Integrity Index

The Integrity Index for public organisations is an initiative of the Central Vigilance Commission (CVC)which will be based on bench marking of governance processes by internal and external stakeholders.

The Indian Institute of Management Ahmedabad is undertaking a research-based approach to create an integrity index that various organizations can use to measure themselves and which will evolve with changing needs.

Definition of Integrity

• When there is a congruence among our thoughts, words and actions, the integrity gets manifested.
• Integrity includes but goes beyond honesty. Honesty is telling the truth- in other words, conforming our words to reality. Integrity is conforming reality to our words- in other words, keeping promises and fulfilling expectations
• Integrity is the basis of Trust
• Integrity is the uprightness of character

Integrity in organisational context

• Integrity applies to individuals and organisations
• Integrity of individuals affects the integrity of organisations and vice versa
• Organisations should have processes to promote the culture of integrity, checks and balances to minimise the effect of lack of integrity in individuals
• Organisational culture should discourage deviant behaviour.
• There are two important aspects of Integrity viz.
  • Integrity of Management
  • Management of Integrity.
• Integrity of Management is a prerequisite for Management of Integrity
• Procedures that are legal should also be ethical

Purpose of Integrity Index

The main objective is to define what constitutes integrity of public organisations, identify the different factors of integrity and their inter-linkages and to create an objective and reliable tool that can measure the performance of organisations on this benchmark.

Computation of Integrity Index

1. Integrity Perception -- 10%
   Survey based perception of share holders, customers, stakeholders, vendors and employees
2. Enabling Environment -- 10%
   Code of Conduct, Whistle Blower Policy, Integrity Pact, Right to Information Act, Others
3. Compliance -- 10%
   Audits (Internal, Statutary, CAG), GFR, Greivances, Compliance, Suggestions, Corporate governance
4. Transparency -- 10%
   Automation, Webpage content, Fraud prevention initiatives
5. Performance -- 10%
   Commercial performance, Social Impact
6. Key Process Management -- 50%
   • Standard Processes - 60% of 50%
     Purchase, Capital decision, scrap and asset disposal, HRM: Recruitment, Performance appraisal, Promotion, Transfers
   • Customised Processes - 40% of 50%
     Business Process, the focus in customised processes is to examine effectiveness in decision making

The framework for computing integrity index was developed in a scientific research based approach. It is voluntary for the organizations to undergo the evaluation or not.

The Integrity index for public organisations is computed based on evaluation of operational processes and perception of the same by internal and external stakeholders. Data for evaluation will be submitted online by the respective organizations on a participation basis. Therefore the framework for computing integrity index relies only on primary data, unlike other tools developed elsewhere (Corruption perception index, Transparency International ranking, or Index of Public Integrity).

At the first stage of development, 25 CPSU's, state organizations and ministry have been selected by CVC for supporting IIMA in developing the framework.

Source : CVC