Agenda item

At its meeting on 8^th February 2013, the Committee considered a report of the Committee on Standards in Public Life – “Standards Matter.”

As per the draft minute (attached at Appendix 1), it was agreed that the issue of ethical standards in respect of service delivery, especially where contractors are engaged, should be explored in more detail to ensure consistency across the organisation and, if necessary, appropriate monitoring and review of ethical standards issues.

The Chamberlain to be heard relative to this matter.

At its meeting on 8^th February 2013, the Committee considered a report of the Committee on Standards in Public Life entitled “Standards Matter.”  It was agreed at that meeting that the issue of ethical standards in respect of service delivery, especially where contractors are engaged, should be explored in more detail to ensure consistency across the organisation and, if necessary, appropriate monitoring and review of ethical standards issues.

The Chamberlain, who was invited to attend the meeting as lead officer for the City of London’s Audit and Risk Management Committee acknowledged the concerns that had previously been raised and explained that the development of new models of service delivery had created new ethical risks and challenges for the organisation.  He went on to advise that the decrease in direct service provision and increased commissioning was largely a new issue for the Corporation and therefore different questions had to be asked to ensure that appropriate levels of trust around the delivery of commissioned services could be developed.  In respect of the Corporation’s tendering and procurement arrangements, these were considered to be robust with effective due diligence processes in place.  However, the governance arrangements of external organisations should also be a consideration. 

In respect of the lobbying of Members by external organisations and/or individuals, specifically in respect of contracts and procurement opportunities and the conflicts that could arise for Members, the Chamberlain advised that whilst Members were advised of the need to avoid exclusion from contract selection, no general guidance had been issued to Members about how to manage informal approaches by contractors and attempts to discuss possible contracts.  The Committee felt that given the potential conflicts that could arise; some guidance should be drafted and included in the overall guidance to Members about the Corporation’s governance framework, Members’ responsibilities and potential risk areas.  It was suggested that the guidance should remain as concise as possible, with helpful examples to highlight scenarios that Members might encounter.

Members were advised that work was currently underway in respect of ethical standards and the Committee’s views would therefore helpfully inform this work.   

RESOLVED - That, in respect of the potential conflicts of interest that could arise as a result informal approaches by contractors and attempts to discuss possible contracts and procurement opportunities, guidance to Members be drafted and submitted to a future meeting of the Committee for approval ahead of circulation to all Members as part of the overall guidance to Members about the Corporation’s governance framework, Members’ responsibilities and potential risk areas.