Engineering: issues, challenges and opportunities for development ...

AN OVERVIEW OF ENGINEERING4.6.5Peter BoswellBusiness IntegrityManagement Systems inthe consulting engineeringindustryCorruption is a zero-sum game where bribery, extortion, collusionor fraud allows someone to profit at society’s expense,creates unnecessary waste in the procurement of projects,undermines the values of society, breeds cynicism anddemeans the individuals involved; it must be curbed for theeffective functioning of a sustainable and equitable society.Engineering consulting firms in both developing and industrializednations confronted by corruption in everyday work athome and abroad, particularly in government procurement,wish to supply services without concerns about corruption,and be assured of competitive bidding on equal terms. Moreover,clients increasingly require assurance that consulting engineeringfirms operate in a corruption-free environment.A global consensus has developed that corruption is notonly wrong, but also destructive to sustainable development,quality projects and free market systems in an era of globalization.The main international anti-corruption strategy aimsto create a strong legal framework that will make the cost ofnon-compliance an important factor, thereby increasing thecommercial risk associated with corrupt practices. Only withthe momentum that can be achieved by a global commitmentsimilar to that for capacity-building and sustainable developmentwill it be possible to make a difference. Moreover, to becontrolled effectively, systemic corruption requires approachesThe FIDIC Code of EthicsFIDIC specifically outlaws corrupt behaviour through its code ofethics: ‘The consulting engineer shall neither offer nor accept remunerationof any kind, which in perception or in effect either:a)b)seeks to influence the process of selection or compensation ofconsulting engineers and/or their clients; orseeks to affect the consulting engineer’s impartial judgment.’that encompass both the demand and supply sides of the business,and both givers and takers.The International Federation of Consulting Engineers ( FIDIC)has denounced corruption for many years in arguing that theprincipal criteria for selecting a consultant should be servicequality and the consultant’s qualifications. FIDIC considerssystemic corruption as a priority issue. The FIDIC strategy is toplay a proactive role in joining the worldwide effort to combatcorruption by supporting legislation, promoting high ethicalstandards, cooperating with international agencies, offeringobjective advice for procurement processes, and ensuring theimplementation of management practices in firms.Efforts to identify specific courses of action that would leadto reduced corruption began in 1998 with the formulation ofa strategy and action plan. The World Bank enthusiasticallyendorsed the initiative by establishing an Integrity ManagementTask Force under FIDIC’s leadership, with the Inter-AmericanDevelopment Bank and the Pan-American Federationof Consultants (FEPAC) as members. The task force recommendedthe establishment of ‘integrity manuals’ based on ashrewd and concrete analysis of procurement procedures thatwent wrong or, at least, on a detailed risk analysis of hypotheti-Implementing a BIMSBusiness Integrity is an organization’s ability to fulfil itscommitment to a code of ethics on behalf of all its stakeholders.So Business Integrity Management – as opposedto corruption control or integrity assurance – seeks to satisfystakeholders, internal as well as external. BIMS thereforeconsiders the holistic implications of all elements ofmanagement on an organization’s products and services.It seeks continuous integrity assurance at every transactionpoint along the way toward the delivery of the servicesoffered. In other words, a BIMS is a set of interrelatedelements designed for an organization that wishes to bemanaged by integrity principles; it is what the organizationdoes to ensure that its work-flow is corruption free.A BIMS for ensuring the ethical delivery of consultingservices is voluntary and can be adopted by organizationsof any size. An organization firm wishing to adopt BIMSprinciples must implement a BIMS that complies with theFIDIC BIMS guidelines.FIDIC’s BIMS is designed so that it adds value and generateseconomies of scale for organizations that are committed toquality management. The BIMS principles should be compatiblewith the ISO 9000 family of quality managementstandards, and capable of being implemented independently,concurrently or in parallel with an organization’squality management system.A commitment to quality management aims to continuouslypromote best practice in consulting work. FIDICstrongly recommends the development of a quality managementsystem in member firms, where implementationis a step-by-step process requiring continuous improvementand a commitment in terms of policy and resources,regardless of the size of the firm. Designing and implementinga BIMS involves identical considerations.Once the BIMS is operating properly, and the organizationis confident that the guidelines are met, an evaluationprocess should be initiated to ensure continuous compliance.This process can involve: first-party evaluation, wherethe management and the staff representative evaluate theBIMS; second-party evaluation based on client feedback;and third-party evaluation by an outside body. For evaluation,it can seek an external audit, a peer review by anexperienced team drawn from several organizations, orcertification based on having a recognized authority verifythe BIMS with respect to its documentation and procedures,possibly as part of an ISO 9001:2000 quality certificationprocess.195