The results in South Australia recently probably illustrate this better than anything. A party that was elected on a mandate to bring openness, honesty and transparency to the political system has been given a harsh rebuke by the electorate for its apparent lack of all three.
Which begs the question: by what instrument are we meant to judge not just ministers but all those elected to serve the people? It has become fashionable to frame Codes of Conduct for ministers by governments of all persuasions and even, in the case of the Federal government, codes for political lobbyists. But does anyone believe them? The absence of punishment or the frequent calling of exceptions suggests that they are codes in name only.
In business, codes of conduct and codes of ethics are increasingly used to map the ethical territory but are also now used to raise the standard of executive performance. Issues such as inappropriate use of assets, favourable treatment of family and friends, accepting or giving gifts in exchange for commercial favours, inappropriate behaviour towards colleagues or subordinates and conflicts of interest are now vigorously exposed in companies concerned for the protection of their reputation. But where are similar standards exacted in the political sphere?
Take the issue of conflicts of interest; if a director of a company, or an executive or employee has a family relationship with someone with whom the business seeks to do business, they have a duty to declare the interest and make sure that they are completely separated from any decision that might have an impact on the commercial decision. We have seen many prosecutions and sometimes sackings of CEOs who have failed to take action where even a perceived conflict exists. But we rarely see this carried out in the political sphere. There was the much-publicised case of the former PM’s brother and other friends where there was the perception of a conflict and where decisions were made nonetheless. Take, for example the current debate in the Federal Parliament over the proposed split up of Telstra, being driven by the Government’s wish to see the retail and wholesale arms separated off in the interests of fairness to consumers. The Opposition is opposed and consequently in the Senate the decision will come down to the person holding the balance of power, Senator Fielding of Families First. But what so far has seemed to have escaped public scrutiny is that apparently Senator Fielding’s brother is a senior executive with Telstra.
In any other sphere of life, be it the local surf club, the local council or the Board of any listed company there would be an obvious conflict of interest and the person concerned would be obliged to stand aside. Where do the principles of openness, honesty and transparency lie in the case of elected representatives, especially those not governed by party rules or codes? In the post-GFC world, business civil society is demanding higher standards of accountability of our business leaders in these three spheres. Why does it not also demand the same accountability of the elected leaders who give it its social licence to operate? There needs to be a Code of Conduct that covers all elected representatives, with appropriate sanctions including, in extreme cases, expulsion from Parliament and administered by an independent authority such as the office of the Speaker. Otherwise, people can legitimately ask, “who regulates the regulators” and we can expect trust in our politicians to continue to deteriorate.
ABSTRACTA 2
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All data and information provided on this blog is for information purposes only. Managing Values makes no representations as to accuracy, completeness, suitability, or validity of any information on this blog and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.
