96273 FY 14 ANNUAL REPORT 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 World Bank Group that reports directly to the president. Cover photograph: Manorama Rani, Office of Ethics and Business Conduct. FY 14 ANNUAL REPORT Photo: Eugenio Salazar CONTENTS ABBREVIATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv LETTER FROM THE VICE PRESIDENT AND CHIEF ETHICS OFFICER. . . . . . . . . . . . . . . . . . . . . v EXECUTIVE SUMMARY.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Addressing Conflicts of Interest Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Investigations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Six Areas of Focus. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Ethics Outreach, Training, and Staff Engagement.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Looking Ahead.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 ADDRESSING CONFLICT OF INTEREST RISKS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 WBG’s Declaration of Interest Programs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Staff Rule Updates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 INVESTIGATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Matters Handled by EBC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Overview of Outcomes.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Personal Tax Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 World Bank Group G5 Visa Program.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 CONTRIBUTING TO POSITIVE CULTURAL CHANGE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 LOOKING AHEAD.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 CONTACTING EBC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Reporting Allegations of Misconduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Seeking Conflict of Interest Advice and Guidance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14  iii iv OFFICE OF ETHICS AND BUSINESS CONDUCT  FY14 ANNUAL REPORT ABBREVIATIONS COI conflict of interest CY calendar year 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 System INT Integrity Vice Presidency LOV Living Our Values MOU memorandum of understanding MIGA Multilateral Investment Guarantee Agency OIC Outside Interests Committee SMT senior management team VP vice president WBG World Bank Group LETTER FROM THE VICE PRESIDENT AND CHIEF ETHICS OFFICER F iscal Year 2014 was a year of significant organizational change for the World Bank Group. It also was both a productive and an eventful year for the Office of Ethics and Business Conduct (EBC). Significant progress was made on a number of fronts. Playing a constructive role in the change effort has been extremely important, and EBC did so through participation in the Bank Group’s Leadership Values and Culture working group. Proposals from this group were strongly endorsed by the senior management team and are being implemented. Additionally, through EBC’s advisory work on conflicts of interest and its investigations, we identified and brought to the attention of the president six areas of ethics-related risks. They are: 1. Addressing the fear of reprisal among WBG staff, as seen in results from the WBG’s 2013 Employee Engagement Survey 2. Preventing and addressing sexual harassment 3. Eliminating abuse of G5 domestic workers employed by WBG staff members 4. Mitigating the risk of noncompliance by US staff members with their US tax obligations 5. Addressing complex situations that can arise when WBG partnerships, funded by trust funds, may be out of alignment with WBG staff rules 6. Clarifying the issues that can arise in the context of the differing ethics frameworks that apply to staff and WBG board officials. Not addressing any of these areas could carry high costs for the WBG, including significant rep- utational risk. In light of the president’s strong endorsement, EBC dedicated resources to these ini- tiatives, as described in this report. Of particular note, progress was made in implementing action steps to address staff members’ fears of reprisal. Steps included related communications and the delivery of a pilot of mandatory manager training, as well as the engagement of senior manage- ment in efforts to send the right tone from the top. On the conflict of interest risk management front, EBC’s administration of the two Declaration of Interests Programs was extremely efficient. More than 2200 staff members completed their sub- missions. Moreover, we achieved full compliance in record time, reflecting the implementation of a more filer-friendly approach. On the investigations side, EBC managed a high case load of complaints in FY14 and stream- lined internal processes, resulting in a significant reduction in turnaround time––from 62 days in FY13 to 52 days in FY14 for non-tax matters. Moreover, in 2014 the lessons learned from EBC’s investigations of a range of misconduct matters translated to substantive follow-up actions to address areas of ethical risks, as can be seen in the initiatives described above. Education and  v vi OFFICE OF ETHICS AND BUSINESS CONDUCT  FY14 ANNUAL REPORT outreach on misconduct and other topics were ongoing throughout the year, including a successful effort to foster ethics conversations with staff using humorous ethics videos. All told, Fiscal Year 2014 was a productive year. I deeply appreciate the efforts of the EBC staff members and our partners who enabled us to achieve these results. The year ahead certainly will bring its challenges as the organizational change process continues to unfold. We hope and expect that staff will turn to EBC with their concerns, and I believe we are well positioned to address them effectively. Additionally, EBC will focus on some of the subtle and informal cultural issues, such as fostering a “speak-up” culture, that are very much on the minds of staff members and have implica- tions for success in achieving the WBG’s future goals. Xian Zhu Vice President and Chief Ethics Office EXECUTIVE SUMMARY Addressing Conflict to the Office of the Vice President for Human Resources (HRDVP) for disciplinary action or a determination of of Interest Risk whether misconduct had occurred increased from 14 in World Bank Group staff members frequently reach out FY13 to 16 in FY14. to the Office of Ethics and Business Conduct (EBC) to seek advice and guidance on conflicts of interest. In FY14 EBC responded to 744 conflict of interest (COI) Six Areas of Focus queries. EBC responded within 2 calendar days to more EBC highlighted for senior management’s attention the than 70 percent of these queries. Less than 10 percent ethics and reputational risks associated with six areas required more than 1 week, reflecting more complex and recommended action items to mitigate these risks. personal and operational COI questions. These areas are: EBC administers the WBG’s two mandatory Declaration of Interests (DOI) Programs. They are 1. Addressing staff fears of reprisal for reporting designed to proactively identify possible conflicts of unethical conduct interest, to manage the associated risks, and to pro- 2. Preventing and addressing sexual harassment mote transparent behavior by staff members. For the 3. Reducing risks of abuse associated with the WBG’s first time, EBC was able to achieve full compliance G5 visa program with both the Staff Program (2250 filers) and the Senior 4. Strengthening the compliance mechanism for Management/Vice Presidents (SMT/VP) Program without US citizens regarding payment of their US tax the need to impose, or threaten to impose, fines. obligations 5. Addressing situations that can arise involving WBG Investigations partnerships 6. Clarifying the ethics frameworks and processes that EBC reviews allegations of staff misconduct such as apply when matters arise that involve staff members harassment, abuse of authority, fraud involving WBG and board officials. benefits, and staff noncompliance with personal legal obligations. In FY14 EBC handled 230 complaints. Of EBC’s proposals were endorsed by the president, these, 115 resulted in an initial review, and 36 resulted who approved mandatory manager training to address in a formal investigation. EBC opens a file for every fear of reprisal and sexual harassment in the workplace. complaint received, and matters that do not fall within Key elements of these two initiatives were put into place EBC’s mandate are referred promptly to other appro- in FY14, with deployment planned for FY15. priate units. For matters that fall within its jurisdiction, EBC conducts an initial review to determine whether the evidentiary basis is sufficient to proceed with an Ethics Outreach, Training, investigation. and Staff Engagement The top 3 categories of complaints, or two-thirds of the complaints closed during the fiscal year, related In 2014 EBC offered a spectrum of outreach, training, to harassment (28 percent), noncompliance with staff and communications aimed at fostering dialogues with rules (24 percent), and abuse of authority (16 percent). staff members on a range of workplace-ethics-related The number of substantiated cases submitted by EBC concerns. EBC licensed the use of a series of humorous  1 2 OFFICE OF ETHICS AND BUSINESS CONDUCT  FY14 ANNUAL REPORT short videos on ethics, which proved very effective in Looking Ahead opening conversations on topics ranging from conflicts of interest to retaliation and reprisal. EBC also con- Looking ahead, through increased internal outreach, tinued its popular “Ethics-at-Work Learning Series,” EBC seeks to engage directly with staff on ethics- offering two well-received programs during the year. relevant topics including sexual harassment and fear Globally, at the request of WBG internal client groups, of reprisal. Externally, EBC will reach out to exchange EBC also delivered a number of workshops for regional knowledge with ethics professionals in the private sector staff and key audiences such as staff who interact with and in other international organizations. local financial markets. ADDRESSING CONFLICT OF INTEREST RISKS E BC aims to provide timely and actionable advice such relationships to ensure that the associated conflict and guidance to address queries related to both of interest risks are addressed. personal and WBG operational conflict of interest An additional category in which EBC provides guid- (COI) matters. ance concerns situations in which a staff member is in In FY14 EBC received 744 requests for advice, down professional contact with close relatives or spouses (15 from 844 in FY13. In particular, requests concerning gifts, percent, or 109 queries, in FY14). These situations fre- entertainment, medals, and honors were significantly quently are referred to EBC, which identifies appropriate lower than in FY13 (table 1). risk mitigation measures. EBC also handles personal Slightly more than one-third of the requests for conflict of interest queries related to the receipt of gifts advice were related to outside activities that staff mem- or awards or to procurement activities; and specific con- bers wish to perform in addition to their WBG work. flict of interest issues such as speeches to be delivered These activities included teaching, lecturing, writing, by staff members outside the WBG. and contributing to nonprofit organizations. Most of Due in part to the reduction in queries, EBC’s these activities do not require authorization––provided response time continued to improve. More than two- they are permissible by law, are unconnected with the thirds of the queries were answered within two business WBG, and do not reflect negatively on the institution. days (figure 1). However, other activities do require authorization by the Outside Interests Committee (OIC), as described below. Approximately 20 percent of the advisory requests received by EBC in FY14 related to pre-/post-WBG- employment situations, in which staff members had or have professional dealings with either a former or a pro- spective future employer. EBC assists staff in managing FIGURE 1. COI QUERY RESPONSE TIME IN CALENDAR DAYS, FY13–FY14 (%) TABLE 1. CONFLICT OF INTEREST CONSULTATIONS 100 BY CATEGORY, FY12–FY14 90 80 Category FY12 FY13 FY14 70 Outside activities 261 286 265 60 Future or former employment 128 131 124 Vendor procurement 66 41 37 50 Operational 51 25 22 40 Close relatives/relationships 108 102 109 30 External service 59 41 38 20 Gifts, medals, honors 58 76 52 10 Personal financial interests 33 37 35 0 Public statements 40 41 39 FY13 FY14 Other 44 55 23 More than 7 days 3-5 days Total 848 835 744 6–7 days less than 2 days % change from prior fiscal year (5) 0.4 (11.8)  3 4 OFFICE OF ETHICS AND BUSINESS CONDUCT  FY14 ANNUAL REPORT TABLE 2. WBG DECLARATION OF INTERESTS (DOI) PROGRAMS SMT/VP Program The 40 most senior individuals in the organization, including the WBG president, must complete a declaration that is summarized and posted publicly on the internet. Staff Program Senior-level staff members (GH and above), and designated staff in other sensitive roles, such as staff in the Office of Ethics and Business Conduct, the Integrity Vice Presidency, and corporate procurement, are required to file annual declarations. Board Program An independent program for board officials is run by the Corporate Secretariat. WBG Declaration of Moreover, EBC modified the conflict of interest review process so that EBC staff directly handled matters in Interest Programs which possible COI were identified. As a result, pro- EBC manages two separate Declaration of Interests gram fees to the external consulting firm were reduced (DOI) programs: one for the senior management team by 15 percent, and the process was streamlined: 86 per- and vice presidents (SMT/VP Program) and a separate cent of filings were analyzed and closed by June 30––a Staff Program. historic high. Program participants complete a confidential DOI Due to the calendar year period used for the WBG’s that is reviewed by EBC and external consultants to DOI programs, the 2012 Program reviews were com- identify risks of possible conflicts of interest. Participants pleted during FY14. Seventy-four of the 2202 partici- must disclose any special treatment that they may pants in the 2012 Program, or 3.4 percent, had COI that have received from their personal or financial activi- required mitigation measures. Some individuals had ties, including gifts, medals, decorations, or honors, more than one conflict of interest. Of the 74 individuals, that could give rise to perceptions of divided loyalties. 34 were from IBRD/IDA (of 1473 total IBRD/IDA filers), 38 Participants also must declare their financial holdings from IFC (of 700 total IFC filers), and 2 from MIGA (of 20 above $10,000 per asset, real estate holdings, and out- total filers). Nine additional filers participated from the side positions that they––and their immediate family Global Environment Facility (GEF). members––may hold. These positions include profes- COI matters identified for the 2012 Program sional and quasi-professional activities such as board included: memberships in for-profit or nonprofit organizations. • 97 financial conflicts of interest • 35 outside interest issues. STAFF DOI PROGRAM In the majority of cases, the only necessary follow-up measure was disclosure to a senior manager. Divestment During the 2013 calendar year Declaration of Interests was required in only 4 cases. This very low total reflects Program, launched in FY14, 2250 staff members were a generally high level of awareness among filers of the required to file a declaration of interest. In prior years, necessity to take into account COI risk when making financial penalties (“fines”) had been imposed on late personal investment decisions. filers. Significantly, in the 2014 program, more than 90 percent of staff members filed by the May 5 dead- line. Instead of immediately imposing fines, as was WBG SENIOR MANAGEMENT TEAM AND done in past years, for the 2014 program, EBC adopted VICE PRESIDENTS DOI PROGRAM a change in approach. Prior to the deadline, EBC staff communicated directly and proactively with individu- The summaries of declarations filed by SMT/VP mem- als who had not complied and offered direct assis- bers during the 2012 program period were reviewed by tance if needed. In a small minority of cases, EBC staff an independent firm in FY14 and posted on the internet members requested the support of the filer’s senior prior to the 2013 WBG Annual Meetings. Declarations manager to bring the filer into compliance. The pro- for the 2013 year program, received in FY14, were gram achieved 100 percent compliance by June 20. posted publicly prior to the 2014 Annual Meetings. ADDRESSING CONFLICT OF INTEREST RISKS 5 OUTSIDE INTERESTS COMMITTEE they provide the necessary safeguards without creat- ing undue burdens on staff members. Staff Rule 3.02 To carry out certain outside activities in their personal requires staff members to divest from companies that capacities, staff members are required by WBG Staff have a relationship with the WBG, a broad require- Rules to seek prior approval by the Outside Interests ment that often resulted in divestitures and recusals Committee (OIC). EBC chairs the OIC, which includes in instances that posed low COI risk. EBC proposed a members from the Office of the Vice President of change to this rule that took effect on July 1, 2014. The Human Resources (HRDVP), Legal Vice Presidency, Staff change allows EBC to grant exceptions to this require- Association, and staff members at large. Membership ment unless: was updated in FY14, and new members received • The staff member’s professional decisions could an orientation. materially impact the value of the company In FY14 the OIC reviewed 20 petitions––more • The staff member could receive, through profes- than a 3-fold increase over FY13. Thirteen petitions sional contacts, information that would be confi- related to providing services for a for-profit endeavor; dential yet relevant for the staff member’s private 3 involved services to government bodies; and 2 peti- investment strategy tions concerned nominally paid activities in support of community and artistic initiatives. The remaining two • The staff member holds confidential information petitions concerned a candidacy for local public office learned through her/his WBG work that would be and unpaid service to a nonprofit that had a business valuable to the company if disclosed relationship with the WBG. In all, 17 petitions were • As part of his/her WBG work, the staff member approved; 3 were not approved. publishes market analysis and analyzes the company, among others. Staff Rule Updates The rule change also gives EBC more discretion in the choice of mitigating measures. As part of efforts to streamline operations, EBC peri- odically reviews relevant Staff Rules to ensure that INVESTIGATIONS E BC aims to expeditiously and thoroughly investigate B O X 1 G U I D I N G PR I N CI PL E S O F allegations of staff misconduct while respecting the EB C’ S I N V E S T I G AT I V E FU N C T I O N due process rights of all parties. (box 1) • Staff members are treated fairly and respectfully. Matters Handled by EBC • There is a presumption of innocence until the EBC reviews allegations of staff misconduct related Human Resources Vice President determines to workplace grievances such as harassment, sexual that misconduct has occurred. harassment, discrimination, hostile work environment, • A staff member who is the subject of an and abuse of authority. In addition, EBC handles alle- investigation has the right to respond to gations of fraud related to benefits or allowances; allegations raised against him or her. failure to meet personal legal obligations (such as tax • Investigations are handled with discretion and payments or court-ordered spousal or child support); need-to-know confidentiality. retaliation; and other violations of WBG rules, policies, • Investigations are conducted in a timely and Principles of Staff Employment. A detailed descrip- manner. tion of EBC’s investigative process can be found in the “Guide to EBC’s Investigative Process.” TABLE 3. OVERVIEW OF EBC’S CASELOAD, FY12–FY14 FY12 FY13 FY14 Number Percent Number Percent Number Percent Carried over from previous year 60 n.a. 34 n.a. 28 n.a. Total opened 250 n.a. 256 n.a. 251 n.a. Closed after assessment 102 38 83 32 79 34 Closed after initial review 114 41 136 52 115 50 Closed after investigation 34 12 28 11 20 9 Referred to HRDVP for disciplinary action a 26 9 14 5 16 7 Total closed 276 n.a. 261 n.a. 230 n.a. Carried forward to following year 34 n.a. 29 n.a. 49 n.a. a. Includes substantiated cases closed by options letter and memorandum of understanding. n.a. = not applicable. Overview of Outcomes appropriately. Approximately one-half of FY14 com- plaints were closed at the point of initial review because In FY14 EBC addressed 230 complaints. Approximately either the evidence was insufficient to proceed with a one-third were closed at the assessment stage (table full investigation or the allegations were unfounded. 3). Matters closed at this stage generally do not fall In FY14, in addition to 28 complaints carried forward within EBC’s mandate or are referred to another office from FY13, 251 new complaints were received. Of the within the WBG in which they would be handled more 279 complaints, 230 were closed during FY14, and  7 8 OFFICE OF ETHICS AND BUSINESS CONDUCT  FY14 ANNUAL REPORT TABLE 4. MATTERS CLOSED BY CATEGORY, FY12–FY14 FY12 FY13 FY14 Category Number Percent Number Percent Number Percent Personal legal obligationsa 78 28 36 14 24 10 Harassment b 50 18 48 19 66 28 Abuse of authority 32 12 43 17 36 16 Misuse of WBG assets or resources c 23 9 24 9 18 8 Benefit fraud, misrepresentation, or false 9 3 11 4 * * reporting Conflict of interest 9 3 1 — * * Data or information breach 7 2 4 1 * * Retaliationd 8 3 5 2 13 6 Employment and assignment issues or 4 1 5 2 * * management skills and behavior Unprofessional conduct 33 12 77 30 * * Noncompliance with Staff Rules * * * * 55 24 Discrimination * * * * 7 3 G5 Domestic * * * * 11 5 Other e 25 9 7 2 * * Total 278 100 261 100 230 100 Note: In FY14 EBC revised its classification system for cases to present more precise data on specific issue areas as well as to eliminate the “other” category that was used previously. Additionally, certain categories used in the past, such as “conflict of interest and fraud” (related to benefits, petty cash), were reclassified as “noncompliance with Staff Rules.” a. “Personal obligations” includes tax and nontax personal legal obligations and G4/G5 employee issues for FY12–13. Starting in FY14, G5 matters are classified separately. b. In FY12–13 “harassment” included harassment, sexual harassment, hostile work environment, discrimination, and interpersonal conflicts. Starting in FY14, discrimination is presented separately. c. “Misuse of assets or resources” includes misuse of assets and WBG resources and theft. d. “Retaliation” includes whistleblower retaliation under Staff Rule 8.02 as well as retaliation as described in Staff Rule 3.00. e. “Other” includes absence from duty, conviction for criminal actions, domestic abuse, and policy questions. In FY14 this category was eliminated. 49 were carried forward into FY15. EBC completed Below are examples of substantiated allegations 36 formal investigations in FY14, 16 of which resulted in of misconduct that were referred to HRDVP in FY14. In a finding of misconduct––a substantiation rate of each of these examples, HRDVP took disciplinary action. 44 percent. • A staff member sexually harassed a short-term The largest category (28 percent) of cases handled consultant. by EBC during FY14 was harassment (table 4). • A staff member falsified medical invoices and fraud- As a result of EBC’s investigations, 16 cases were ulently obtained medical insurance reimbursements. referred to HRDVP for a decision on misconduct and disciplinary action, and 2 cases resulted in memoranda • A staff member engaged in behavior that created a of understanding (MOUs). A MOU is a letter by which hostile work environment. a staff member enters into mutual agreement with the • A staff member sexually harassed an extended-term Bank Group. Of the 16 cases, HRDVP determined that consultant. misconduct did not occur in 1 case that alleged retalia- • A staff member misused his rental allowance. tion. Decisions are pending on 3 FY13 cases. The follow- • A staff member repeatedly viewed pornography on up actions taken by HRDVP for these years can be seen a WBG computer. in tables 5 and 6. I N V E S T I G AT I O N S  9 TABLE 5. SUBSTANTIATED CASES BY CATEGORY, ACTIONS TAKEN, AND SUBJECT’S GRADE, FY13 Number of Subject’s Cases Category of Misconduct Actions Taken Grade 1 Personal legal obligations: Memorandum of understanding GH Washington 6 Benefits fraud, No misconduct determination by HR (1) UC misrepresentation, false Mutual separation agreement and letter of intent withdrawn (1) STC reporting: Washington (3), Options letter (subject staff member resigned) (1) GH country office (3) Bar to rehire and restriction of access to Bank buildings (1) GG Bar to rehire(1) GF Decision pending (1) GA 1 Harassment: Washington Demotion and temporary conditional restriction on employment GG 1 Failure to perform duties: No finding of misconduct by HR GH Washington 4 Unprofessional conduct, Decision pending (2) ETC negligence: Washington UC (1), country office (3) Written censure (in file for one year) (1) GC Written censure (in file for three years) (1) GG 1 Misuse of Bank resources; Bar to rehire and restriction of access to Bank buildings GC medical fraud: country office (1) Note: ETC = extended-term consultant; STC = short-term consultant; UC = ungraded staff. TABLE 6. SUBSTANTIATED CASES BY CATEGORY, ACTIONS TAKEN, AND SUBJECT’S GRADE, FY14 Number Subject’s of cases Category of misconduct Actions taken grade 3 Misuse of Bank resources (benefits, travel, Bar to rehire and restriction of access to Bank buildings (1) GD and Bank assets): Washington (3) Payment of restitution and written censure (in file for 3 years) (1) GI Bar to rehire (1) GB 5 Noncompliance with Staff Rules: Bar to rehire and restriction of access to Bank buildings (2) GE, UA Washington (3), country office (2) Demotion and temporary conditional restriction on GE employment (1) Options letter (2) GA, GB 6 Harassment: Washington (5), country Written censure (in file for two years; and indefinitely) (3) GF, UC, GI office (1) Bar to rehire and restriction of access to Bank buildings (1) GF Termination, bar to rehire, and letter in file indefinitely (2) GE, GF 1 Retaliation: Washington No finding of misconduct by HR GH 1 Personal legal obligations: Washington Written censure (in file until obligation is fulfilled) GC Note: UA = ungraded staff; UC = ungraded staff. Personal Tax Obligations tax obligations on time, the monetary value of cases handled by EBC since FY10 for noncompliant individuals The World Bank Group pays a “tax allowance” to US is substantial, totaling approximately $3 million in taxes nationals employed by it for their federal and state owed. To address institutional vulnerabilities in the area taxes. The purpose of the tax allowance is to place of tax compliance, in FY14 EBC completed a bench- US staff members on par with non-US staff members marking exercise across similar organizations, includ- whose salaries are nontaxable in the US. US nation- ing the United Nations and the International Monetary als are personally responsible for complying with their Fund. These organizations handle the issue of tax com- tax obligations. While 98 percent of US staff pay their pliance differently from the WBG. 10 OFFICE OF ETHICS AND BUSINESS CONDUCT  FY14 ANNUAL REPORT In FY14, in partnership with other internal stakehold- TURNAROUND TIME ers, EBC put forward a series of recommendations to senior management to mitigate institutional risks. These EBC has implemented service standards and strives to recommendations are: complete its investigations within three months (see “Guide to EBC’s Investigative Process”). In FY14 the 1. To re-evaluate onboarding and tax training sessions average processing time for case closure, excluding to focus less on details and to emphasize the obliga- tax matters, was 52 days, a reduction from 62 days in tions and responsibilities of staff. FY13. The processing time for tax matters also dropped 2. To require that all individuals who receive a tax significantly from 103 days in FY13 to 76 days in FY14. allowance upload in a timely manner proof that they Overall, EBC’s case processing time was well within the have paid the tax authorities. 6-month maximum recommended by the 2007 Volcker 3. To shift away from misconduct investigations to a Panel Review of the Integrity Vice Presidency (INT) for compliance approach to tax cases. If it is established handling workplace conflicts. that a staff member has not used the tax allowance for its intended purpose, EBC first will try to bring the staff member into compliance by entering into a memorandum of understanding with the staff member, who then needs to cooperate actively with the tax authorities. EBC’s work in this area continues in FY15, in collabo- ration with other WBG units. World Bank Group G5 Visa Program The WBG’s G5 domestic employee program allows staff members holding G4 visas to hire employees to work in their homes as nannies and elder care providers. The domestic employees enter and work in the US on G5 visas. Allegations against G4 staff members of non- compliance with the G4/G5 Code of Conduct, as well as unfair treatment of G5 employees, may expose staff members to criminal liability and can create significant reputational risk for the WBG. In FY14 EBC recommended a series of measures to help address these risks and improve the G5 program. Some of these measures, such as outsourcing oversight of the G5 program to an external vendor, are being implemented by HR. Additionally, EBC produced a new user-friendly brochure on G4/G5 obligations, which is distributed at both G5 orientations and spouse/partner orientations. CONTRIBUTING TO POSITIVE CULTURAL CHANGE E BC engages in outreach, communications, and address fear of reprisal, which had surfaced in the 2013 training activities to foster awareness of the WBG’s Employee Engagement Survey; or to make staff aware expectations for professional conduct and to of their ethical obligations as well as EBC’s role follow- address areas of ethics-related risks. ing an investigation. EBC also designed customized training for the General Services Department facilities, procurement, and Africa resource management staff. OVERVIEW OF ACTIVITIES These interactive offerings were rated highly by staff, based on post-session survey evaluations. EBC’s activities and communication products focus largely on addressing conflict of interest risks and areas of misconduct. In FY14 EBC placed particular emphasis ADDRESSING FEAR OF RETALIATION AND on risks associated with staff fear of reprisal and sexual REPRISAL harassment (detailed below). Starting in FY14, EBC partnered with the Integrity Vice Presidency (INT) to One of the most troubling results from the WBG’s 2013 co-present a successful series of quarterly brown-bag Employee Engagement Survey was the finding that lunch sessions, as well as globally accessible webinars, many staff would not come forward to report unethical focused on helping staff to better understand the behavior for fear of reprisal. An additional reason that WBG’s investigative processes. individuals do not come forward to report perceived Also in FY14, EBC delivered face-to-face workshops wrongdoing––also evident in the findings from other or presentations to over 1000 staff, including more than WBG surveys in recent years––is that many staff do not 400 in South Asia. These offerings were customized to trust the system or believe that there are consequences address the ethics-related pressures experienced by for wrongdoing. participants. In particular, EBC’s country office outreach To substantively address this concern, in FY14 EBC resulted in the generation of useful insights and bol- recommended a series of measures to the Office of the stered country office staff awareness of the services of President. These recommendations were to implement both EBC and other offices within the Internal Justice mandatory training for managers to promote a retali- System (IJS). ation-free workplace, and specific suggestions on set- Training was offered based on client requests as ting the appropriate “tone from the top” with respect well as from EBC’s strategic efforts to reach key audi- to reprisal behaviors. EBC’s recommendations were ences, such as managers. For example, a number of endorsed by the president, and a pilot of the manager units requested that EBC conduct ethics sessions to training occurred in late FY14, with deployment planned for FY15. TABLE 7. EBC OUTREACH AND TRAINING, FY14 No. PREVENTING AND ADDRESSING Type Participants SEXUAL HARASSMENT Onboarding/orientations (incl. staff, spouses/ 1099 partners, G5s, interns) Sexual harassment poses high reputational risk, and the Code of Conduct e-learning 2069 experience of EBC and other IJS offices suggests that Outreach (open house, learning series, 806 the problem is under-reported in the WBG. Based on the movie series) cases that have been brought forward in recent years, Joint activities with partners (INT, IJS, HR) 424 EBC recommended to senior management that the Bank Face-to-face training 1084 Group implement (1) a WBG-wide awareness campaign Total 5482 about sexual harassment, and (2) mandatory face-to-face  11 12 OFFICE OF ETHICS AND BUSINESS CONDUCT  FY14 ANNUAL REPORT training for managers on preventing and addressing X 3 “E T H I C S - AT- WO R K” B O it in the workplace. The WBG last required managers L E A R N I N G S ER I E S to attend sexual harassment-related training in 2005. Deployment of the new training is planned for FY15. EBC continued its popular “Ethics-at-Work Learning Series” to raise awareness of business ethics among WBG staff members for a second ETHICS MATTERS INVOLVING STAFF year. Two well-attended sessions were featured in MEMBERS AND BOARD OFFICIALS FY14: Separate ethics frameworks apply to WBG staff mem- • “The Righteous Mind: An Overview of bers and board officials. EBC’s mandate concerns staff Moral Psychology and Its Influence on Policy conduct matters. However, issues periodically arise Making,” presented by Jonathan Haidt, when WBG staff members and board officials work in Professor, New York University close proximity. In FY15 EBC will be working with the • “Uncovering the Culture of the Secret Corporate Secretariat to address these sensitive mat- Leaders: The Quiets, the Introverts, and ters. Initial collaboration took the form of a joint EBC/ the Cooperators in Institutions,” presented Corporate Secretariat presentation in March 2014, the by Joseph Badaracco, Professor, Harvard “Onboarding Program for New Board Officials and Staff Business School. on Ethics.” The presentation was well received by par- ticipants, and future sessions are planned for FY15. WBG. EBC is engaged with internal partners in a review ETHICS MATTERS INVOLVING WBG PARTNERSHIPS to address the potential conflicts that can arise. Cooperation with WBG donors and partners takes many forms, ranging from the direct involvement of staff members from different countries, to the establish- COMMUNITY OF PRACTICE AMONG ment of common joint ventures. In all cases, WBG staff WASHINGTON MULTILATERALS members continue to be bound by WBG ethics-related rules and expectations, and they also may be subject to In FY14 EBC established a local online community the specific rules contained in the joint-venture or coop- of practice with the ethics offices of the International eration agreement. Similarly, staff who are seconded Monetary Fund, the Inter-American Development by other institutions to work on cooperation projects Bank, and the Pan-American Health Organization. on the WBG premises are subject to both the code of The objective of this community of practice is to facili- conduct of their administration of origin, and that of the tate the exchange of knowledge among these three Washington-based international organizations concern- ing the functions of the ethics office and to facilitate B O X 2 N E W I N F Y14: “E T H I C S benchmarking. The local community of practice met AT T H E M OV I E S” twice during FY14. In FY15 EBC agreed to expand the online community to include the additional approxi- In 2014 EBC licensed use of a series of short mately 20 international organizations that comprise the videos on ethics that use humor to illustrate a membership of the United Nations’ Ethics Network of broad range of workplace issues. After piloting Multilateral Organizations (ENMO). the videos with representative groups of WBG staff in Washington and country offices, EBC determined that, notwithstanding differences in culture and individual senses of humor, the videos could be an effective tool for opening serious discussions in an engaging and somewhat lighthearted manner. Given the success of this approach, EBC is exploring the development of a series of WBG-specific videos for use in future outreach and training. LOOKING AHEAD F Y15 promises to be a very active year. In addition to organizations to broaden exchanges of knowledge, EBC’s advisory, investigatory, and training functions, experience, and best practices. the Office will be engaging intensively with staff and This list is not exhaustive. Efforts will continue collaborating with institutional partners to foster a dia- on other fronts, as EBC streamlines its processes to logue on the subtle issues that contribute to our culture more efficiently investigate allegations, implement con- and have broader implications for success of the WBG flict-of-interest risk management solutions, and in achieving its goals. Upcoming initiatives include: provide advice and guidance to address ethics con- • Deployment of mandatory training for all WBG man- cerns. Effectively reaching country office staff with timely agers on (1) creating a nonretaliatory workplace in and relevant information on ethics matters also will which staff feel comfortable voicing differences, and remain a high priority in the year ahead. Finally, EBC (2) preventing and addressing sexual harassment seeks to explore ways of more deeply integrating ethics • Development and deployment of e-learning mod- in WBG operations and contributing more directly to ules accessible to all staff on the aforementioned the WBG’s mission. two topics • Launch of a new and improved user-friendly website • Expanding the online local ethics community of practice from 4 members to 24 multilateral  13 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 REPORTING OBLIGATIONS need to know. Information that has been shared with EBC’s COI Staff are encouraged to report alleged staff misconduct advisory staff may be shared with EBC investigators if either to their managers or to EBC; managers have an there is reason to believe that misconduct may have obligation to report such allegations to EBC. occurred. Staff are encouraged to approach EBC early, so that any COI concerns can be addressed promptly and managed effectively. DUE PROCESS Due process protections are afforded to all staff who contact EBC. All individuals involved in the investigative process— including those reporting alleged misconduct, witnesses, and subject staff members—are afforded due process by RETALIATION EBC (see “Guide to EBC’s Investigative Process”). Retaliation or threat of retaliation by a staff member against any person who reports suspected misconduct, CONFIDENTIALITY or who cooperates or provides information in connec- tion with an investigation, is prohibited. Retaliation or Information about an investigation and the identity of threat of retaliation constitutes misconduct in itself and staff involved are disclosed only to individuals who have may be investigated as such by EBC. a legitimate need to know, consistent with Staff Rules. ANONYMOUS REPORTING Seeking Conflict of Interest Advice and Guidance Staff have the option of reporting misconduct anony- mously. However, no finding of misconduct can be made Staff with questions relating to personal COIs (for exam- based on anonymous allegations unless the allegation ple, questions on outside activities, gifts, post-WBG of misconduct is independently corroborated. employment) or Bank business COIs are encouraged to write to the ethics helpline: ethics_helpline@worldbank.org. 14 FY 14 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