ANNUAL REPORTFY 15

OFFICE OF ETHICS AND BUSINESS CONDUCT

TEL: 202-473-0279 FAX: 202-522-3093EMAIL: ethics_helpline@worldbank.org

ETHICS HELPLINE: 1-800-261-7497(24 hours 7 days a week)

INTRANET: http://ethics.worldbank.orgINTERNET: http://www. worldbank.org/ethics independence, impartiality and integrity

ANNUAL REPORTFY 15

Office of Ethics & Business Conduct

OFFICE OF ETHICS AND BUSINESS CONDUCT

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.

ANNUAL REPORTFY 15

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Photo: Joseph Grant Ellis, Jr.

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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

iv O F F I C E O F E T H I C S A N D B U S I N E S S C O N D U C T F Y 1 5 A N N U A L R E P O R T

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

In 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.

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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 DiaganaVice President and Chief Ethics Officer

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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 (%)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY13 FY14 FY15

Less than 2 days 3–5 days 6–7 days More than 7 days

ADDRESSING CONFLICT OF INTEREST RISKS

EBC provides timely and actionable advice and guid-ance to address queries related to both personal and WBG operational conflict of interest matters. In FY15, EBC received 830 requests for advice, an

11.6 percent increase over FY14 and a return to the levels seen in previous years. There were significant

increases in requests relating to vendor procurement and external service, while queries on personal financial interests declined relative to FY14 (table 1). Despite the increased volume of queries, EBC’s response time improved significantly. Nine out of ten advisory queries received responses within two calendar days (figure 1).

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EBC’s statistics on advisory requests provides key demographic information:

• Seventy-two percent of queries came from staff at the World Bank and the International Development Association, 23 percent came from the International Finance Corporation, and the remainder was spread across other Bank Group institutions (figure 2).

• Nearly half of EBC’s advisory requests (49 percent) were from grade GE-GG–level staff, one quarter were from GH and above, and the remainder from other groups.

• Sixty-five percent of EBC’s queries came from Washington, D.C.-based staff, with the remainder from country offices.

Consistent with years past, more than a third of EBC’s advisory requests were related to outside activi-ties that staff members wish to perform in addition to their WBG work. Activities such as teaching, lecturing, writing, and contributing to nonprofit organizations generally do not require authorization, provided that they are permissible by law, are unconnected with the WBG, and do not negatively reflect on the institution. However, other activities require authorization by the Outside Interests Committee (see below).

The second-largest category of advisory queries in FY15 was concerned close relatives of staff members, including spouses and partners. EBC received 137 advisory requests of this nature, generally involving

situations where the actions or decisions of the WBG could be influenced by a staff member’s family relation-ship, or be perceived as capable of such influence. EBC assists with the identification of appropriate risk mitiga-tion measures.

WBG’s Declaration of Interests Programs

EBC oversees the WBG’s two Declaration of Interest (DOI) programs, which are designed to mitigate conflict of interest risks. The Senior Management Team and Vice Presidents Program (SMT/VP Program) requires the 40 most senior individuals in the organization, including the WBG President, to complete a declaration that is sum-marized and publicly posted on the Internet.

The separate Staff DOI Program requires manager-level staff members, as well as designated staff in other 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 Secretariat.)

THE WBG SENIOR MANAGEMENT TEAM 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-ance on conflicts of interest concerns. Like the Staff DOI Program, the SMT/VP declaration form was simplified in FY15, facilitating the review process. Declarations for the 2014 year program were received, reviewed, and posted to the Intranet prior to the close of FY15, approximately four months earlier than in past years.

THE STAFF DOI PROGRAM

EBC introduced a number of changes to the 2015 Staff Program that improved and expedited the process for filers. These included:

• Offering a “no changes certification” option. Filers who had no changes to either their job description or to the information disclosed in their 2014 DOI could click a “no changes certification” and quickly complete the process.

FIGURE 2: CONFLICT OF INTEREST CONSULTATIONS BY INSTITUTION, FY15

IBRD, 601

IFC, 189

OTHER, 25MIGA, 12

GEF, 4

Note: IBRD = International Bank for Reconstruction and Development and International Development Association; IFC = International Finance Corporation; MIGA = Multilateral Investment Guarantee Agency; GEF = Global Environment Facility.

A D D R E S S I N G C O N F L I C T O F I N T E R E S T R I S K S 3

• Changes to real estate reporting requirements. Filers need only disclose real estate that is either located in a country where the WBG is financing projects providing advisory services, rented, or occupied at no cost by another WBG staff member (other than one’s spouse).

• An alternative procedure for filers with lengthy declarations. Individuals with more than 30 assets to declare were provided personal assistance from an EBC advisory team member to facilitate the completion of their declaration.

In addition to these improvements to the filer expe-rience, in FY15 EBC reengineered and streamlined the overall DOI program administration and review process. A significant portion of the more complex conflict of interest analysis is now undertaken by EBC staff directly rather than by an outside contractor. This change alone significantly reduced consultancy costs for administering both programs.

During the 2014 calendar year program, which was launched and closed in FY15, 2,255 staff members were required to file a declaration. Similar to the 2013 pro-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 2014 Staff Program declarations were reviewed in FY15, compared with 86 percent in FY13 for the 2013 program. As the deadline approached, EBC staff reached out pro-actively to individuals who had not yet filed and offered direct assistance. Only a small minority of cases required EBC to request the support of the filer’s senior manager to bring the individual into compliance.

Of 2,247 declarations received for the staff program, 6 percent or 141 cases were referred by the external

contractor to EBC for further review (figure 3). This is consistent with the proportion of filings requiring review in other organizations with DOI programs. In many of these cases, more information was needed from the filer. Upon completion of its review of additional infor-mation, EBC determined that no further action was required in 109 of the referred DOIs. Some declarations required further research on the items declared by fil-ers in light of the staff member’s roles and responsibili-ties. In 24 referred cases, EBC provided guidance to the staff members, such as directing them to disclose a particular asset to their manager, recommending that they avoid routine professional contact with a spouse, or recommending that they refrain from working on certain projects or deals. Five filers were notified that an activity they had declared required approval from the Outside Interests Committee, such as serving on a for-profit company’s board of directors. In three cases, the finan-cial holding of the staff member was deemed to pose a COI risk that needed to be managed. For two of these cases, EBC recommended that the staff members freeze their position on the asset, and in the third case EBC recommended that the staff member divest the holding.

Outside Interests Committee

WBG Staff Rules require that staff members seek the prior approval of the Outside Interests Committee (OIC) before carrying out certain outside activities in their personal capacity. EBC chairs the OIC, which includes representatives from the Office of the Vice President of Human Resources (HRDVP), the Legal Department, the Staff Association and from the staff at large.

FIGURE 3: FOLLOW-UP ACTIONS FROM THE 2014 STAFF DOI PROGRAM

Total DOI Filed

Referred to EBC for further review

2,247

141

109

24

35

Guidance provided

Reviewed by EBC and consideredno further action necessary

Freeze / divest

Directed to obtain OIC approval

Note: DOI = Declaration of Interest; OIC = Outside Interests Committee.

In FY15, the OIC reviewed 11 petitions, which is a significant decrease from FY14. Nine petitions were approved; they concerned activities related to family businesses, candidacy for political office, community

support, board directorships of nonprofit organizations, and work for a for-profit sports league. The two petitions that were denied involved staff member requests for board directorships.

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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

EBC INVESTIGATIONS: FY15 OUTCOMES

EBC reviews allegations of staff misconduct including workplace-related grievances, travel and benefits fraud, and staff noncompliance with personal legal

obligations. In FY15, EBC received 297 enquiries and complaints related to Staff Rule 3.00, an 18 percent increase over FY14 (Table 2).

Upon receipt of a complaint, EBC follows a consis-tent three-stage process: intake and assessment, initial review, and investigation.

INTAKE AND ASSESSMENt

EBC receives enquiries and complaints from all Bank Group staff members irrespective of their location. Of the 297 enquiries and complaints received in FY15, 70 percent emanated from staff in headquarters and 30 percent from country offices.

Upon receiving an enquiry or complaint, EBC assesses the matter to evaluate whether the behavior as alleged would constitute misconduct under the Staff Rules and would be suitable for investigation or more appropriately resolved by a less formal resource within the Internal Justice Services (IJS). A tenet of the Internal Justice Services is to try to resolve matters at the lowest level. EBC’s data show that a number of the enquiries received, such as disputed managerial decisions and interpersonal conflicts, either fall outside EBC’s mandate or may be more appropriately addressed by another

internal justice service. In FY15, 22 enquiries were referred to other parts of the IJS.

In some instances, staff members seek guidance from EBC on how to manage situations confronting them in the workplace. In FY15, 16 complaints were simply noted in EBC’s case files for its records only, generally reflecting a staff member’s desire to discuss a workplace situation without pursuing further action at 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.

INITIAL REVIEW

When a complaint progresses to initial review, EBC assesses the allegation to determine whether there are sufficient grounds to initiate an investigation. The initial review typically involves interviews with witnesses and a review of documents. The initial review is carried out without the involvement of the staff member who is the subject of the allegation. If after an initial review, EBC determines that the allegation is either unfounded or unsubstantiated, or that the evidence collected does not otherwise justify an investigation, the case will be closed. The reporter of the allegation is notified of such a closure. A case closing memorandum is prepared for EBC’s records. An alternative outcome of an initial

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review is that EBC assists the parties concerned in reaching a resolution of their differences.

In FY15, 121 allegations were carefully reviewed and closed after the initial review process. A total of 289 staff interviews were conducted in connection with these allegations, in addition to extensive review and analysis of other evidence.

INVESTIGATION OF CASES

At the conclusion of an initial review, if EBC determines that there is sufficient basis to the complaint, the matter will proceed to investigation. An investigation enables EBC to either establish enough evidence of possible misconduct, determine that there is insufficient evidence to conclude that the allegation is true or to refute the allegation and exonerate the staff member. EBC’s role as impartial fact finder entails reviewing any relevant information including documents, witness tes-timonies, and the response from the subject of the alle-gation. If EBC finds sufficient evidence to substantiate an allegation of misconduct, EBC provides a report of the investigation to HRDVP for a determination of misconduct and imposition of sanctions. If the allegation is unsubstantiated, the matter is closed.

In some instances, EBC’s review finds that although the allegation cannot be substantiated, the concern could result in a serious workplace issue if not properly addressed. In these cases, EBC will provide guidance to staff members for addressing these concerns. In other cases, EBC will involve HR business partners and manage-ment at various levels to facilitate a resolution of the issue.

In FY15, EBC investigated 45 cases of alleged mis-conduct. Of those cases, 29 resulted in the submission of investigative reports to HRDVP for a disciplinary deci-sion. This reflects a 70 percent increase from FY14, when 16 cases were referred to HRDVP for a decision. A total of 102 staff interviews were conducted in the course of these 29 investigations in addition to extensive review and analysis of other evidence. In 17 of the 46 cases investigated, EBC did not find sufficient evidence to substantiate the alleged misconduct and consequently closed the cases. During the course of investigating these 17 unsubstantiated cases, a total of 166 staff inter-views were conducted in addition to extensive review and analysis of other evidence.

Of the 29 reports submitted to HRDVP in FY15, HRDVP determined that misconduct had occurred in 16 cases and imposed disciplinary sanctions. Examples of these substantiated allegations appear below. In

10 cases, HRDVP exonerated the subject staff, conclud-ing either that no misconduct had occurred or that there was insufficient evidence, an equally important outcome for both the Bank and its staff. Decisions are pending with the HRDVP on the remaining three FY15 cases. The determinations made by HRDVP for cases submitted in FY15 is set forth in table 3. Figure 4 shows the type of cases investigated.

FY15 HRDVP DISCIPLINARY DECISIONS

In FY15, the HRDVP issued several disciplinary decisions ranging from letters of censure, terminations, permanent bars from being rehired, to restrictions of access to WBG facilities for engaging in misconduct based on substan-tiated cases. A staff member has the right to appeal HRDVP’s disciplinary decision to the tribunal, the judg-ments of which are binding on the World Bank Group. Some of the substantiated allegations of misconduct with the disciplinary actions are described below;

• A staff member abused his authority, misrepresented facts, and misused Bank Group resources by procur-ing a customs duty exemption for an imported shipping container bearing his name but containing goods belonging to a third party (unaffiliated with the WBG). His employment was terminated, his access to WBG premises was restricted, and a written cen-sure was placed on his personnel record indefinitely.

• A staff member surreptitiously placed his phone under the skirt of a female short-term consultant and made inappropriate video recordings of her. His employment was terminated. He was also made ineligible for future employment, his access to WBG premises was restricted, and a written censure was placed in his personnel record indefinitely.

• A staff member was found to have bullied three short-term consultants who were her subordinates. She was made ineligible for promotion for a year, and a written censure was placed on her personnel record for a year.

• A staff member asked a security officer to give her relative access to the office unaccompanied outside of business hours. The relative worked on a WBG computer using the staff member’s password. The staff member was sanctioned with a letter of reprimand, which will remain in her personnel record for the duration of her term contract.

• A staff member submitted a fraudulent document 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 of Cases Category of Misconduct/Location HRDVP Decision

Subject’s Grade

2 Misuse of bank resources (benefits, travel & bank assets): Washington, D.C. (1), Country Office (1)

No misconduct found

Termination, bar to rehire, restriction of access to Bank buildings and written censure (in file indefinitely)

GC

GI

10 Noncompliance with Staff Rules (theft, leaks of confidential information, conflict of interest): Washington, D.C. (2), Country Office (8)

Termination, bar to rehire, restriction of access to Bank buildings and written censure (in file indefinitely)

Demotion to GG, Ineligibility for promotion for three years, 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)

No misconduct found (2)

Memorandum of understanding

Termination, bar to rehire, restriction of access to Bank buildings, and written censure (in file indefinitely)

Demotion to GF, Ineligibility for promotion for three years, reduction in salary by 5%, and written censure (In file for three years)

Written censure (in file through duration of term contract, May 2015)

GE

GH

GH; GB

UA; GH

GI

GD

GG; GG

GE

8 Harassment (sexual harassment, sexual orientation & hostile work environment): Washington, D.C. (7), Country Office (1)

Decision pending (2)

Termination, bar to rehire, restriction of access to Bank building, and written censure (in file indefinitely)

Ineligibility for promotion for three years and written censure (in file for three years)

No misconduct found (3)

Ineligibility for promotion for a period not to exceed FY16 and written censure in file for one year

GG; GK

GF

GE

GE; GG; GG

GG

2 Retaliation (use of IJS system and whistle-blowing): Washington, D.C. (2)

No misconduct found (2) GI; GH

3 Personal legal obligation (failure to pay child/spousal/divorce support, US taxes & personal loans): Washington, D.C. (2), Country Office (1)

Written censure (until proof of compliance from IRS), ineligibility for salary review Increase for 2015, and ineligibility for promotion for two years

Bar to rehire (pending proof of compliance)

Decision pending

GG

UC

GC

1 Abuse of Authority: Country Office No misconduct found (1) GB

2 G5 Domestic (G5 domestic issues): Washington, D.C.

Written censure (in file for one year) and removal of G5 privilege for one year

Written censure (in file for three years) and removal of G5 privilege indefinitely

GH

GE

1 Unprofessional conduct/negligence: Washington, D.C.

No misconduct found (1) GG

Note: G = grade; UA = ungraded staff.

employment came to an end before the investiga-tion was concluded. She was made ineligible for future employment with the WBG, and a written censure was placed in her personnel record indefinitely.

• A staff member who repeatedly failed to take her G5 domestic employee to the G5 orientation perma-nently lost the privilege of employing a G5 domestic employee. A written censure was also placed in the staff member’s personnel record for one year.

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Below are summaries of some of the cases in which HRDVP made no finding of misconduct:

1. A staff member alleged that a colleague yelled “burn in hell” at him, scolded him for bringing a case to EBC, and disclosed a confidential Peer Review Services report to a nonparty. HRDVP found that the staff member’s actions did not amount to misconduct even though the staff member’s behavior was inappropriate and unprofessional.

2. EBC submitted a report to HRDVP concerning an allegation that a staff member barged into another staff member’s office during a meeting and shouted and pointed his finger at him. The staff member admitted engaging in the conduct and apologized. The HRDVP held that there was no misconduct but said that the staff member’s behavior raised serious concerns.

3. A staff member allegedly participated in an interview with the media without prior authori-zation, and this interview was later published. The HRDVP found that the staff member’s undisputed behavior raised serious concerns but, after reviewing the surrounding circum-stances, concluded that the staff member had not engaged in misconduct.

TURNAROUND TIME

EBC has implemented service standards and strives to complete its investigations within six months of receiv-ing a complaint. In FY 15, EBC’s average processing time for closure of misconduct cases was 131 days. In FY 14 and 13, the average processing times for case closure was 64 and 83 days respectively. These processing times are well within the 6 month maximum recommended by the Volcker Panel.

EBC investigators achieved these timelines despite their extremely challenging schedule resulting from the deployment of the face-to-face anti-retaliation training. In FY15, EBC staff delivered 87 sessions of the three-hour anti-retaliation training to over 1,100 managers in both headquarters and country offices. Investigators cumulatively spent 270 days in country offices reaching out to 378 managers and over 1,400 staff members in numerous anti-retaliation and misconduct trainings. In FY15, EBC’s investigations team comprised four full-time investigators, one analyst, one senior program assistant, one program assistant, two extended-term consultants, two short-term consultants, one extended-term tempo-rary, and one short-term temporary.

FIGURE 4: 46 INVESTIGATIONS CASES, FY15

Non-compliancewith Staff Rules

15

Harrassment15

Misuse ofBank Resources

6

GS Domestic2

Retaliation2Abuse of

authority3

Personal legalobligation

3

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 BANK GROUP’S ADMINISTRATIVE TRIBUNAL ON EBC CASES

In FY15, the World Bank Administrative Tribunal reiter-ated the importance of EBC’s mandate and confirmed EBC’s application of Staff Rules in several decisions. The decisions concerned applicants who challenged EBC’s investigative procedure and findings and also HRDVP’s findings that they had committed misconduct in viola-tion of Staff Rule 3.00. The tribunal also confirmed that EBC investigators followed due process in instances in which the applicants had challenged EBC’s investigative process.

In CT v. IBRD (Decision 512), the applicant (a level GF staff member), using her Bank computer, exchanged emails containing ethnic slurs and racial epithets about her manager with another colleague. The emails were unintentionally transmitted to the applicant’s manager. Challenging HRDVP’s finding of misconduct, she con-tended that EBC denied her due process rights by fail-ing to interview her character witnesses. The tribunal validated EBC’s findings and held that EBC did not violate her due process rights by failing to interview her character witnesses as her character was not at issue on the question of whether she committed the alleged mis-conduct. The tribunal further clarified that there was no provision in Staff Rules that required EBC to interview character witnesses.

In CR v. IBRD (Decision 511), the applicant was a senior adviser (level GI) involved in a sexual relationship with a subordinate, a female short-term consultant. After its investigation, EBC did not find sufficient evidence to substantiate the allegations of sexual harassment or retaliation. However, EBC found sufficient evidence of a failure to resolve the conflict of interest that arose as a result of the sexual relationship. The applicant (who resigned in the course of the investigation) then challenged HRDVP’s finding of misconduct and the sanctions imposed on him. He argued that certain factual findings by EBC were mistaken and that EBC and HRDVP tried to amend the Staff Rules through the Code of Conduct by wrongly holding him to a standard

contained in the Code of Conduct, thereby violating his due process rights. He also argued that the Staff Rules did not impose any obligation on a supervisor to disclose the existence of a sexual relationship unless the supervisor deemed such disclosure necessary in order to resolve a conflict of interest. The tribunal held that EBC did not violate the applicant’s due process rights by applying the Code of Conduct and Staff Rules. It found that, as a senior staff member, the applicant had an obligation to comply with the WBG’s rules. The tribunal further found that a conflict of interest arose automati-cally when the manager became involved in a sexual relationship with his subordinate and that this was true irrespective of whether he took any action against the best interests of the WBG.

In CK v. IBRD (Decision 498), the applicant (a level GG male staff member) had been demoted by HRDVP upon a finding of misconduct following allegations that he sexually harassed his subordinate, a female short-term consultant. The applicant alleged bias in EBC’s investigation and procedural irregularities in the manner in which HRDVP concluded its decision. The tribunal validated EBC’s findings and also found from its own independent review of the record that there was no evi-dence of bias by EBC or HRDVP.

In CS v. IBRD (Decision 513), the tribunal also upheld EBC’s findings that the applicant’s allegations of retalia-tion and harassment by his manager could not be sub-stantiated. In this case, the applicant had challenged the Bank’s decision not to renew his term appointment. He alleged that the Bank had “fabricated” the reasons for the nonrenewal decision, which, he contended, was in fact an act of retaliation related to (i) his outspoken sup-port for reform initiatives at the Bank, which he regularly posted on the Bank’s Intranet, and (ii) the fact that he had reported his manager’s allegedly harassing behavior to his director. The tribunal found that the applicant had failed to substantiate his claim that the nonrenewal deci-sion was an act of retaliation. The tribunal further found that while the records indicated that the applicant’s rela-tionship with his manager became difficult, there was insufficient evidence to support a finding of harassment.

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EBC’S OUTREACH PROGRAMS

In FY15, outreach, communication, and training remained a high priority for EBC. EBC undertook different activities aimed at fostering staff members’

awareness of the Bank’s ethical standards. EBC’s activities had a strong focus on addressing staff fears of retaliation and reprisal, on sexual harassment, and on the “Ethics at Work” learning series. EBC observed that because of the decline in the number of staff participat-ing in onboarding-related activities such as new staff orientation and the Code of Conduct e-learning—which is mandatory for new staff—the total number of indi-viduals reached by EBC in FY15 declined slightly over FY14. The number of staff attending face-to-face train-ing, however, more than doubled in FY15, given EBC’s deployment of the anti-retaliation training initiative and the ethics awareness training offered to all staff in the locations where the managerial training was offered (table 4). EBC trainers delivered regional workshops in Bangkok, Buenos Aires, Chennai, Dakar, Delhi, Dubai, Hong Kong, Istanbul, Jakarta, Johannesburg, Moscow, Nairobi, Panama City, Paris, Rabat, Sydney, Vienna, and Washington, D.C.

Addressing Fear of Retaliation and Reprisal

One of EBC’s priorities in FY15 was to address staff reluctance to report misconduct and the fear of retalia-tion and reprisal. With the support and participation of President Kim, over 1,100 WBG managers joined a face-to-face conversation, the “Enabling Collaboration and Preventing Retaliation Workshop,” and nearly 700 staff took the e-learning “Preventing Retaliation at the World Bank Group” that followed. The training was designed to raise awareness and train staff members on workplace norms and the importance of enforcing their rights, and the avenues of assistance available to staff.

The “Enabling Collaboration and Preventing Retaliation Workshop” focused on the key role that managers play in fostering a workplace in which staff are comfortable expressing dissenting views. EBC had the ambitious goal of reaching all headquarters-based Managers and Supervisors between November and December of 2014, and country-based managers start-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.

12 O F F I C E O F E T H I C S A N D B U S I N E S S C O N D U C T F Y 1 5 A N N U A L R E P O R T

of partners from Human Resources, the Office of the Ombudsman, Internal Justice Services, Peer Review Services, and seasoned WBG staff to co-deliver the workshop with an EBC staff member. Full deployment began in November 2014, and EBC delivered 87 ses-sions to over 1,100 managers at headquarters and 17 regional locations.

The participants generated a substantial set of rec-ommendations on how the WBG could better address and mitigate the fear of reprisal:

• Demonstrating accountability and equality. Many participants believed that there is a need for the institution to communicate the fact that staff mem-bers, regardless of seniority, are held accountable for their actions.

• More effective managerial training. There is a need for more effective training for both managers and supervisors on so-called “soft” or people skills. Managers should also have access to tools and techniques needed to handle challenging issues involving staff.

• Increased awareness of the WBG’s internal justice mechanism. Knowledge of the IJS mechanism in the WBG remains relatively low, and a number of misperceptions must be more effectively addressed.

• Promoting constructive criticism. The perception exists among many staff that there is a “shoot the messenger” culture. Efforts must be made, starting with senior management, to change this perception.

• Addressing the structural impediments that contrib-ute to fear and uncertainty. One example commonly cited is the WBG’s contract architecture, with many staff on contingent or short-term contracts.

The majority of participants rated the workshop positively, especially country-based managers who sug-gested it should have been longer than the 2.5 hours allotted to it. One manager said, “This is the first time in my career here when I’ve had the opportunity to sit down and talk with other managers about these issues.” Another said, “This is the first time I have ever received training in handling these types of issues.”

EBC shared these recommendations with senior management, and the underlying concerns remain on the agenda as a high-priority action area in FY16.

Field Office Misconduct Training, FY15

While a major focus of EBC in FY15 was the “Enabling Collaboration and Preventing Retaliation Workshop,” as part of its ongoing efforts to meet with staff members, EBC staff also trained over 1,400 WBG staff based in 17 country offices to wide acclaim, often to standing-room-only audiences. In particular, participants appreci-ated EBC’s use of interactive case studies and real-life examples to flesh out what the WBG considers to be misconduct and unethical behavior. Many participants suggested that EBC provide these types of trainings at least once a year to all staff, including managers, and to allocate more time to cover a wider array of topics.

To make the best use of resources, EBC delivered these misconduct trainings during missions undertaken to provide the “Enabling Collaboration and Preventing Retaliation Workshop” to country office–based manag-ers. Seizing on the opportunity that the anti-retaliation trainings provided, EBC reached an additional 1,400 staff members in country offices it otherwise would have missed.

EBC worked closely with management in each country office visited to tailor the training to the specific needs of their staff and to address the types of issues confronting each office. EBC views training as a special opportunity to learn more about the concerns of staff in country offices. While conducting trainings in country offices, EBC always makes an investigative team avail-able to meet with staff wishing to report misconduct or discuss other areas of concern.

ETHICS AT WORK

EBC continued its successful “Ethics-at-Work Learning Series” which presents organizational ethics issues with a focus on engaging staff on substantial and practical topics, with direct relevance to staff’s daily work and operations. In FY 15, the third year of presenting the series, two successful sessions were held and featured as Today articles:

• Professor Barry Schwartz of Swarthmore College, on “Pathology of Bureaucracy.”

• Professor Eyal Winter of Hebrew University, on “Our Emotions are More Rational than We Think.”

E B C ’ S O U T R E A C H P R O G R A M S 13

Sexual Harassment

Preventing and effectively addressing sexual harassment concerns were another focus for EBC in FY15. During the year, EBC developed and piloted a face-to-face workshop for managers aimed at boosting awareness and skills in addressing sexual harassment. In addition, work began on an e-learning module for all staff on sex-ual harassment. Deployment of both the e-learning and the face-to-face manager workshop is planned for FY16.

Over the course of the past six years, EBC has inves-tigated 19 allegations of sexual harassment and submit-ted 11 reports to HRDVP.

Brown Bag Learning Opportunities

As part of its outreach program, EBC mainstreams les-sons learned in the course of investigations and HRDVP disciplinary findings through training and other types of outreach such as brown bag lunches to promote the reporting, detection, and prevention of staff miscon-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 Newsletter

In FY15, significant progress was made on increasing awareness and knowledge of a wide range of ethical issues in the WBG, as EBC launched its first newsletter in November 2014. The objective of the newsletter is to bring topical ethical issues to the attention of all World Bank Group staff members. Although the first edition was circulated to staff in the country offices only and pos-itively received, subsequent editions were circulated to all staff members. The newsletter is published quarterly, with each edition discussing different misconduct topics, 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-lights and discusses recent trends in unethical conduct reported to EBC. Since the publication of the first edition of the newsletter, there has been a significant increase in the number of requests for advice and reports of unethi-cal behavior received by EBC. In FY 16, EBC will continue to use the newsletter to educate and raise awareness of unethical behavior within the World Bank Group and also disseminate information about its activities.

15

EBC STAKEHOLDER ENGAGEMENTS

Tax Noncompliance

EBC initiated a successful collaborative effort with HR, the Legal Vice Presidency Institutional Administration, and the Tax Office, which resulted

in the implementation of a compliance-based approach to handling the failure by staff to pay U.S. federal and state taxes. This new compliance-based approach has allowed EBC to re-deploy its investigative resources to other high-priority matters. Tax-related cases require more time to review and process because of the neces-sary interface with government authorities.

U.S. citizens working at the WBG are obliged to pay their taxes to U.S. tax authorities under the Articles of Agreement. Since the salary of all other nationals work-ing at the WBG is paid on a net-of-tax basis, the WBG makes U.S. staff members whole by paying them annual tax allowances to meet their tax obligations.

A small proportion of U.S. staff members fail to pay their taxes when due or to use their tax allowances appropriately. Historically, when the WBG received a for-mal notice of tax delinquency from the U.S. tax authori-ties, EBC initiated an investigative review. In prior years, EBC spent a disproportionate amount of resources investigating these types of cases. In FY10, EBC inves-tigated 25 tax cases, and in FY15 EBC investigated one tax case, for which a report was sent to HRDVP.

Tax cases will now initially be treated as a compli-ance matter in that EBC will speak with staff members when noncompliance is alleged and, where appropriate, enter into a memorandum of understanding with staff by giving them a defined time period in which to resolve their situation with the U.S. tax authorities. Typically, this effort results in an installment agreement, an offer of compromise, or full payment to the Internal Revenue Service. In the event that a staff member does not com-ply, EBC will initiate an investigation. Significantly, this new approach has achieved increased compliance and a better use of EBC’s investigative resources.

G5 Program Compliance

In conjunction with its new approach to cases of tax noncompliance, EBC initiated a similar compliance-based approach to handling the failure of staff with G5 domestic employees to adhere to applicable U.S. fed-eral, state, and local laws, as well as to the WBG’s Code of Conduct provisions relating to the G5 program.

WBG staff members in the U.S. who hold a G4 visa may employ a domestic employee to work in their home as a nanny, housekeeper, or elder care provider, among other roles. The domestic employee enters and works in the U.S. under a G5 visa. The Code of Conduct mandates that staff members who employ G5 domestic employees meet certain standards when dealing with these employees to ensure their fair treatment and the consistency of their dealings with U.S. law and the WBG Staff Rules. These standards include maintain-ing an employment contract between the parties at all times, keeping adequate records of payments to the G5 employee, payment of their health care insurance, and attending the mandatory G5 orientation with their G5 employee.

While EBC continues to investigate claims that a G4 staff member is either noncompliant with the applicable standards or is otherwise mistreating the G5 domestic employee, EBC has made a proactive effort with the Human Resources Service Center to help WBG staff members achieve and maintain their compliance with the various standards and applicable laws. When G4 staff members are either unable or unwilling to comply, EBC initiates an investigation. Possible sanctions for abusing the G5 program have included suspension or even revocation of G5 privileges. Just as with EBC’s new approach to tax noncompliance cases, EBC has found that its similar approach to G5 compliance cases has actually increased staff members’ compliance while allowing EBC to be more efficient in how it handles these matters.

17

CONTACTING EBC

Reporting Allegations of Misconduct

REPORTING OBLIGATIONS

Staff are encouraged to report alleged staff misconduct either to their managers or to EBC; managers have an obligation to report such allegations to EBC.

DUE PROCESS

All individuals involved in the investigative process—including those reporting alleged misconduct, wit-nesses, and subject staff members—are afforded due process by EBC.

CONFIDENTIALITY

Information about an investigation and the identity of staff involved are disclosed only to individuals who have a legitimate need to know, consistent with Staff Rules.

Seeking Conflict of interest Advice and Guidance

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.

Conflict of interest advice will be kept confidential between the COI advisory team and the staff member and may be shared with others who have a legitimate need to know.

Information that has been shared with EBC’s COI advisory staff may be shared with EBC investigators if there is reason to believe that misconduct may have occurred. Staff are encouraged to approach EBC early, so that any COI concerns can be promptly addressed and effectively managed.

Due process protections are afforded to all staff who contact EBC.

RETALIATION

Retaliation or threat of retaliation by a staff member against any person who reports suspected misconduct, or who cooperates or provides information in connec-tion with an investigation, is prohibited. Retaliation or threat of retaliation constitutes misconduct in and of itself and may be investigated as such by EBC.

ANONYMOUS REPORTING

Staff have the option of reporting misconduct anony-mously. However, no finding of misconduct can be made based on anonymous allegations unless the allegation of misconduct is independently corroborated.

OFFICE OF ETHICS AND BUSINESS CONDUCT

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.

ANNUAL REPORTFY 15

OFFICE OF ETHICS AND BUSINESS CONDUCT

TEL: 202-473-0279 FAX: 202-522-3093EMAIL: ethics_helpline@worldbank.org

ETHICS HELPLINE: 1-800-261-7497(24 hours 7 days a week)

INTRANET: http://ethics.worldbank.orgINTERNET: http://www. worldbank.org/ethics independence, impartiality and integrity

ANNUAL REPORTFY 15

Office of Ethics & Business Conduct