Transparency and Integrity Methods for Public Utilities Systems

Introduction

A globalized or “semiglobalized” world (Ghemawat, 2018) must strive to achieve stable and transparent economic environments. Nations should determine the proper level of regulation to create markets and make externalities visible to the institutional apparatus so national and international businesses or transactions can be fulfilled efficiently and sustainably (Boyd & Martin, 2022). Likewise, the care and good use of public resources and public administration should be encouraged to satisfy political constitutions and laws (Apostolou & Tjortjis, 2019). A stable and transparent economic environment prevents imbalances in the supply and demand of goods and services from distinct economic actors. Unequal relations between market participants may arise from the lack of adequate controls to prevent and detect corrupt practices like transnational enticement and bribery (Bourne, 2022).

Transparency and integrity are two central concepts in corruption and bribery analysis. On the one hand, transparency relates to the degree of an organization’s openness to disclosing information to third relevant parties; on the other hand, integrity relates to codes of conduct and values that any society believe and accept. According to the Organization for Economic Co-Operation and Development (OECD, 2020), no country or organization is exempt from transparency and integrity abuse. Addressing this challenge requires the participation of the whole of society and government. The whole of society is an approach in which companies, civil society, and individual citizens reciprocally engage with governments to ensure that society respects ethical values and codes of conduct (OECD, 2020). Doing so guarantees a set of principles related to transparency and integrity that individuals should implement within every type of organization. This crucial approach sets general guidelines within society; however, organizations should also apply methods and standards according to their circumstances. For example, a utility company in the water sector differs from a generator in the energy sector (Llamas et al., 2009). In addition, civil society organization has differing methods for addressing risk. Without general and specific guidelines and standards, the various forms of corruption and their perceptions can eliminate trust in governments, companies, individuals, and markets. Similarly, tolerance of corruption and organizational misconduct by stakeholders and the social fabric of businesses leads organizations to abandon innovation in all its forms, including social and sustainable practices and free competition. This paves the way for corrupt, illegal practices within business activities and interactions with society.

Governments must monitor and supervise society’s acceptance of ethical values and codes of conduct and employ policy tools to correct deviations from the norm (Muers, 2020). Moreover, governments should follow the implementation of transparency and integrity standards within all entities to avoid detrimental actions from workers and officials who might be tempted to divert their functions and promote their interests to the detriment of citizens and the community as a whole (Wilkes & Voormeulen, 1989). Therefore, all efforts against corruption related to transparency and ethical methods should strengthen trust in institutions, industries, markets, and a country’s economy. This chapter is organized as follows: First, the background section discusses the concept of public utility systems, the legal framework of anticorruption and antibribery activities, and the ideas behind ethical values, transparency, and corruption. Second, the following section defines the transparency and integrity programs and highlights their importance to the public utility system. Third, the solutions and recommendations section explores these programs' implementation stages, standards, and guidelines and delivers real live implementation examples. Finally, this chapter discusses future research directions and provides concluding remarks.