Managing Staff Integrity

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Role of IT Professionals inCorruption Prevention
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Contents

• Corruption scene of Hong Kong
• IT a double-edged sword
• Legal and ethics issues
• ICACs services

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Corruption in Hong Kong

• Under control

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Corruption in Hong Kong

• Challenges professionalised insiders
  dishonesty cross boundary IT advancement

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IT Doubleedged Sword

• Constructive?
• Destructive?

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The Invisible Stealing Hands

• A computer operator of a bank
• Transferred the non-recorded interest from 20
  inactive deposit accounts to his personal account
• Stole 500,000

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ICAC File

• Add value transaction of Octopus card
• 4 station officers tampered with e-ticketing
  system ? no trace of
• value added
• proceeds registered
• Embezzled 200,000

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ICAC File

• IT experts breaking the safeguards?
• Syndicated corruption in the workforce?
• Unreliable vendor?

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A Simple Trick ofClick-Click

• Double click to disable the system from recording
  the transaction

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Corruption
An act of abuse of trust
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Prevention of Bribery Ordinance

• Both offer and recipient of a bribe are guilty
• Government
• Public bodies
• Private sector

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Prevention of Bribery Ordinance

• Prevent breach of trust
• Protect interest of stakeholders
• Ensure fair-play

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PBO 4As

• Agent (employee)
• Accepts/solicits Advantages
• An Act in relation to principals (employers)
  business
• Without principals Approval

(Max. penalty 7 years imprisonment 500,000
fine)
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Advantage

• Gift, loan, fee, reward, commission
• Employment or contract
• Payment, release or discharge of loan or
  liability
• Service or favour (except entertainment)

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Entertainment

• It refers to food or drink for immediate
  consumption on any occasion.

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Case Study
Unusual Conflict ????

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Unusual Conflict

• Can you identify any conflict of interest
  situations ?
• If you were David, would you take Alexs
  suggestion ?
• What can you do to avoid such malpractice ?

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Conflict of Interest

• Dubious relationship
• Favouritism to suppliers
• Recruitment of relatives

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Ethical Decision Making

• Abide by the law
• Comply with company / professional regulations
• Uphold ethical standard

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Conflict of Interest

• Outside employment
• Clients/Business associates investment in a
  company in which you have a financial interest
• Diverting company business to personal
  business/business of close friends or relatives

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Professional /Business Ethics
Ethics (highest or optimum standard)
Legislation (lowest or minimum standard)
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Put Ethics in Practice

• Issue clear guidelines
• Establish effective system
• Encourage whistle-blowing

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Corruption in Hong Kong

• Soft corruption conflicts of interest wine
  dine indebtedness

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The Dos

• Declare to the employer
• Follow the doubt principle
• Dont place yourself in a position of obligation
• frequent excessive entertainment
• indebtedness

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The Dos

• Know the anti-corruption laws
• Follow companys policy
• Properly handle conflict of interest
• Be self controlled wine dine, indebtedness,
  etc

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Use of IT inEthics Management

• Timely
• Paperless
• Open door

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Reports / Enquiries
ICAC Report Centre or 7 Regional Offices
25 266 366 (24hrs)
GPO Box 1000, HK
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For Preventive Services, Enquiry Report

• Regional Office (Kowloon West)
• Community Relations Department
• ICAC
• ADD G/F Nathan Commercial Building,
• 434-436 Nathan Road, Kowloon
• TEL [phone]

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HK Ethics Development Centre Website

• www.icac.org.hk/hkedc

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Thank You!
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Constructive Use of IT

• Honest people
• Reliable system
• Best practices
• Ethics culture