Aligning the Ethics of Public-Private Partnership: The Issue of Local Economic Development

This article surveys the ethical terrain of public-private partnerships that can affect public policy at the local level. Amidst the resonance of the current appeal to reinvent government, there are indications that ethics may be an afterthought among arguments that local jurisdictions should become more enterprising and catalytic. A case study included herein invites ethical scrutiny of a partnership between a county government and a local chamber of commerce from two perspectives-one of personal moral standards and the other of policy ethics. As the twentieth century nears conclusion, an increasingly skeptical public has called upon government at all levels both to improve the ethical conduct of operations and to increase reliance on private sector entities as partners in the delivery of public services. In terms of the latter, the prospect of reinventing government-particularly by selecting from a variety of publicprivate program arrangements-has struck a resounding chord among an attentive citizenry and the current national administration. Such partnerships would presumably enable governments to make intelligent policy choices at a broader policy level or as Osborne and Gaebler, quoting from Savas (1987, 290), put it, to adopt a catalytic capacity to "steer rather than row" (1993; see also Luke et al. 1988, 225-40). At present (mid-1990s), the ethical terrain of government power-sharing remains for the most part uncharted. Granted, recent prescriptions for problems encountered in federal contracting do grapple with some ethical considerations. Specifically, Kettl (1993, 179-98) recommends that government as a "smart buyer" needs to guard against conflicts of interest that arise from dependent (or tightly coupled) relationships with contractors, particularly within the contexts of political and technical J-PART 6(1996):4:599-621 599/Journal of Public Administration Research and Theory This content downloaded from 157.55.39.120 on Mon, 05 Sep 2016 05:54:33 UTC All use subject to http://about.jstor.org/terms Conference on Ethics in Public Administration uncertainties. Yet there are indications that ethics may be an afterthought among arguments to reinvent government to assume catalytic roles. While by no means condoning wrongdoing, reinventing government devotees imply advocacy for a benefit/ cost standard in their preference not to roll out the howitzers in reaction to petty ethics abuse (Anechiarico and Jacobs 1994, 471). Thus, at the dawn of the twenty-first century, scholars of government ethics may find it worthwhile to survey the contours of shared-power arrangements relating to both contractual and voluntary partnerships. A good deal of government ethics research focuses on linkages among ethical climate, control, and organization efficiency (or effectiveness). As a case in point, Menzel (1993, 191-204) probes whether efforts toward maintaining ethical climates in local governmental settings reinforce or detract from goal attainment. (He finds support for the former.) Yet with regard to a public development purpose, it can be unclear how one should conceptualize ethics and efficiency/effectiveness or whether it is possible to differentiate between them. Conceivably, factors leading to success in public development efforts largely fall outside the agency's control. Since effectiveness, if achieved, would offer far-reaching long-term benefits, ethical considerations cannot easily overlook ends or intentions. Paradoxically, governmental controls to enforce ethical standards in partnership situations could strain working relationships with nongovernmental actors. The case presented below challenges the reader to evaluate a partnership between a county government and a chamber of commerce from two ethical perspectives: that of personal moral standards and of what Jeffrey Luke calls a policy ethic (1991). While it portrays some patently unethical behaviors, the case also raises implicit but important questions about whether public officials can be effective in interfacing with powerful market actors in pursuit of a public areawide development purpose without taking on the appearance of impropriety. ETHICS AND PUBLIC DEVELOPMENT EFFORTS From a governmental ethics perspective, the issues associated with the public development function appear both multifaceted and complex. This by no means impugns those public administrators or elected officials who have devoted their efforts (perhaps entire careers) to improving the economic climate of their jurisdictions. Instead, ethical concerns seem intertwined between free enterprise activities and public accountability standards and between individual behavior and collective efforts 600/J-PART, October 1996 This content downloaded from 157.55.39.120 on Mon, 05 Sep 2016 05:54:33 UTC All use subject to http://about.jstor.org/terms Conference on Ethics in Public Administration (involving both public and private actors) toward a broad public purpose. As Bellone and Goerl (1992) suggest, public administrators who address economic development concerns confront a fundamental problem "in reconciling public entrepreneurism and democracy." Yet from an ethical standpoint, this managerial challenge is even more daunting since traditional standards that govern the moral actions of individual administrators and elected officials at times appear at cross purposes with broader policy obligations, such as those to achieve social justice or to advocate for future generations. Therefore, it is useful to follow Luke's (1991) orientation toward administrative leadership that, while reaffirming the importance of an individualist managerial ethic (discussed first below), also speaks to the need for managers to embrace a policy ethic that acknowledges the interconnectedness and long-term ramifications of complex public undertakings such as economic development.