privacy of staff members
and does not wish to interfere with their personal lives and
behavior outside the workplace.
However, the status of an
international civil servant carries certain obligations as
regards conduct, both at work and elsewhere.
The IMF attaches great
importance to the observance of local laws by staff members, as
well as the avoidance of actions that could be perceived as an
abuse of the privileges and immunities conferred on the IMF and
its staff, as the failure to do so would reflect adversely on
the IMF.
For example, staff members
are expected to meet their private legal
obligations to pay child support and alimony, and to comply with
applicable laws concerning the treatment of G-5 domestic
employees, as this program is available as a special privilege
for international organization personnel.
The IMF would also be
seriously concerned about notoriously disgraceful conduct by a
staff member involving domestic violence or abuse of family
members.
9. The IMF is not
in a position to investigate allegations
that a staff member has violated local law.
However, if concerns about a
staff member's behavior outside the workplace are brought to its
attention by third parties, it is both appropriate and prudent
that the staff member be informed about the matter.
It is not the IMF's role to
determine whether local laws have been
violated by a staff member, as that is for the domestic courts
to decide.
However, if the IMF receives a
lawful order from a court or other governmental authority
instructing it to withhold an amount of salary to be paid to a
staff member to satisfy an outstanding legal obligation, the IMF
will not allow the staff member to take undue advantage of the
fact that it is immune from such orders.
Impartiality
10. You are expected to act with
impartiality.
You should take care that
your expression of personal views and
convictions does not compromise or appear to compromise the
performance of your official duties or the interests of the IMF.
Your official conduct
must at all times be characterized by
objectivity and professionalism.
You should
not allow personal relationships or
considerations, including bias or favoritism, to
influence the performance of your official duties and you should
avoid situations that create a conflict of interest.
Discretion
11. You should exercise
the utmost discretion in your actions and show tact and
reserve in your pronouncements in a manner that is consistent
with your status as an international civil servant.
You should refrain from
participating in any activity that is in conflict with the
interests of the IMF or would damage the IMF's
reputation.
You must respect and safeguard
the confidentiality of information which is available or known
to you by reason of your official functions.
III.
Conduct Within the IMF
12. The basic values of
impartiality, integrity, and discretion should govern all
aspects of your conduct in your work.
Duty of
loyalty
13. By accepting appointment at the IMF,
you have promised to discharge your
functions under the sole authority of the Managing Director.
You must respect the
international character of your position and maintain your
independence by not accepting any instructions relating to the
performance of your official duties from any national government
or from any other sources external to the IMF.
Courtesy and respect
14. You should treat your
colleagues, whether supervisors, peers, or subordinates, with
courtesy and respect, without harassment, or physical or verbal
abuse. You should at all times avoid behavior at the workplace
that, although not rising to the level of harassment or abuse,
may nonetheless create an atmosphere of hostility or
intimidation.
Diversity
15. In view of the international
character of the IMF and the value that the IMF attaches to
diversity, you are expected to act with
tolerance, sensitivity, respect, and impartiality toward other
persons' cultures and backgrounds.
Accountability
16. You must act
within the scope of your authority at all
times.
You remain accountable for
tasks you delegate to others and you are expected to exercise
adequate control and supervision over matters for which you are
responsible.
Use
of IMF property, facilities, and supplies
17. You
have a responsibility to ensure that IMF
resources are used for the official business of the IMF and you
are expected to devote your time during working hours to the
official activities of the IMF.
18. A rule of
reason applies to the personal use of IMF premises or equipment.
Conflict resolution
19. Managers have a
responsibility to make themselves available to staff members who
may wish to raise concerns in confidence
and to deal with such situations in an impartial and sensitive
manner.
Managers should endeavor to
create an atmosphere in which staff feel free to use, without
fear of reprisal, the existing institutional channels for
conflict resolution, and to express concerns about situations
which are, or have the potential to be, conflictive.
IV.
Use and Disclosure of Information
Use and disclosure of
confidential information
20. You have a
responsibility to protect the security of any confidential
information provided to, or generated by, the IMF.
Accordingly, to avoid any
unauthorized disclosure, you should be careful how you handle
confidential information.
The
basic principle of the rules and
guidelines on information security is that confidential
information may be communicated among staff only in accordance
with the rules/guidelines of document classification and must
not be communicated to outsiders without authorization.
Such authorization may take
the form of either direct instructions from management to
individuals or departments, or general policies established by
management and the Executive Board.
In addition, you must not use
any such confidential information for your own advantage, for
example, in your private business dealings (see Section V).
Press relations, public statements and publications
21. You should not, without authorization, provide to the
news media, publish, or make public statements relating to the
policies or activities of the IMF or to any national political
question.
You are
free to publish and speak about other subjects, but you should
avoid any public communication not in keeping with your position
as an international civil servant, which calls for reserve and
tact.
22. Special procedures have been established
for handling news media contacts in the IMF.
Normally,
before responding to or initiating a press
contact related to the policies or activities of the IMF or a
national political question, you should consult your supervisor,
who in turn may need to consult the head of your department and
the External Relations Department before you proceed with the
contact.
23. The IMF owns
the copyright for all written material you produce as
part of your official duties, and has the right to publish such
work in a manner it deems appropriate.
If the IMF
does not choose to publish your work, you
may, with the approval of your department and the External
Relations Department (EXR), publish your work elsewhere.
The same joint approval is
required for works (including public statements) prepared on
your own time, or prior to joining the IMF staff, if the subject
of the work relates to the IMF or its activities, or to any
national political question.
In contrast, no approval
is required if the subject is unrelated to the IMF, its
activities, or national political questions.
V.
Conflicts of Interest, including Personal Financial Affairs
Conflicts of interest
24. You should
avoid any situation involving a conflict,
or the appearance of a conflict, between your personal interests
and performance of your official duties.
In dealings with member
country authorities, suppliers, and other parties, you should
act in the best interest of the IMF to the exclusion of any
personal advantage.
To avoid potential conflicts
of interest, the IMF will seek to avoid assigning nationals to
work on policy issues relating specifically to IMF relations
with their home country, unless needed for linguistic or other
reasons.
This would also apply to
non-nationals who, given their individual circumstances, may
have a particular conflict of interest vis-à-vis the country or
its authorities.
If
a potential conflict exists, you should make prompt and full
disclosure to your supervisor and seek his or her views as to
whether you should recuse yourself from the situation that is
creating the conflict or the appearance of conflict.
If
you are engaged in IMF procurement activities and if you have,
or are considering having, any direct or indirect outside
interests, financial or otherwise, which might conflict or
appear to conflict with the interests of the IMF, you should
make this situation known to your supervisor and seek his/her
view on whether you should withdraw from participating in the
procurement activity.
If you are negotiating
for, or have an arrangement concerning, prospective employment
outside the IMF, you should maintain an arms-length relationship
with the prospective employer in all matters relating to the
work of the IMF.
For example, you should recuse
yourself from involvement in sensitive member country matters
that could benefit, or could be perceived to benefit, the
prospective employer.
Similar conduct is expected
of staff who are on temporary secondments
to the IMF from their parent institution.
Personal financial affairs
25. You are generally
free to conduct your personal financial affairs as you see fit
with two exceptions:
because of the
IMF's role in exchange rate surveillance,
all staff members are prohibited from engaging in short-term
trading (i.e., a combination of buying and selling within six
months) in gold, foreign currencies and closely related
financial instruments, for speculative purposes.
The term "combination" does
not include one way transactions, such as the selling or buying
of foreign exchange for household expenses, education or travel
expenses;
staff members are
prohibited from using, or providing to others, confidential
information to which they have access for purposes of carrying
out private financial transactions.
26. As many diverse
situations may arise where the general principle mentioned in
paragraph 25(b) above could be subject to various
interpretations, further guidance is provided below.
If you remain unsure on how to
proceed in a given situation, you should seek the assistance of
the officer designated to this effect by management.
Confidential information includes market-sensitive information
relating to pending IMF or government actions that, when
disclosed, are likely to have a material impact on the market
value of currency or other investment vehicles.
Examples
of such market-sensitive information may include information
about pending exchange rate or interest rate changes, major
fiscal or economic policy changes or initiatives, and, in some
cases, pending changes in top government officials or
developments in relations with the IMF (e.g., calendar of
missions or Board meetings).
The prohibitions above apply
to financial transactions effected by yourselves and by your
immediate family members, i.e., spouse and dependents.
The prohibitions above do
not apply to pre-existing financial holdings.
However,
if you hold prior investments in financial assets of a country
or group of countries to which you have been newly assigned
and with respect to which you are likely to have access to
confidential information, you should seek the views of the
officer designated to this effect by management who would advise
you whether you should divest these assets or refrain from
effecting changes in asset positions during your assignment.
Disclosures
27. You should disclose any financial
or business interests that you or your immediate family members
have that might be in actual or apparent conflict with your IMF
duties.
You should make this
disclosure to your supervisor or to the officer designated by
management for such matters. Supervisors and the officers
designated by management should make a written record of the
disclosure for the protection of the staff member.
28.
All staff members shall certify, according to a periodicity and
in a form to be prescribed by the Managing Director, that they
have read the policy on conflicts of interest and that they are
in compliance. If a staff member is unsure about the extent of
his/her compliance, he/she should provide further explanations
as provided for in the certification form. In addition, the
Managing Director may require certain categories of staff
members to file a confidential statement of financial interests
and activities, according to a periodicity and in a form
prescribed by the Managing Director. These statements shall be
filed with and examined by an officer designated by the Managing
Director.
VI.
External Activities
29. You need permission from
the IMF to engage in any outside employment, occupation,
business activity, or profession.
The IMF would not object to
your engaging in such an activity, provided that
(i) it does not interfere with
your ability to perform your regular work for the IMF;
(ii) it is compatible with the
IMF's rules on staff conduct;
(iii) it does not create a
conflict of interest; and
(iv) it does not violate
applicable immigration rules.
Your request should be cleared
with your department and forwarded to HRD, with the endorsement
of your department.
In some cases, especially
activities related to outside publications and speeches, your
request will need to be cleared by EXR also.
30. You may
participate in volunteer activities of a community or charitable
nature without advance clearance. However, if you are in doubt
as to whether an activity you are contemplating would run
counter to the criteria in (i)-(iv) above, you should seek
advice from the Staff Development Division, HRD.
Political activities
31. Staff members
need permission to engage in political
activities, except for activities such as voting, making legal
political contributions, and participating at the local, grass
roots, or community level. Staff members may not run for elected
public office without obtaining permission.
A staff member who accepts a
political appointment must offer to resign from the IMF staff.
The rules for public statements apply if, for example, you wish
to make a public statement endorsing a national political
candidate.
Acceptance of gifts, decorations and honors
32.
You should never solicit gifts or favors
in connection with your IMF duties. Gifts that are offered
should normally be declined.
However, you may accept a
small gift when it would create an embarrassment to refuse it.
Under current rules, if its value is clearly
less than $100, you may keep it and
need not report it.
If the value of the gift could
exceed $100, you should report it, along
with your estimate of its value.
The gift may have to be turned
in for an appraisal if there is a question about its value.
33. You are not allowed to accept any honors or decorations
given to you in connection with your official duties with the
IMF.
If there is no advance notice
of the honor or decoration, and it is impossible to refuse it,
then you may accept it on behalf of the IMF and then report it
to the IMF.
However, in cases where the
honor or decoration is in recognition of services unrelated to
the IMF, the IMF will permit acceptance of such recognition.
Post-IMF employment
34. Staff members who
separate from the IMF, or are on leave status, including leave
without pay, are expected to observe the
respective IMF rules on use or disclosure of confidential
information.
In particular, staff members
who separate from the IMF should not use or disclose
confidential information known to them by reason of their
service with the IMF and should not contact former colleagues to
obtain confidential information.
IMF employees are
prohibited from providing confidential
information to former colleagues, who should be treated
like any other outside party.
VII.
Examples
Basic standard of conduct
1.
A staff member fails to pay his or her
spousal or child support obligations, notwithstanding a court
order to do so.
Does
this violate the IMF's standards of conduct?
Yes.
Staff members may not take improper advantage of the fact that
the IMF is not subject to mandatory wage garnishments in order
to avoid such obligations.
2. A
staff member fails to comply with domestic violence laws or a
court order regarding visitation rights. Does this violate the
IMF's standards of conduct?
Yes. Staff members are
required to comply with laws against domestic violence. This
includes not only physical assault, but also violent acts and
the threat of violent acts to those in the staff member's
household. While the IMF will not become involved in purely
domestic disputes, as an international organization, the IMF has
an interest in ensuring that its staff members do not abuse any
immunities, engage in acts of cruelty against household members,
or violate court orders.
3. A
staff member receives a traffic ticket in the operation of a
motor vehicle. Does this violate the IMF's standards of conduct?
No. The type of unlawful conduct that would violate the
IMF's standards on private conduct is conduct that is so
serious, under the circumstances, that it would embarrass the
IMF or call into question a staff member's ability to perform
official duties. By contrast, fraud and theft would be serious
unlawful acts in violation of the IMF's standards of conduct.
Conduct within the IMF
4. I
am taking orders for Girl Scout cookies on behalf of my
daughter. May I ask colleagues whether they wish to place an
order?
Yes, so long as there is no coercion or
pressure placed on colleagues to make a purchase.
5.
I am aware that my colleagues have made false claims on their
travel claims following a mission. Should I report this?
You are not under any formal obligation to report unethical
behavior by colleagues. However, should you decide to report an
ethical breach by another staff member, you should do so without
fear of reprisal. You may also consider raising privately with
the colleague your concern about the unethical behavior. Under
no circumstances should you actively participate in, or
facilitate the commitment of, an ethical violation by another
staff member. Staff should also be aware that malicious and
unfounded whistle blowing is not acceptable behavior.
6.
A staff member hangs a reproduction in
his/her office of a famous painting of a nude. Another employee
in an adjacent office reports that this picture makes him/her
uncomfortable. Should the staff member be required to remove the
painting?
Although not all norms of behavior
constitute mandatory rules of conduct, it is nevertheless
expected that staff members will avoid actions that could
reasonably be deemed to create a hostile work environment or
make others uncomfortable in the office. Assuming that this
situation meets these criteria, the staff member should be
respectful of his/her colleague's feelings and remove the
painting.
7. My daughter is away at
a university abroad. In order to cut down on the cost of
telephone calls, I occasionally send her e-mails from the IMF.
Is this a violation of the IMF's rules on conduct?
The primary purpose of the E-mail facilities is for official
communications. The use of E-mail at headquarters for personal
purposes is permitted as long as this does not encroach on work
time, overburden the electronic network, or involve a
significant extra expense for the IMF.
8.
I am organizing a series of sermons to be delivered in my church
by outside speakers. In this connection, I need to make and
receive some phone calls. Can I do this from my office?
Yes, as long as the number and duration of such calls are
limited and do not interfere with the performance of your
duties. Generally, spending a small amount of time on personal
calls is permitted within the constraints established by the
supervisor. If significant time has to be spent on personal
matters, you should make up the time by staying later in the
office or you should make the calls during the lunch break. You
are required to pay for any long distance calls.
Use and
disclosure of information
9. You
receive a call from outside the IMF, requesting data on the
balance of payments of Country X, as reported in the Recent
Economic Developments (RED) for the last Article IV
consultation. How do you respond?
You could refer
the caller to EXR's public information number (623-7300) or you
may provide the data if you know it is in the public domain.
10. You are the desk economist for
Country Y, and receive a request from an international bank for
information on the status of negotiations on a new IMF
arrangement with Country Y. How do you answer?
You
may disclose information about the negotiations only to the
extent you have been authorized to do so. If you are uncertain
as to how far such authorization extends or what is appropriate
in the circumstances, you could pass the inquiry to either EXR
or to the mission chief (or other senior officer in your area
department), who can determine how much information should be
disclosed.
11. You are working on
Country Z, which has both an arrangement with the IMF and a
Structural Adjustment Loan with the World Bank. Your Bank
counterpart, seeking clarification of the monetary targets,
specifically asks for a copy of the Board paper that
incorporates the monetary projections, which he says have been
published in a national newspaper in Country Z. How do you
respond?
You may not give confidential IMF
documents to outsiders, including the World Bank, without prior
authorization. The fact that the paper has reportedly been
leaked is irrelevant-it is a IMF document, and only the
Executive Board can authorize its publication. Your best course
of action is to seek guidance from the mission chief, or another
senior officer of your department.
12.
You are an expert on tax policy and would
like to write a letter to the editor of a newspaper regarding a
national sales tax. Does your letter need IMF clearance?
Whether your letter to the editor requires IMF clearance
depends upon the issues covered and the context in which the
letter is being written. This includes whether the author is
identified as a IMF staff member, whether the letter could
reasonably be expected to have an adverse effect on the policies
or activities of the IMF, and whether a national sales tax is a
significant issue in the IMF's relations with the country in
question (the presumption is that it could be a significant
issue).
13. You have expertise
(acquired outside the IMF) on the problem of inadequate child
care in your city and a local journalist would like to interview
you. Do you need to clear this press contact in the IMF?
No, so long as you avoid commenting directly upon national
policy issues such as controversies over national budget outlays
for child care. If you do intend to touch on such controversies,
you may need to seek IMF clearance for your comments in advance
depending upon the issue.
14. I am
invited to give a talk on the international agreement to ban
land mines. Do I need to clear my outline within the IMF?
If this is currently a matter of national political
controversy considering the context of the talk, and the content
is such that it may reasonably be expected to embarrass the IMF
or have an adverse effect on IMF policies and activities, you
would need clearance from the IMF before accepting the
invitation.
Conflicts of interest, including personal
financial affairs
15. I work on emerging Country X, may I
acquire mutual funds specialized in:
this country? this
region?
You may not if you make this acquisition on the
basis of confidential information that you have obtained in the
course of your work. For instance, you are prohibited from
buying mutual funds if this decision is based on the information
of a pending change in interest rates that you have learned
about during confidential discussions with the authorities of
the country to which you are assigned. In addition to this
prohibition, you should not be perceived by a reasonable
outsider to have acted on the basis of your access to
confidential information in making an acquisition. This is why
such acquisitions are generally discouraged. If in doubt,
consult the officer designated to that effect by management
before undertaking such investment.
16.
I work on Country X desk. Do the rules
above mean that I may not hold Country X mutual funds, equities,
or Treasury bills?
No, they do not prohibit such
holdings. They require that you refrain from conducting
financial transactions which an outsider could reasonably
consider to be influenced by your access to confidential
information. As an example, selling Country X Treasury bills
shortly after you have been discussing interest rate prospects
with the authorities of Country X for your Article IV
surveillance work could reasonably be perceived by an outsider
to be influenced by confidential information obtained in the
course of your work.
17. May I sell
gold?
In general, you may, as long as you do not
trade in gold. You may not, of course, make use of confidential
information obtained in the course of your duties in the IMF as
the basis for initiating a sale. Therefore, if you learned, for
example, that the IMF was planning to sell gold, you would be
prohibited from selling gold prior to the public announcement of
a sale of gold by the IMF.
18. May
I sell French Francs forward to protect the U.S. dollar value of
the proceeds that I am expecting to repatriate to Washington
following the sale of my house in France?
Yes, you
may. The prohibition stated in paragraph 25(a) (combination of
buying and selling within six months) does not apply in this
case.
19. I have recently been
involved in the assessment of the financial sector of Country X
where I came to learn about the financial situation of some
commercial banks. Is it all right for me to take either a short
or long position in their traded bonds or stocks?
No, it is not. You would be taking advantage of confidential
information that you might have obtained in the course of your
duties. Even if you had not been entrusted with any such
information, others could reasonably perceive you as having been
and, for that reason, you should abstain from such trading.
20. A staff member has been recruited
by an investment bank. Before his departure, he is asked to
participate in a IMF mission to a country that is undergoing a
financial crisis. In the course of this mission, he will no
doubt come across confidential information that will be useful
to his next employer. Should he go or should he recuse himself?
No, he should not go. This situation creates the appearance
of impropriety in light of his imminent plans and it would be
difficult or impossible for him to refrain from using
information learned during the mission in his next job. He
should bring this conflict of interest to the attention of his
supervisor, who would be expected not to send him on the
mission.
21. I learned through my
brother-in-law, who works for a software firm, of a new product
of that firm that may be useful for the IMF. May I arrange a
meeting between the software firm and representatives of the
IMF?
Yes, so long as you do nothing to influence
the IMF's decision whether to acquire the software or otherwise
use the products of this firm, as you would have a conflict of
interest in dealing with such matters.
External activities
22. I have been invited by a
university located in the U.S. to teach a course on
macroeconomics, for which I will be paid $5,000. Can I accept
the invitation?
You can accept this invitation,
provided that it is approved by your department, EXR, and HRD
and that the work, including preparation, is not done on office
time. If prohibited by U.S. law, you may not accept remuneration
for the work if you are not a U.S. national or Permanent
Resident. (Currently, under U.S. law G-4, staff can accept
"honoraria" of not more than $500 per occasion (no more than two
occasions per year)).
23. I am a
Resident Representative in Country X and I have been asked by a
private investment fund to provide advice on a strategic plan
for investment and to receive remuneration for this service. Can
I accept this offer?
No. This would create at
least the perception of a conflict of interest and perhaps also
an actual conflict of interest because you have access to
confidential information.
24. I
own an apartment that is currently rented to generate some
income. Must I report it to the IMF to avoid violating the rules
on outside activities?
No. You may rent your
properties without advance clearance, as long as the rental has
not become an organized business.
25.
May I participate in a lawful public
demonstration on an issue not closely related to the work of the
IMF, for example, abortion policy or nuclear disarmament,
without obtaining advance clearance?
Yes, provided
that you participate in a manner that does not publicly identify
your connection to the IMF. If, however, you intend to make a
public statement on a "national political question," advance
clearance is required (see paragraphs 21 through 23 above).
26. May I join and participate in the
activities of a non-governmental environmental, animal rights,
religious, or civic organization?
You may join
both formal and informal clubs and non-governmental
organizations, if you can join and participate without
identifying yourself in connection with the IMF, and without
bringing embarrassment to the IMF or adversely affecting its
interests.
27. May I sign a
petition supporting a particular political candidate or endorse
a candidate for elected office in my country?
You
may sign a petition supporting a political candidate or endorse
a candidate for elected office in the country in which you are
qualified to vote, or join a political party, if you can do so
without publicly identifying yourself in connection with the IMF
and without bringing embarrassment to the IMF or adversely
affecting its interests.
28. I am
invited to accept an honorary degree in connection with my
alumni activities and other services unrelated to the IMF. May I
accept?
You should seek clearance from the IMF,
which will grant permission to staff members to accept honorary
degrees awarded in recognition of achievements and services
unrelated to the IMF.
Dear
Potential, New or Sitting Member of the Board,
You
have the duty to prudently represent the interests of the
shareholders.
You have to understand the needs and desires
of employees, customers and regulators.
You have to do your
best to understand the risks in your organization, and to exercise
oversight.
Year after year, you have to do more, and you
have more responsibilities.
Our Mission: To help you make
informed business decisions in good faith.
Our International
Association provides networking, training, certification, alerts and
updates you can use.
Best Regards,
George
Lekatis
President of the International Association of Potential,
New and Sitting Members of the Board of Directors (IAMBD)
General
Manager, Compliance LLC
1200 G Street NW Suite 800, Washington DC
20005, USA
Tel: (202) 449-9750
Email: lekatis@members-of-the-board-association.com
Web:
www.members-of-the-board-association.com
HQ: 1220 N. Market Street
Suite 804, Wilmington DE 19801, USA
Tel: (302) 342-8828
|
.gif){kind=small}
.gif){kind=small}
.gif){kind=small}