Hi-Tech Entrepreneurialism at Its Best or Worst?

3.3 Hi-Tech Entrepreneurialism at Its Best or Worst?

Controversies: 3.11, 4.15, 6.12 Key Words: urban planners, county, conflict of interest, consultant Case Complexity → Low CD: 6.2 International City/County Management Association Code of Ethics CD: 6.4 American Institute of Certified Planners Code of Ethics

Jan and Bill are ambitious, energetic urban planners employed by a county plan- ning agency in a growing metropolitan region. Their work on several city compre- hensive plans brings them much praise, including several positive stories published in the local newspaper. One day Jan says to Bill, “Why don’t we try to make some money as planning consultants? We can advertise ourselves on the World Wide Web with a web site. The costs would be minimal, and as long as we don’t contract with clients doing business with our agency, there shouldn’t be any ethical or legal issues to contend with.”

Bill gives Jan’s suggestion a few days of thought, and a week later they have a web site in place. On the web page, Jan and Bill are presented as J&B Associates, Urban Planners. Services that their firm can provide include, among other things, market analysis, community planning, business site selection, and geographic information systems.

Although the web page does not identify Bill and Jan’s current employer by name, it does note that they have local government experience as planners

I and II. Moreover, the page contains their firm’s e-mail address and telephone number. Two weeks later Bill, while working on county time, receives a telephone call inquiring about his services as a consultant. You overhear the call.

Discussion Questions

1. What should you do?

2. Should you report the matter to your supervisor?

42 ◾ Ethics Moments in Government: Cases and Controversies

3. Should you approach Bill and Jan and inform them that they are dangerously close to being unethical?

4. Should you accuse them of being unethical?

Case Assessment

Lauren Palmer, Assistant City Manager, City of Manhattan, Kansas:

Many local governments have policies that require employees to seek supervisory approval before obtaining outside employment. Nearly all restrict or limit the use of organization resources (phone, computer, employee time, etc.) for personal matters. Because I overheard Bill’s phone call, I would approach him and politely suggest that if he has not already talked with his supervisor, he may want to make him or her aware of the new business endeavor. I would also be clear that failing to both disclose the situation to management and limit his personal phone calls puts me in an awkward position of having to be the tattle-tale. Bill and Jan should be given an opportunity to correct any policy violations before the matter is reported up the chain of command. However, as a public servant, my obligation is first to the public. If Bill refuses to voluntarily comply with policy, I would report my observations to a supervisor.

A more challenging situation is one in which no policy violation has been committed. The scenario does not indicate that the county has any policies or ordinances that would specifically prohibit Bill and Jan’s activ- ities as described. An ethical dilemma is created when no clear policy or legal answer is present. Ethics guide us in life’s gray areas. Ethics are highly personal and are influenced by a variety of factors including faith, family, and life experiences. Based on my personal code, I feel that Bill and Jan are acting unethically. Even if they are careful not to contract with county clients or use county resources, the appearance of impropri- ety still exists. Visitors to their web site may presume that Bill and Jan are operating their private business at taxpayer expense. This appearance alone would dissuade me from engaging in a similar private endeavor, but my personal ethical code does not govern the actions of others.

In any event, I would discuss the matter with Bill as a colleague, rather than as an enforcer: “Bill, have you thought about any ethi- cal issues in your new consulting business with Jan? I’m curious to know how you’re balancing your public and private workloads.” Before talking with Bill, I would consult the American Planning Association (APA) for advice. Many professional organizations have ethics codes to guide the conduct of their members. Seeking input from peers in the profession gives me credibility in discussing the situation with Bill. Sometimes the greatest outcome in an ethical dilemma can be

Professionalism and Ethics ◾ 43

the dialogue toward finding a solution. Even if Bill, Jan, and I never see eye-to-eye, if I confront them, it may encourage them to take extra precautions in how they run their business.

Sean Stegall, Assistant City Manager, City of Elgin, Illinois:

My comments assume that I am a peer to the planners and not in a supervisory position.

My initial move would be to speak privately to both parties to let them know that I was aware of the recent establishment of J&B enter- prises. I would begin by congratulating them on being in a position to undertake such an endeavor and then query them on how they came to the determination that their enterprise was not going to negatively impact the county. Essentially, I would seek to discover whom they sought for advice (i.e. county legal department, American Planning Association, supervisor, etc.). This dialogue will force them to reexam- ine the steps they took (or didn’t take) in arriving at their decision.

During the course of our conversation I would also offer my opin- ion on the matter. It is important to note that I would refrain from stating my opinion at the open of our conversation and I would try to avoid having it appear that I am judging their actions as being unethical. I would convey to them that even if their actions are tech- nically legal, consistent with the American Planner’s Association’s ethical guidelines, and have been approved by their supervisor, they should remain concerned about the appearance of such an arrange- ment. Furthermore, it is inevitable that they will be sending a “mixed message” to their potential clients who may find it nearly impossible to distinguish their private and public roles. It is also probable that some clients may seek to take advantage of the situation by hiring them for non-county projects when their true intent is to gain owner- ship and influence over them when it comes to other projects which may require county approval.