business report

Assignment 2: Business Submission

Name: A Student

Student number: 12345678

Student email: [email protected]

Tutor’s name:

Tutorial day and time: Wednesday 8am to 10am

Name of company: Serco

Semester and campus: Semester 2 2015 – Bentley

Title: Business submission to Serco Executive

Word count: 1190 words

To: Serco Executive

From: A Student, Serco Regulatory Compliance Officer (Immigration facilities)

Re: Preparation to join UN Global Compact Local Network – compliance with Principles

Introduction

At Serco, we are committed to being a responsible corporate citizen and meeting the expectations of our stakeholders. We strive to conduct all our business dealings in an open, ethical and transparent way, within the law to deliver on the financial and corporate commitments we have made to our customers and other stakeholders (Serco 2014).

While we are not a participant in the UN Global Compact, we are committed to living up to the standards outlined in the Compact, and have used these principles in creating our own Code of Conduct (Serco 2014).

Objectives

In preparation for joining the Global Compact Local Network, I considered Serco’s current performance in relation to Principles Two and Ten, and detail proposals (including implementation and impact on stakeholders) to improve our performance in these areas.

Principle Two: “Businesses should make sure that they are not complicit in human rights abuses” (UN 2015)

Current performance

As an international service provider contracted to manage and operate immigration facilities, it is imperative we always act with integrity and prioritise the ethical treatment of all those in our care, including detainees and immigrants, as well as employees and the community at large (Serco 2014). We focus on upholding the principles set out in the United Nations Declaration of Human Rights and Business, and abiding by the laws of the region (Serco 2014).

Serco have managed Australia’s immigration facilities since 2009 and, with a new five year contract having been awarded in 2014 (Kollewe 2014) immigration services are expected to remain a fundamental part of our operations for some time.

The treatment of refugees, both by Serco and the Australian Government, remains a contentious issue. We have been criticized by the media and human rights activists for the treatment of refugees in our care, including allegations that mental health issues such as self-harm and depression are rampant within our facilities (Tugwell 2011). It order to meet the expectations set out in our code of conduct, these concerns must be addressed, and all steps must be taken to ensure Serco is not directly or indirectly involved with the violation of the rights of those in our care.

Proposal

I recommend an independent review be commissioned into the treatment of detainees in Serco’s care, to investigate the validity of these concerns and, if appropriate, implement measures to eliminate any violations. I propose Serco employ the services of an accredited auditor to conduct an independent review of the immigration facilities managed by Serco to determine if there have been any violations of the Universal Declaration of Human Rights or national laws. The final report must be available to all stakeholders to demonstrate our commitment to upholding the principles. Implementation of any identified changes should be overseen by the auditors, and annual reviews will be required to demonstrate our dedication to continued compliance.

Benefits to stakeholders

· Detainees and employees would be provided with the opportunity to raise any concerns with the auditors regarding the facilities, procedures and treatment of staff members.

· This review would answer the concerns raised by human rights activist groups; they can be confident their concerns will be investigated and should any issues be identified they will be rectified.

Potential risks and challenges

· While an external audit would be costly, this investment is crucial for confidence in Serco’s continued involvement in the immigration sector globally. This initiative will show potential contractors around the world that we are prioritising human rights.

· If any violations were identified, publication of the results may adversely affect Serco’s business in the short term. However with demonstrated resolution of any issues identified, the long term benefits will include improvements in our public profile and potentially further contracts.

It would be cheaper to conduct a review internally but the results will not necessarily be viewed with the same degree of trust and confidence. A report from a respected, independent agency would provide the credibility we require.

Principle ten: “Businesses should work against corruption in all its forms, including extortion and bribery”

Current performance

As part of our Code of Conduct, Serco condemns any direct or indirect acts of corrupt behaviour, and pledges not to involve itself in any forms of bribery or facilitation payments (Serco 2014). As a global service provider, we interact with various government and non-government organisations, some of which may elevate the risk of corruption accusations. In order to reduce these risks, we have appointed ethics officers, implemented procedures to review and monitor the businesses we deal with, and we have improved business ethics training for our leaders (Serco 2014).

Prior to the implementation of such procedures, there were allegations of the mismanagement of public funds. In 2011, former Serco employees alleged fines charged as a result of contract breaches from government audits were dismissed for political gain (Tugwell 2011). A Serco contractor G4S also faced corruption claims when they were found to be charging the British Government for tagging offenders that were actually deceased, incarcerated and overseas (Telegraph 2013). These appear to have been isolated incidents but did harm confidence in our business.

Proposal

I recommend the business ethics training program for leaders should be expanded to all Serco staff. This training, focusing on internal corruption, must be provided to all existing staff, and included in induction training for all new employees to ensure all Serco officers are able to identify corrupt activities. I further recommend, an internal whistleblower process be established to ensure all employees can be confident in reporting suspect activity and that all allegations are thoroughly investigated and resolved.

Benefits to stakeholders

· This strategy would improve employee engagement, by empowering staff to take action against potential acts of corruption.

· A lack of internal whistleblower procedures, or confidence in these procedures results in employees airing their grievances and suspicions in a public forum. Having a rigorous internal processes would enable us to deal with concerns without exposing customers and contractors (such as governments) to potential embarrassment.

· Improved knowledge of business ethics and corruption would enable staff to provide a better service to the community.

Potential risks and challenges

· The implementation of this procedure would require moderate financial investment; current staff resources (e.g. ethics officers) would be utilised to develop and implement procedures, but staff would be away from their workplace during training. I believe the benefits of improved confidence and morale will outweigh the financial outlay.

· It would take time for employees to feel comfortable in the reliability of these processes. Staff may also be initially hesitant to act as an informer against colleagues. This can be addressed by involving staff in the consultation process when developing this policy, along with encouraging a cultural change in the organisation over time.

Conclusion

Serco has already taken significant steps to improve our adherence to the principles outlined and, if implemented, these further proposals would enhance existing business practices. By reviewing our human rights performance and providing improved anti-corruption training and access to internal whistleblower processes, we will improve the service provided to our stakeholders and the global community.

References

Kollewe, Julie. 2014. “Serco to continue running Australian immigration detention centres.” The Guardian, December 10.

http://www.theguardian.com/business/2014/dec/10/serco-australian-immigration-detention-centres-contract-christmas-island

Serco Group. 2014. Annual Reports and Accounts 2014.

https://www.serco.com/Images/22000_Serco_AR14_tcm3-46422.pdf

Serco Group. 2014. Our Code of Conduct.

http://codeofconduct.serco.com/Assets/SERCO_CoC_FULL-ONLINE-UK-1109_tcm37-45780.pdf

Serco Group. 2014. Human Rights

http://codeofconduct.serco.com/Assets/01_Factsheet_Human_Rights_tcm37-45103.pdf

Tugwell, Nikki and Investigative Unit ABC News. 2011. "Detention Centre Insiders Issue Suicide Warning." ABC Premium News, May 26. http://search.proquest.com.dbgw.lis.curtin.edu.au/docview/868651798?accountid=10382.

Tugwell, Nikki and Investigative Unit ABC News. 2011. "Government Accused of Hushing Up Detention Breaches; the Government has been Accused of Mismanaging Taxpayer Funds to Cover Up Problems at Australia's Immigration Detention Centres." ABC Premium News, Jun 02. http://search.proquest.com.dbgw.lis.curtin.edu.au/docview/916549891?accountid=10382.

United Nations. 2015. United Nations Global Compact. Accessed September 29,

https://www.unglobalcompact.org/

United Nations. 2015. The universal Declaration of Human Rights. Accessed October 4, http://www.un.org/en/documents/udhr/

"'We Got it Wrong' Admit Tagging Firms G4S and Serco." 2013. Telegraph.Co.Uk, Nov 20. http://search.proquest.com.dbgw.lis.curtin.edu.au/docview/1459854298?accountid=10382.

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