A reflection on understanding the roots of wrong behaviour …towards a more ethical business environment. The pitfalls of corruption and how governance elevates organizations beyond the waste and injustice of corrupt systems

1. Geneva - 17th to 20th May 2018
ebbf’s 28th international learning event
ethical business building the future,
rethinking the governance
of your organization
#ebbfgovernance
proceedings
Keynote
Malika Parent
Governance as a path to truth

2.
Governance a path to
truth
Independent International Anti-Corruption Expert
Malika Aït-Mohamed Parent
17 May 2018

3. A reflection on
understanding the roots of wrong
behavior
…towards a more ethical business
environment

5. Hermann Ebbinghaus curve
(1850-1909) German psychologist
Source: Google images

6. Getting the right behaviour in
the business context requires
to understand
the complexity of
our own dark side

7. From humanitarian
exposure
to the fight against
corruption

8. “International
humanitarian
assistance in 2016
reaching
US$ 27,3 billion”
(GHA, 2017, chapter 2,
p.27)
90 pages of report
Zero reference
to corruption

9. U.N. Secretary-General
Ban Ki-moon at the
closing session of the
2012 Economic and
Social Council high-level
panel on accountability
and transparency.
Photo by: Rick Bajornas / U.N. Photo
“30 percent of aid lost
to corruption”

10. as for any business context…
Source: google images

11. … with some specificities
Source: google images

12. Trends
90’s … => Integrity
2000 … => Accountability
2010 … => Transparency
2020 … => guess what …

13. Any good news?

14. From reality to truth
• Truth
• Which truth?
• The truth of facts?
• The truth of belief?
• The truth of the good intention?
• The truth of good will?
• The truth of perspective ?…

20. Controversies

21. Controversy 1 : The myth of good will
Goodwill can be a myth
and a threat to good governance …
But good will is just an intention, it has
never been a firewall.

22. Controversy 2: Wrong behaviour : me/
versus others
Luis Moreno Ocampo
former Chief Prosecutor of the International Criminal Court
(2003 – 2012

23. Fraud triangle
Motive
Opportunity
Fraud
Rationalization
Source ACFE
See video 4’34’’

24. Cressey’s triangle

29. PWC- 2014

30. Source: https://assets.kpmg.com/content/dam/kpmg/pdf/2016/05/profile-of-a-fraudster-infographic.pdf

31. https://www.strategy-business.com/article/Why-Good-Employees-Do-Bad-Things?gko=f472c

32. Maryam Kouchaki’ s Research findings (6
studies)
Studies 1 and 2 … anxiety in the workplace
=> anxiety, both induced and measured, can
lead to self-interested unethical behavior.
=> anxious individuals are more willing
(a) to participate in unethical actions in
hypothetical scenarios
(b)to engage in more cheating to make
money in situations that require truthful self-
reports.
source: http://psycnet.apa.org/record/2014-39090-001

33. Studies 3 and 4 … psychological mechanism underlying unethical
behaviors when experiencing anxiety.
=> anxiety increases threat perception, which, in turn, results in
self-interested unethical behaviors.
Study 5 …anxious individuals find their own unethical actions to
be less problematic than similar actions of others.
Study 6, data from subordinate–supervisor
=> demonstrate that experienced anxiety at work is positively
related with experienced threat and unethical behavior.
source: http://psycnet.apa.org/record/2014-39090-001

34. “Why we say yes”, Richard Bistrong, Former FCPA Violator & FBI/UK co-
operator video 7’36

35. From controversies to solutions

36. Example 1

37. What are the determinants of a moral choice?
When are people unaware of an ethical dilemma?
How is trust built and why do people lose trust in
integrity?
Behavioural Insights for Public Integrity guides
policy makers in building integrity systems in
which moral responsibility is not overlooked.

38. Findings
There is broad evidence that a small message, a “moral
reminder”, can be sufficient to induce ethical reflection. Such
moments of ethical reflection can be integrated in many policies.
Moreover, moral choices can be invoked by creating
commitments and by mentally preparing individuals for ethical
temptations.
Finally, over-strict control can have adverse effects. Excessive
monitoring of a trust-based rule might drive people to disregard
the rule, and create an entry-point for severe misconduct
Source: OECD Public Governance review, 2018, Behavioural Insights for Public Integrity p. 7

39. Source. Dr Sarah Brosnan; «Two Monkeys Were Paid Unequally”, Frans de Waal's TED Talk
https://www.youtube.com/watch?v=meiU6TxysCg
Video: 2’43Example 2

41. Example 3
TAP / Truth; Accountability / PurposeSource: FCPA blog, 27 April 2018

42. From controversies to solutions
Integrity framework (see
OECD ex.)
Fairness (see capuchins ex)
Trust (see FCPA example)
… authenticity, respect,…

43. Take away… for further reflection
Who knows what we would do in difficult
circumstances?
Criminals wear ties, not tattoos (Nikos Passas)
“A lot of things are lawful because it is
impossible to prove that they are not lawful”
A senior compliance manager in private sector

44. 1. Hermann Ebbinghaus curve
Source: Google images

46. Thank you
Malika Aït-Mohamed Parent
Independent International Anti-Corruption Expert
Frequent Visiting Lecturer
International Anti-Corruption Academy, Austria
Faculty member of the Rule of Law and Anti-Corruption Center,
ROLACC Geneva
http://anticorruptionexperts.com/malika-ait-mohamed-parent/
@MalikaParent