Office of Ethics & Business Conduct FY 15 ANNUAL REPORT independence, impartiality and integrity O FFI CE O F ETHI CS AND BUSINESS CO ND U C T The Office of Ethics and Business Conduct (EBC) of the World Bank Group promotes the development and application of high standards of conduct by staff in the performance of their duties based on the Core Values of the World Bank Group (WBG) through: ■■ Providing guidance in managing conflict of interest risks ■■ Reviewing and investigating allegations of misconduct ■■ Engaging in business ethics-related outreach. EBC is an independent vice presidency within the WBG that reports directly to the president. FY 15 ANNUAL REPORT ii OFFICE OF ETHICS AND BUSINESS CONDUCT  FY15 ANNUAL REPORT Photo: Joseph Grant Ellis, Jr. CONTENTS ABBREVIATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv LETTER FROM THE VICE PRESIDENT AND CHIEF ETHICS OFFICER. . . . . . . . . . . . . . . . . . . . . v ADDRESSING CONFLICT OF INTEREST RISKS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 EBC INVESTIGATIONS: FY15 OUTCOMES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 EBC’S OUTREACH PROGRAMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 EBC STAKEHOLDER ENGAGEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 CONTACTING EBC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17  iii iv OFFICE OF ETHICS AND BUSINESS CONDUCT  FY15 ANNUAL REPORT ABBREVIATIONS COI conflict of interest DOI Declaration of Interests EBC Office of Ethics and Business Conduct FY fiscal year GEF Global Environment Facility HR Human Resources HRDVP Office of the Vice President of Human Resources IBRD International Bank for Reconstruction and Development IDA International Development Association IFC International Finance Corporation IJS Internal Justice Services INT Integrity Vice Presidency MIGA Multilateral Investment Guarantee Agency OIC Outside Interests Committee OMB Ombudsman Services PLO personal legal obligations PRS Peer Review Services SMT senior management team U.S. United States VP vice president WBG World Bank Group LETTER FROM THE VICE PRESIDENT AND CHIEF ETHICS OFFICER I n Fiscal Year 2015, for the first time, EBC staff engaged directly in face- to-face conversations with every WBG manager on the important topic of creating a collaborative and non-retaliatory workplace. A follow–on e-learning for all staff “Preventing Retaliation at the World Bank Group” was also released in the last quarter of FY15, and nearly 700 staff com- pleted the training. This was an extraordinary mobilization of the limited resources of EBC, while continuing to deliver a growing work program. The resulting discussions generated institutional insights and helped to identify solutions to fostering a workplace culture that reflects our values. In addition to the anti-retaliation training effort, significant progress was made on programs to increase awareness and prevention of sexual harassment. This initiative will be ready for deployment in FY16. Also worth highlighting among FY15 accomplishments is EBC’s Ethics at Work learning series, which aims to discuss topical issues that have an ethical angle. The series included two successful sessions that focused on the pathology of bureaucracy and the ratio- nality of emotions. Through staff trainings, EBC has continued its efforts to prevent misconduct, taking steps to identify and share lessons learned from its cases so that even in matters that cannot be substanti- ated as misconduct, the underlying concern is appropriately addressed. For these cases, managers, Human Resources (HR), and the Internal Justice Services have been key partners. Regarding EBC’s investigative work program, in FY15, the office conducted 45 investigations. A number of the allegations investigated by EBC and described in this report were egregious and resulted in termination of employment, demotion and other disciplinary measures. In some cases, staff members availed themselves of their right of appeal to the World Bank’s Administrative Tribunal; the tribunal validated EBC’s findings and consistently upheld the integrity of EBC’s investi- gative process. On the conflict of interest (COI) risk management front, we significantly simplified the World Bank Group’s Declaration of Interests Program, a reengineering that has enabled EBC to reduce program costs by nearly 70 percent. About 2,250 staff are required to file declarations annually, a number of whom expressed appreciation for the streamlined process. For the first time, both staff and the Senior Management Team/Vice Presidents declaration programs achieved full compliance before the end of the fiscal year. EBC’s conflict of interest advisory services, addressing both personal and operational COI concerns, increased steadily over the course of FY15, following a drop in FY14. Most queries received responses within 48 hours. FY15 advisory work included more direct contributions to oper- ations when expertise in ethics and COI was required. In addition, EBC collaborated with internal stakeholders to update and simplify COI-related staff rules.  v vi OFFICE OF ETHICS AND BUSINESS CONDUCT  FY15 ANNUAL REPORT Having been appointed Vice President and Chef Ethics officer on October 1, 2015, it‘s an honor and a privilege for me to serve the institution and staff in this capacity. I am appreciative of my EBC colleagues support and hard work. I would like to express my deep gratitude to them for their com- mitment and dedication to building a more ethical institution that reflects the World Bank Group’s core values. I would like to reassure the team and institution of my commitment to continually set the direction, make decisions and inspire the team for quick and collective implementation of our goals in the New Year. We will focus on sensitizing staff and management to the presence, role, services and value proposition of EBC. EBC will continue to be proactive in addressing ethics related risks through training, outreach, counselling and advisory services. The goal is to have a nimble and agile team which consistently provides quality and timely service to all staff and management with indepen- dence, impartiality and integrity. Ousmane Diagana Vice President and Chief Ethics Officer ADDRESSING CONFLICT OF INTEREST RISKS E BC provides timely and actionable advice and guid- increases in requests relating to vendor procurement ance to address queries related to both personal and external service, while queries on personal financial and WBG operational conflict of interest matters. interests declined relative to FY14 (table 1). Despite In FY15, EBC received 830 requests for advice, an the increased volume of queries, EBC’s response time 11.6 percent increase over FY14 and a return to the improved significantly. Nine out of ten advisory queries levels seen in previous years. There were significant received responses within two calendar days (figure 1). TABLE 1. CONFLICT OF INTEREST CONSULTATIONS BY CATEGORY, FY13–FY15 Category FY13 FY14 FY15 Outside activities 286 265 294 Future or former employment 131 124 120 Vendor procurement 41 37 51 Operational 25 22 15 Close relatives/relationships 102 109 137 External service 41 38 51 Gifts, medals, honors 76 52 53 Personal financial interests 37 35 26 Public statements 41 39 31 Other 55 23 52 Total 835 744 830 % change from prior fiscal year 0.4 (11.8) 11.6 FIGURE 1. COI QUERY RESPONSE TIME IN CALENDAR DAYS, FY13–FY15 (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY13 FY14 FY15 Less than 2 days 3–5 days 6–7 days More than 7 days  1 2 OFFICE OF ETHICS AND BUSINESS CONDUCT  FY15 ANNUAL REPORT EBC’s statistics on advisory requests provides key situations where the actions or decisions of the WBG demographic information: could be influenced by a staff member’s family relation- • Seventy-two percent of queries came from staff at ship, or be perceived as capable of such influence. EBC the World Bank and the International Development assists with the identification of appropriate risk mitiga- Association, 23 percent came from the International tion measures. Finance Corporation, and the remainder was spread across other Bank Group institutions (figure 2). WBG’s Declaration of • Nearly half of EBC’s advisory requests (49 percent) were from grade GE-GG–level staff, one quarter Interests Programs were from GH and above, and the remainder from EBC oversees the WBG’s two Declaration of Interest other groups. (DOI) programs, which are designed to mitigate conflict • Sixty-five percent of EBC’s queries came from of interest risks. The Senior Management Team and Vice Washington, D.C.-based staff, with the remainder Presidents Program (SMT/VP Program) requires the 40 from country offices. most senior individuals in the organization, including the WBG President, to complete a declaration that is sum- FIGURE 2: CONFLICT OF INTEREST CONSULTATIONS marized and publicly posted on the Internet. BY INSTITUTION, FY15 The separate Staff DOI Program requires manager- MIGA, 12 level staff members, as well as designated staff in other GEF, 4 OTHER, 25 sensitive roles, to complete a confidential DOI that is reviewed by EBC and external consultants to iden- tify possible conflict of interest risks. (Members of the WBG Board are also subject to financial disclosure in a program that is run independently by the Corporate IFC, 189 Secretariat.) THE WBG SENIOR MANAGEMENT TEAM IBRD, 601 AND VICE PRESIDENTS DOI PROGRAM All new vice presidents receive individual briefings at the start of their appointment on compliance with the conflict of interest requirements of the WBG, and senior management regularly consult EBC for guid- Note: IBRD = International Bank for Reconstruction and Development ance on conflicts of interest concerns. Like the Staff DOI and International Development Association; IFC = International Finance Corporation; MIGA = Multilateral Investment Guarantee Agency; Program, the SMT/VP declaration form was simplified in GEF = Global Environment Facility. FY15, facilitating the review process. Declarations for the 2014 year program were received, reviewed, and posted Consistent with years past, more than a third of to the Intranet prior to the close of FY15, approximately EBC’s advisory requests were related to outside activi- four months earlier than in past years. ties that staff members wish to perform in addition to their WBG work. Activities such as teaching, lecturing, writing, and contributing to nonprofit organizations THE STAFF DOI PROGRAM generally do not require authorization, provided that they are permissible by law, are unconnected with the EBC introduced a number of changes to the 2015 Staff WBG, and do not negatively reflect on the institution. Program that improved and expedited the process for However, other activities require authorization by the filers. These included: Outside Interests Committee (see below). • Offering a “no changes certification” option. Filers The second-largest category of advisory queries in who had no changes to either their job description FY15 was concerned close relatives of staff members, or to the information disclosed in their 2014 DOI including spouses and partners. EBC received 137 could click a “no changes certification” and quickly advisory requests of this nature, generally involving complete the process. ADDRESSING CONFLICT OF INTEREST RISKS 3 • Changes to real estate reporting requirements. contractor to EBC for further review (figure 3). This is Filers need only disclose real estate that is either consistent with the proportion of filings requiring review located in a country where the WBG is financing in other organizations with DOI programs. In many of projects providing advisory services, rented, or these cases, more information was needed from the occupied at no cost by another WBG staff member filer. Upon completion of its review of additional infor- (other than one’s spouse). mation, EBC determined that no further action was • An alternative procedure for filers with lengthy required in 109 of the referred DOIs. Some declarations declarations. Individuals with more than 30 assets required further research on the items declared by fil- to declare were provided personal assistance from ers in light of the staff member’s roles and responsibili- an EBC advisory team member to facilitate the ties. In 24 referred cases, EBC provided guidance to completion of their declaration. the staff members, such as directing them to disclose a particular asset to their manager, recommending that In addition to these improvements to the filer expe- they avoid routine professional contact with a spouse, or rience, in FY15 EBC reengineered and streamlined the recommending that they refrain from working on certain overall DOI program administration and review process. projects or deals. Five filers were notified that an activity A significant portion of the more complex conflict of they had declared required approval from the Outside interest analysis is now undertaken by EBC staff directly Interests Committee, such as serving on a for-profit rather than by an outside contractor. This change alone company’s board of directors. In three cases, the finan- significantly reduced consultancy costs for administering cial holding of the staff member was deemed to pose a both programs. COI risk that needed to be managed. For two of these During the 2014 calendar year program, which was cases, EBC recommended that the staff members freeze launched and closed in FY15, 2,255 staff members were their position on the asset, and in the third case EBC required to file a declaration. Similar to the 2013 pro- recommended that the staff member divest the holding. gram, no fines were imposed on late filers, and full com- pliance was achieved by June 20, 2015. Under the new DOI review protocol described above, 96 percent of Outside Interests Committee 2014 Staff Program declarations were reviewed in FY15, compared with 86 percent in FY13 for the 2013 program. WBG Staff Rules require that staff members seek the As the deadline approached, EBC staff reached out pro- prior approval of the Outside Interests Committee (OIC) actively to individuals who had not yet filed and offered before carrying out certain outside activities in their direct assistance. Only a small minority of cases required personal capacity. EBC chairs the OIC, which includes EBC to request the support of the filer’s senior manager representatives from the Office of the Vice President of to bring the individual into compliance. Human Resources (HRDVP), the Legal Department, Of 2,247 declarations received for the staff program, the Staff Association and from the staff at large. 6 percent or 141 cases were referred by the external FIGURE 3: FOLLOW-UP ACTIONS FROM THE 2014 STAFF DOI PROGRAM 3 5 24 Freeze / divest Directed to obtain OIC approval Total DOI Filed 141 Guidance provided Referred to EBC for Reviewed by EBC and considered further review 2,247 109 no further action necessary Note: DOI = Declaration of Interest; OIC = Outside Interests Committee. 4 OFFICE OF ETHICS AND BUSINESS CONDUCT  FY15 ANNUAL REPORT In FY15, the OIC reviewed 11 petitions, which is a support, board directorships of nonprofit organizations, significant decrease from FY14. Nine petitions were and work for a for-profit sports league. The two petitions approved; they concerned activities related to family that were denied involved staff member requests for businesses, candidacy for political office, community board directorships. EBC INVESTIGATIONS: FY15 OUTCOMES E BC reviews allegations of staff misconduct including internal justice service. In FY15, 22 enquiries were workplace-related grievances, travel and benefits referred to other parts of the IJS. fraud, and staff noncompliance with personal legal In some instances, staff members seek guidance obligations. In FY15, EBC received 297 enquiries and from EBC on how to manage situations confronting complaints related to Staff Rule 3.00, an 18 percent them in the workplace. In FY15, 16 complaints were increase over FY14 (Table 2). simply noted in EBC’s case files for its records only, Upon receipt of a complaint, EBC follows a consis- generally reflecting a staff member’s desire to discuss a tent three-stage process: intake and assessment, initial workplace situation without pursuing further action at review, and investigation. the time. In FY15, a total of 119 enquiries were closed after intake. Nonetheless, EBC conducted 64 staff inter- views with respect to these intakes. INTAKE AND ASSESSMENt EBC receives enquiries and complaints from all Bank INITIAL REVIEW Group staff members irrespective of their location. Of the 297 enquiries and complaints received in FY15, 70 When a complaint progresses to initial review, EBC percent emanated from staff in headquarters and 30 assesses the allegation to determine whether there are percent from country offices. sufficient grounds to initiate an investigation. The initial Upon receiving an enquiry or complaint, EBC review typically involves interviews with witnesses and assesses the matter to evaluate whether the behavior a review of documents. The initial review is carried out as alleged would constitute misconduct under the Staff without the involvement of the staff member who is the Rules and would be suitable for investigation or more subject of the allegation. If after an initial review, EBC appropriately resolved by a less formal resource within determines that the allegation is either unfounded or the Internal Justice Services (IJS). A tenet of the Internal unsubstantiated, or that the evidence collected does Justice Services is to try to resolve matters at the lowest not otherwise justify an investigation, the case will be level. EBC’s data show that a number of the enquiries closed. The reporter of the allegation is notified of such received, such as disputed managerial decisions and a closure. A case closing memorandum is prepared interpersonal conflicts, either fall outside EBC’s mandate for EBC’s records. An alternative outcome of an initial or may be more appropriately addressed by another TABLE 2: INVESTIGATION CASELOAD FY13–FY15   FY13 FY14 FY15   Number Number Number Carried over from previous years 34 29 46 New Complaints 173 172 178 Subtotal 207 201 224 New Consultations/Advisory Services 83 79 119 Total Matters (Cases & Consultations) 290 280 343 Complaints Closed 178 155 167 Consultations/Advisory Closed 83 79 119 Ending Case Load 29 46 57  5 6 OFFICE OF ETHICS AND BUSINESS CONDUCT  FY15 ANNUAL REPORT review is that EBC assists the parties concerned in 10 cases, HRDVP exonerated the subject staff, conclud- reaching a resolution of their differences. ing either that no misconduct had occurred or that there In FY15, 121 allegations were carefully reviewed and was insufficient evidence, an equally important outcome closed after the initial review process. A total of 289 staff for both the Bank and its staff. Decisions are pending interviews were conducted in connection with these with the HRDVP on the remaining three FY15 cases. The allegations, in addition to extensive review and analysis determinations made by HRDVP for cases submitted in of other evidence. FY15 is set forth in table 3. Figure 4 shows the type of cases investigated. INVESTIGATION OF CASES FY15 HRDVP DISCIPLINARY DECISIONS At the conclusion of an initial review, if EBC determines that there is sufficient basis to the complaint, the In FY15, the HRDVP issued several disciplinary decisions matter will proceed to investigation. An investigation ranging from letters of censure, terminations, permanent enables EBC to either establish enough evidence of bars from being rehired, to restrictions of access to WBG possible misconduct, determine that there is insufficient facilities for engaging in misconduct based on substan- evidence to conclude that the allegation is true or to tiated cases. A staff member has the right to appeal refute the allegation and exonerate the staff member. HRDVP’s disciplinary decision to the tribunal, the judg- EBC’s role as impartial fact finder entails reviewing any ments of which are binding on the World Bank Group. relevant information including documents, witness tes- Some of the substantiated allegations of misconduct timonies, and the response from the subject of the alle- with the disciplinary actions are described below; gation. If EBC finds sufficient evidence to substantiate • A staff member abused his authority, misrepresented an allegation of misconduct, EBC provides a report of facts, and misused Bank Group resources by procur- the investigation to HRDVP for a determination of ing a customs duty exemption for an imported misconduct and imposition of sanctions. If the allegation shipping container bearing his name but containing is unsubstantiated, the matter is closed. goods belonging to a third party (unaffiliated with the In some instances, EBC’s review finds that although WBG). His employment was terminated, his access the allegation cannot be substantiated, the concern to WBG premises was restricted, and a written cen- could result in a serious workplace issue if not properly sure was placed on his personnel record indefinitely. addressed. In these cases, EBC will provide guidance to • A staff member surreptitiously placed his phone staff members for addressing these concerns. In other under the skirt of a female short-term consultant cases, EBC will involve HR business partners and manage- and made inappropriate video recordings of her. ment at various levels to facilitate a resolution of the issue. His employment was terminated. He was also made In FY15, EBC investigated 45 cases of alleged mis- ineligible for future employment, his access to WBG conduct. Of those cases, 29 resulted in the submission premises was restricted, and a written censure was of investigative reports to HRDVP for a disciplinary deci- placed in his personnel record indefinitely. sion. This reflects a 70 percent increase from FY14, when 16 cases were referred to HRDVP for a decision. A total • A staff member was found to have bullied three of 102 staff interviews were conducted in the course of short-term consultants who were her subordinates. these 29 investigations in addition to extensive review She was made ineligible for promotion for a year, and analysis of other evidence. In 17 of the 46 cases and a written censure was placed on her personnel investigated, EBC did not find sufficient evidence to record for a year. substantiate the alleged misconduct and consequently • A staff member asked a security officer to give closed the cases. During the course of investigating her relative access to the office unaccompanied these 17 unsubstantiated cases, a total of 166 staff inter- outside of business hours. The relative worked on a views were conducted in addition to extensive review WBG computer using the staff member’s password. and analysis of other evidence. The staff member was sanctioned with a letter Of the 29 reports submitted to HRDVP in FY15, of reprimand, which will remain in her personnel HRDVP determined that misconduct had occurred in record for the duration of her term contract. 16 cases and imposed disciplinary sanctions. Examples • A staff member submitted a fraudulent document in of these substantiated allegations appear below. In support of a sick leave request. The staff member’s E B C I N V E S T I G AT I O N S : F Y 1 5 O U T C O M E S  7 TABLE 3: FY15 CASES SUBMITTED BY EBC TO HRDVP Number Subject’s of Cases Category of Misconduct/Location HRDVP Decision Grade 2 Misuse of bank resources (benefits, No misconduct found GC travel & bank assets): Washington, D.C. (1), Country Office (1) Termination, bar to rehire, restriction of access to Bank GI buildings and written censure (in file indefinitely) 10 Noncompliance with Staff Rules (theft, Termination, bar to rehire, restriction of access to Bank GE leaks of confidential information, buildings and written censure (in file indefinitely) conflict of interest): Washington, D.C. (2), Country Office (8) Demotion to GG, Ineligibility for promotion for three years, GH reduction in salary by 5%, and written censure (In file for three years) Reduction in future pay, written censure (in file for two years) (2) GH; GB No misconduct found (2) UA; GH Memorandum of understanding GI Termination, bar to rehire, restriction of access to Bank GD buildings, and written censure (in file indefinitely) Demotion to GF, Ineligibility for promotion for three years, GG; GG reduction in salary by 5%, and written censure (In file for three years) Written censure (in file through duration of term contract, May GE 2015) 8 Harassment (sexual harassment, Decision pending (2) GG; GK sexual orientation & hostile work environment): Washington, D.C. (7), Termination, bar to rehire, restriction of access to Bank GF Country Office (1) building, and written censure (in file indefinitely) Ineligibility for promotion for three years and written censure GE (in file for three years) No misconduct found (3) GE; GG; GG Ineligibility for promotion for a period not to exceed FY16 and GG written censure in file for one year 2 Retaliation (use of IJS system and No misconduct found (2) GI; GH whistle-blowing): Washington, D.C. (2) 3 Personal legal obligation (failure to pay Written censure (until proof of compliance from IRS), GG child/spousal/divorce support, US taxes ineligibility for salary review Increase for 2015, and ineligibility & personal loans): Washington, D.C. (2), for promotion for two years Country Office (1) Bar to rehire (pending proof of compliance) UC Decision pending GC 1 Abuse of Authority: Country Office No misconduct found (1) GB 2 G5 Domestic (G5 domestic issues): Written censure (in file for one year) and removal of G5 GH Washington, D.C. privilege for one year Written censure (in file for three years) and removal of G5 GE privilege indefinitely 1 Unprofessional conduct/negligence: No misconduct found (1) GG Washington, D.C. Note: G = grade; UA = ungraded staff. employment came to an end before the investiga- • A staff member who repeatedly failed to take her G5 tion was concluded. She was made ineligible domestic employee to the G5 orientation perma- for future employment with the WBG, and a nently lost the privilege of employing a G5 domestic written censure was placed in her personnel employee. A written censure was also placed in the record indefinitely. staff member’s personnel record for one year. 8 OFFICE OF ETHICS AND BUSINESS CONDUCT  FY15 ANNUAL REPORT FIGURE 4: 46 INVESTIGATIONS CASES, FY15 GS Domestic 2 Retaliation 2 Abuse of authority 3 Personal legal obligation 3 Non-compliance with Staff Rules 15 Misuse of Bank Resources 6 Harrassment 15 Below are summaries of some of the cases in which TURNAROUND TIME HRDVP made no finding of misconduct: EBC has implemented service standards and strives to 1. A staff member alleged that a colleague yelled complete its investigations within six months of receiv- “burn in hell” at him, scolded him for bringing a ing a complaint. In FY 15, EBC’s average processing case to EBC, and disclosed a confidential Peer time for closure of misconduct cases was 131 days. In FY Review Services report to a nonparty. HRDVP 14 and 13, the average processing times for case closure found that the staff member’s actions did not was 64 and 83 days respectively. These processing times amount to misconduct even though the staff are well within the 6 month maximum recommended by member’s behavior was inappropriate and the Volcker Panel. unprofessional. EBC investigators achieved these timelines despite 2. EBC submitted a report to HRDVP concerning their extremely challenging schedule resulting from the an allegation that a staff member barged into deployment of the face-to-face anti-retaliation training. another staff member’s office during a meeting In FY15, EBC staff delivered 87 sessions of the three- and shouted and pointed his finger at him. The hour anti-retaliation training to over 1,100 managers in staff member admitted engaging in the conduct both headquarters and country offices. Investigators and apologized. The HRDVP held that there was cumulatively spent 270 days in country offices reaching no misconduct but said that the staff member’s out to 378 managers and over 1,400 staff members in behavior raised serious concerns. numerous anti-retaliation and misconduct trainings. In 3. A staff member allegedly participated in an FY15, EBC’s investigations team comprised four full-time interview with the media without prior authori- investigators, one analyst, one senior program assistant, zation, and this interview was later published. one program assistant, two extended-term consultants, The HRDVP found that the staff member’s two short-term consultants, one extended-term tempo- undisputed behavior raised serious concerns rary, and one short-term temporary. but, after reviewing the surrounding circum- stances, concluded that the staff member had not engaged in misconduct. E B C I N V E S T I G AT I O N S : F Y 1 5 O U T C O M E S  9 JUDGMENTS OF THE WORLD contained in the Code of Conduct, thereby violating his due process rights. He also argued that the Staff BANK GROUP’S ADMINISTRATIVE Rules did not impose any obligation on a supervisor to TRIBUNAL ON EBC CASES disclose the existence of a sexual relationship unless the supervisor deemed such disclosure necessary in order In FY15, the World Bank Administrative Tribunal reiter- to resolve a conflict of interest. The tribunal held that ated the importance of EBC’s mandate and confirmed EBC did not violate the applicant’s due process rights by EBC’s application of Staff Rules in several decisions. The applying the Code of Conduct and Staff Rules. It found decisions concerned applicants who challenged EBC’s that, as a senior staff member, the applicant had an investigative procedure and findings and also HRDVP’s obligation to comply with the WBG’s rules. The tribunal findings that they had committed misconduct in viola- further found that a conflict of interest arose automati- tion of Staff Rule 3.00. The tribunal also confirmed that cally when the manager became involved in a sexual EBC investigators followed due process in instances in relationship with his subordinate and that this was true which the applicants had challenged EBC’s investigative irrespective of whether he took any action against the process. best interests of the WBG. In CT v. IBRD (Decision 512), the applicant (a level In CK v. IBRD (Decision 498), the applicant (a level GF staff member), using her Bank computer, exchanged GG male staff member) had been demoted by HRDVP emails containing ethnic slurs and racial epithets about upon a finding of misconduct following allegations that her manager with another colleague. The emails were he sexually harassed his subordinate, a female short- unintentionally transmitted to the applicant’s manager. term consultant. The applicant alleged bias in EBC’s Challenging HRDVP’s finding of misconduct, she con- investigation and procedural irregularities in the manner tended that EBC denied her due process rights by fail- in which HRDVP concluded its decision. The tribunal ing to interview her character witnesses. The tribunal validated EBC’s findings and also found from its own validated EBC’s findings and held that EBC did not independent review of the record that there was no evi- violate her due process rights by failing to interview her dence of bias by EBC or HRDVP. character witnesses as her character was not at issue on In CS v. IBRD (Decision 513), the tribunal also upheld the question of whether she committed the alleged mis- EBC’s findings that the applicant’s allegations of retalia- conduct. The tribunal further clarified that there was no tion and harassment by his manager could not be sub- provision in Staff Rules that required EBC to interview stantiated. In this case, the applicant had challenged the character witnesses. Bank’s decision not to renew his term appointment. He In CR v. IBRD (Decision 511), the applicant was a alleged that the Bank had “fabricated” the reasons for senior adviser (level GI) involved in a sexual relationship the nonrenewal decision, which, he contended, was in with a subordinate, a female short-term consultant. After fact an act of retaliation related to (i) his outspoken sup- its investigation, EBC did not find sufficient evidence port for reform initiatives at the Bank, which he regularly to substantiate the allegations of sexual harassment posted on the Bank’s Intranet, and (ii) the fact that he or retaliation. However, EBC found sufficient evidence had reported his manager’s allegedly harassing behavior of a failure to resolve the conflict of interest that arose to his director. The tribunal found that the applicant had as a result of the sexual relationship. The applicant failed to substantiate his claim that the nonrenewal deci- (who resigned in the course of the investigation) then sion was an act of retaliation. The tribunal further found challenged HRDVP’s finding of misconduct and the that while the records indicated that the applicant’s rela- sanctions imposed on him. He argued that certain tionship with his manager became difficult, there was factual findings by EBC were mistaken and that EBC insufficient evidence to support a finding of harassment. and HRDVP tried to amend the Staff Rules through the Code of Conduct by wrongly holding him to a standard EBC’S OUTREACH PROGRAMS I n FY15, outreach, communication, and training Addressing Fear of remained a high priority for EBC. EBC undertook Retaliation and Reprisal different activities aimed at fostering staff members’ awareness of the Bank’s ethical standards. EBC’s One of EBC’s priorities in FY15 was to address staff activities had a strong focus on addressing staff fears of reluctance to report misconduct and the fear of retalia- retaliation and reprisal, on sexual harassment, and on tion and reprisal. With the support and participation of the “Ethics at Work” learning series. EBC observed that President Kim, over 1,100 WBG managers joined a face- because of the decline in the number of staff participat- to-face conversation, the “Enabling Collaboration and ing in onboarding-related activities such as new staff Preventing Retaliation Workshop,” and nearly 700 staff orientation and the Code of Conduct e-learning—which took the e-learning “Preventing Retaliation at the World is mandatory for new staff—the total number of indi- Bank Group” that followed. The training was designed viduals reached by EBC in FY15 declined slightly over to raise awareness and train staff members on workplace FY14. The number of staff attending face-to-face train- norms and the importance of enforcing their rights, and ing, however, more than doubled in FY15, given EBC’s the avenues of assistance available to staff. deployment of the anti-retaliation training initiative and The “Enabling Collaboration and Preventing the ethics awareness training offered to all staff in the Retaliation Workshop” focused on the key role that locations where the managerial training was offered managers play in fostering a workplace in which staff (table 4). EBC trainers delivered regional workshops in are comfortable expressing dissenting views. EBC had Bangkok, Buenos Aires, Chennai, Dakar, Delhi, Dubai, the ambitious goal of reaching all headquarters-based Hong Kong, Istanbul, Jakarta, Johannesburg, Moscow, Managers and Supervisors between November and Nairobi, Panama City, Paris, Rabat, Sydney, Vienna, and December of 2014, and country-based managers start- Washington, D.C. ing in January 2015. EBC therefore trained a cohort TABLE 4: EBC OUTREACH AND TRAINING BY NUMBER OF PARTICIPANTS, FY14 AND FY15 Number of Participants Outreach and Training FY14 FY15 Onboarding/orientations (including staff, spouses, partners, G5s, and interns) 1,099 605 Outreach (open house, learning series*, etc.) 806 715 Joint activities with partners (INT, IJS, HR) 424 122 Face-to-face training on misconduct, other 1,084 1,460 Face-to-face training on anti-retaliation n.a. 1,112 Code of Conduct e-learning 2,069 748 “Preventing Retaliation” e-learning n.a. 675 Total 5,482 5,437 Note: INT = Integrity Vice Presidency; IJS = Internal Justice Services; HR = Human Resources; n.a. = not applicable. *Learning series numbers are estimates.  11 12 OFFICE OF ETHICS AND BUSINESS CONDUCT  FY15 ANNUAL REPORT of partners from Human Resources, the Office of the Field Office Misconduct Ombudsman, Internal Justice Services, Peer Review Training, FY15 Services, and seasoned WBG staff to co-deliver the workshop with an EBC staff member. Full deployment While a major focus of EBC in FY15 was the “Enabling began in November 2014, and EBC delivered 87 ses- Collaboration and Preventing Retaliation Workshop,” as sions to over 1,100 managers at headquarters and 17 part of its ongoing efforts to meet with staff members, regional locations. EBC staff also trained over 1,400 WBG staff based in The participants generated a substantial set of rec- 17 country offices to wide acclaim, often to standing- ommendations on how the WBG could better address room-only audiences. In particular, participants appreci- and mitigate the fear of reprisal: ated EBC’s use of interactive case studies and real-life • Demonstrating accountability and equality. Many examples to flesh out what the WBG considers to be participants believed that there is a need for the misconduct and unethical behavior. Many participants institution to communicate the fact that staff mem- suggested that EBC provide these types of trainings at bers, regardless of seniority, are held accountable least once a year to all staff, including managers, and to for their actions. allocate more time to cover a wider array of topics. • More effective managerial training. There is a need To make the best use of resources, EBC delivered for more effective training for both managers and these misconduct trainings during missions undertaken supervisors on so-called “soft” or people skills. to provide the “Enabling Collaboration and Preventing Managers should also have access to tools and Retaliation Workshop” to country office–based manag- techniques needed to handle challenging issues ers. Seizing on the opportunity that the anti-retaliation involving staff. trainings provided, EBC reached an additional 1,400 staff members in country offices it otherwise • Increased awareness of the WBG’s internal justice would have missed. mechanism. Knowledge of the IJS mechanism in EBC worked closely with management in each the WBG remains relatively low, and a number of country office visited to tailor the training to the specific misperceptions must be more effectively addressed. needs of their staff and to address the types of issues • Promoting constructive criticism. The perception confronting each office. EBC views training as a special exists among many staff that there is a “shoot the opportunity to learn more about the concerns of staff messenger” culture. Efforts must be made, starting in country offices. While conducting trainings in country with senior management, to change this perception. offices, EBC always makes an investigative team avail- • Addressing the structural impediments that contrib- able to meet with staff wishing to report misconduct or ute to fear and uncertainty. One example commonly discuss other areas of concern. cited is the WBG’s contract architecture, with many staff on contingent or short-term contracts. The majority of participants rated the workshop ETHICS AT WORK positively, especially country-based managers who sug- EBC continued its successful “Ethics-at-Work Learning gested it should have been longer than the 2.5 hours Series” which presents organizational ethics issues with allotted to it. One manager said, “This is the first time a focus on engaging staff on substantial and practical in my career here when I’ve had the opportunity to sit topics, with direct relevance to staff’s daily work and down and talk with other managers about these issues.” operations. In FY 15, the third year of presenting the Another said, “This is the first time I have ever received series, two successful sessions were held and featured training in handling these types of issues.” as Today articles: EBC shared these recommendations with senior management, and the underlying concerns remain on • Professor Barry Schwartz of Swarthmore College, on the agenda as a high-priority action area in FY16. “Pathology of Bureaucracy.” • Professor Eyal Winter of Hebrew University, on “Our Emotions are More Rational than We Think.” EBC’S OUTREACH PROGRAMS 13 Sexual Harassment EBC Newsletter Preventing and effectively addressing sexual harassment In FY15, significant progress was made on increasing concerns were another focus for EBC in FY15. During awareness and knowledge of a wide range of ethical the year, EBC developed and piloted a face-to-face issues in the WBG, as EBC launched its first newsletter workshop for managers aimed at boosting awareness in November 2014. The objective of the newsletter is to and skills in addressing sexual harassment. In addition, bring topical ethical issues to the attention of all World work began on an e-learning module for all staff on sex- Bank Group staff members. Although the first edition ual harassment. Deployment of both the e-learning and was circulated to staff in the country offices only and pos- the face-to-face manager workshop is planned for FY16. itively received, subsequent editions were circulated to Over the course of the past six years, EBC has inves- all staff members. The newsletter is published quarterly, tigated 19 allegations of sexual harassment and submit- with each edition discussing different misconduct topics, ted 11 reports to HRDVP. ranging from medical benefit fraud, travel fraud, sexual harassment, and misuse of WBG assets to the WBG’s policy on conflict of interest. Each edition also high- Brown Bag Learning lights and discusses recent trends in unethical conduct Opportunities reported to EBC. Since the publication of the first edition of the newsletter, there has been a significant increase in As part of its outreach program, EBC mainstreams les- the number of requests for advice and reports of unethi- sons learned in the course of investigations and HRDVP cal behavior received by EBC. In FY 16, EBC will continue disciplinary findings through training and other types to use the newsletter to educate and raise awareness of of outreach such as brown bag lunches to promote the unethical behavior within the World Bank Group and also reporting, detection, and prevention of staff miscon- disseminate information about its activities. duct. EBC works closely with its partners in the IJS, such as INT and the Staff Association, to maximize outreach opportunities. During this past year, EBC has communi- cated to over 500 staff in this manner in several brown bag lunches. EBC STAKEHOLDER ENGAGEMENTS Tax Noncompliance G5 Program Compliance E BC initiated a successful collaborative effort In conjunction with its new approach to cases of tax with HR, the Legal Vice Presidency Institutional noncompliance, EBC initiated a similar compliance- Administration, and the Tax Office, which resulted based approach to handling the failure of staff with G5 in the implementation of a compliance-based approach domestic employees to adhere to applicable U.S. fed- to handling the failure by staff to pay U.S. federal and eral, state, and local laws, as well as to the WBG’s Code state taxes. This new compliance-based approach has of Conduct provisions relating to the G5 program. allowed EBC to re-deploy its investigative resources to WBG staff members in the U.S. who hold a G4 visa other high-priority matters. Tax-related cases require may employ a domestic employee to work in their more time to review and process because of the neces- home as a nanny, housekeeper, or elder care provider, sary interface with government authorities. among other roles. The domestic employee enters and U.S. citizens working at the WBG are obliged to pay works in the U.S. under a G5 visa. The Code of Conduct their taxes to U.S. tax authorities under the Articles of mandates that staff members who employ G5 domestic Agreement. Since the salary of all other nationals work- employees meet certain standards when dealing with ing at the WBG is paid on a net-of-tax basis, the WBG these employees to ensure their fair treatment and makes U.S. staff members whole by paying them annual the consistency of their dealings with U.S. law and the tax allowances to meet their tax obligations. WBG Staff Rules. These standards include maintain- A small proportion of U.S. staff members fail to ing an employment contract between the parties at all pay their taxes when due or to use their tax allowances times, keeping adequate records of payments to the G5 appropriately. Historically, when the WBG received a for- employee, payment of their health care insurance, and mal notice of tax delinquency from the U.S. tax authori- attending the mandatory G5 orientation with their G5 ties, EBC initiated an investigative review. In prior years, employee. EBC spent a disproportionate amount of resources While EBC continues to investigate claims that a G4 investigating these types of cases. In FY10, EBC inves- staff member is either noncompliant with the applicable tigated 25 tax cases, and in FY15 EBC investigated one standards or is otherwise mistreating the G5 domestic tax case, for which a report was sent to HRDVP. employee, EBC has made a proactive effort with the Tax cases will now initially be treated as a compli- Human Resources Service Center to help WBG staff ance matter in that EBC will speak with staff members members achieve and maintain their compliance with when noncompliance is alleged and, where appropriate, the various standards and applicable laws. When G4 enter into a memorandum of understanding with staff staff members are either unable or unwilling to comply, by giving them a defined time period in which to resolve EBC initiates an investigation. Possible sanctions for their situation with the U.S. tax authorities. Typically, this abusing the G5 program have included suspension or effort results in an installment agreement, an offer of even revocation of G5 privileges. Just as with EBC’s compromise, or full payment to the Internal Revenue new approach to tax noncompliance cases, EBC has Service. In the event that a staff member does not com- found that its similar approach to G5 compliance cases ply, EBC will initiate an investigation. Significantly, this has actually increased staff members’ compliance while new approach has achieved increased compliance and a allowing EBC to be more efficient in how it handles better use of EBC’s investigative resources. these matters.  15 CONTACTING EBC Reporting Allegations Conflict of interest advice will be kept confidential between the COI advisory team and the staff member of Misconduct and may be shared with others who have a legitimate need to know. Information that has been shared with EBC’s COI REPORTING OBLIGATIONS advisory staff may be shared with EBC investigators if there is reason to believe that misconduct may have Staff are encouraged to report alleged staff misconduct occurred. Staff are encouraged to approach EBC early, either to their managers or to EBC; managers have an so that any COI concerns can be promptly addressed obligation to report such allegations to EBC. and effectively managed. Due process protections are afforded to all staff who contact EBC. DUE PROCESS All individuals involved in the investigative process— RETALIATION including those reporting alleged misconduct, wit- nesses, and subject staff members—are afforded due Retaliation or threat of retaliation by a staff member process by EBC. against any person who reports suspected misconduct, or who cooperates or provides information in connec- tion with an investigation, is prohibited. Retaliation or CONFIDENTIALITY threat of retaliation constitutes misconduct in and of Information about an investigation and the identity of itself and may be investigated as such by EBC. staff involved are disclosed only to individuals who have a legitimate need to know, consistent with Staff Rules. ANONYMOUS REPORTING Staff have the option of reporting misconduct anony- Seeking Conflict of interest mously. However, no finding of misconduct can be made Advice and Guidance based on anonymous allegations unless the allegation of misconduct is independently corroborated. Staff with questions relating to personal COIs (for example, questions on outside activities, gifts, post-WBG employment) or WBG business COIs are encouraged to write to the ethics helpline: ethics_helpline@worldbank.org.  17 FY 15 ANNUAL REPORT OFFICE OF ETHICS AND BUSINESS CONDUCT TEL: 202-473-0279  FAX: 202-522-3093 EMAIL: ethics_helpline@worldbank.org ETHICS HELPLINE: 1-800-261-7497 (24 hours 7 days a week) INTRANET: http://ethics.worldbank.org INTERNET: http://www. worldbank.org/ethics