Introduction
In the world today, it is important for management of organization to run their affairs in an ethical manner so that the reputation is not affected and also to increase its returns. Public financial management is part of the state function that deals with providing clients with a wide range of services and products that can meet their financial needs. All public entities require finances so as to run the affairs of their organizations, provide services and to ensure activities are carried out according to the role and mandate that is within the institutional landscape of the state. The following are the services that are provided by the public sector to the public they include: strategic consulting, bond pricing, debt management, state revolving fund services and quantitative strategies, which make the operations of an organization to be carried out effectively.
The issues that are addressed within the public financial management framework are : collection of revenues, allocation of funds through the budgetary process, ways and means of utilizing the public revenue such as procurement of goods and services ,it also involves the internal and external auditing of the state institutions and the rate of public performance and spending.
Main body
A good financial management system is said to consist of the principles such as : presence of systems that facilitate and encourage good leadership practices, management reform strategies and action plans, diagnostic work that is integrated and coordinated through drawing the timing and scope as determined by the country’s needs. The implementation of reform and capacity building consists of detailed diagnostic analysis that adds value to the government’s budget and reform processes that are weighted so as to enhance proper delivery of services to the customers. Public financial management reform work should be framed in such a way that there is a multi-year horizon that has a wide variety of priorities that are built upon well coordinated donor approach that is linked in a robust, monitored and controlled manner. The framework should state the gains earned and losses incurred as a result of using the system so that the affairs of the organization are carried out effectively.
Ethics refers to the standards that are set so to guide a person on how they should conduct themselves as stipulated in the code of conduct of organizations and society. It is practiced in public sectors so as to helps the organization to understand its credibility that later on leads to increased support from government agencies and political leaders.
There are five issues that are taken into account when ensuring an organization is setting in ethical status these include; leadership that states that top public policy makers and top administrators should initiate ethics that is demonstrated through word and deed, commitment is another key factor that states that all persons involved in decision making should create time, budget money and plan how they should undertake their businesses. Ethics in financial institutions is observed when all the rules and regulations that pertain to different kinds of behavior of protecting the interests of the customers and in properly managing the assets and equipments of an organization are carried out appropriately.
Corruption is a management problem that is practiced by a few individuals within an organization for their own interests and it affects the reputation of an organization therefore should be avoided at all times. It is also practiced in the institutions where laws are not adhered to; where weak public institutions fail to enforce their core values or fail to provide contol, oversight and transparency. In every democratic government integrity is considered to be an ethical value that is used to overcome corruption since it is critical for sustaining economic development and for ensuring that there is successful transition in the economy.
Culture of ethics that is created within an organization should be carried out through adopting a value based code of ethics so as to fulfill the objectives of both the individuals and organizations. The objectives of the code of conduct are to ensure that operations of an organization are carried out effectively and effectively. Stakeholders involved in carrying out activities of an organization are expected to develop a consensus and design program of how they should carry out their businesses since it shows that ethical values are been practiced within an organization. Implementation program involves developing ethics that form part of ensuring that policies are carried out effectively. Reflection and renewal are assessment programs that involves annual re-adoption of code and exploration of ways in which communication should be conducted between persons who may be working together within an organization.
According to Anthony and Scott, he stated public executives assure the public that they conduct their duties and responsibilities if they fulfill the following obligations; perform their duties as per their skills and knowledge, serve the government diligently, serve their workers fairly and with honesty while they are carrying out their duties that involves the public and other public sector employees. The public executives should avoid real or apparent conflict of interests and act in the interest of the people that they are serving.
The executives should exercise technical or professional judgment, maintain and develop knowledge of their professional field and public administration. The legislative, industrial or administrative requirements should be adhered so as to ensure rules and regulations are followed by all parties within an organization. They should also ensure that there is equity in the employment process so that the right persons are employed to hold various positions within the organization as this can contribute to greater return to the organizations.
Public executive should treat members of the public and other staff with respect and should provide the proper guidance and assistance that may be required as the public have a right to be served fairly at any particular time. Public resources should be utilized effectively so as to increase the output of a company. Knowledge of agency, purpose and corporate plan should be handled with care as it can affect the performance of an organization in the future.
According to Nadler he stated that public executives should exhibit high standards of integrity so that the public can be confident in their work and that the work is being carried out appropriately by the official who has been appointed to serve them. Code of conduct and ethics is a framework that is established so that ethical decision making process can take place through establishing common standards of behavior that should be observed by all the parties within the organizations. Public executives should act and be seen to act as per the interests of the public since they determine how successful an organization will be in the future. They should also be held accountable for their behaviors so that the reputation of the company cannot be tarnished as this can result to low returns for an organization.
It has been observed that active and open discussion of ethical issues and potential dilemmas between employees and their employers can lead to a healthy organizational culture and integrity within the workplace. Public employment refers to the position where employees are expected to act according to the public interests and also to observe ethical behavior when carrying out their official duties.
It was noted by Mark, Rhodes and Weller that under the Public Sector Management Act 1988 the executives within the organizations are expected to adhere to principles and practices that are within the code of conduct and ethics of the public sector executives’ act. The values and behaviors that should be observed by the executives while undertaking their tasks include: intergrity, impartiality, responsiveness to the public interests, accountability and honesty (1-17).
Public executives are also expected to make proper decisions or to take actions that are based on statutory power so that the activities of the organization can be carried out effectively. They should be informed about the scope of power and the legal obligations that ensure that power is exercised appropriately among the employees who have been employed within an organization. Decision-making process is considered to be taken to be undertaken effectively if all issues that are pertinent are taken into account so as to bring about development within the organization. It is also ethical to make decisions at the appropriate time so as to avoid wastage of time since these could contribute to adverse or negative results to an organization.
The persons employed within the public sector should avoid making malicious statements that may bring harm to person within an organization such as: false allegations, using of languages that may be malicious whether they are intentional or not as it could affect the reputation of an individual within the organization. Omission of material information that may be misleading should be avoided as it could have adverse effects on persons who may be performing various tasks within the organizations.
The government can be assisted by public executives in implementing policies that are discussed by the top officials so that the affairs of an organization can be carried out effectively. Decisions being made should not consider parties in which employees are conducting their activities, but every person within an organization should take part in ensuring the affairs of an organization are carried out in the right manner. Executive should advise the government and its ministers on all important issues that may bring about development and lead to employment opportunities that would reduce poverty levels in countries. Different kinds of options should be outlined so that their advantages, disadvantages, costs and consequences are analyzed so that the right course of action should be undertake within a stipulated period of time.
Concepts such Control, guidance and management are applied in various organizations as they are considered to be mutually reinforcing for the public sector organizations. Transparency is an important factor since it shows how control, management and guidance should interact so as to ensure that the activities are carried out effectively. The public sector is entrusted with making good decisions for organization therefore; it should be open to independent scrutiny in all ways so that the public can continue to accept to receive their services in the future. Another ethical issue that should be practiced by the public sector is that of ensuring that vacant positions are advertised so that qualified personnel can be given a chance to apply for the advertised positions as per their qualifications.
Conclusion
All organization in different sectors of the economy should establish a code of conduct that stipulates how employees and other subordinate staff should behave within organizations so that the operations its can be carried out effectively since it can contribute to greater returns and growth within an organization.
Reference
Anthony, Cheung. And Scott, Ian. Governance and Public Sector Reform in Asia: Paradigm Shifts or Business as Usual. London: Routledge, 2003.
David, Good. The Politics of Public Money: Spenders, Guardians, Priority Setters and Financial Watchdogs inside the Canadian Government, Toronto: University of Toronto Press, 2007.
Gambit, Bhatt. Working Paper No.17: Post-NPM Themes In Public Sector Governance. Wellington: State Services Commission, 2003.
Jan-Erik, Lane.The Public Sector: Concepts, Models and Approaches, 3rd Edition, London: Sage, 2000.
Mark, Bevier., Rhodes, R.A.W. And Weller, Patrick. “Traditions of governance: Interpreting the changing role of the public sector”, Public Administration, Vol. 81, No.1, 2003: 1-17.
Nadler, Judy.Creating a Culture of Ethics in the Public Sector. 2008. Web.
Paul Thomas, G. Performance Measurement, Reporting Obstacles and Accountability. Recent Trends and Future Directions. Manitoba: University of Manitoba, 2004.