Ethics, Governance, and Compliance
What the exam tests
Ethics, Governance, and Compliance tests the ICMA Code of Ethics, conflict-of-interest rules, open meetings and records, procurement integrity, and the roles of council and manager. Expect scenario questions on gifts, outside employment, political activity, confidentiality, and whistleblowing.
Core rules and concepts
- The ICMA Code of Ethics centers on public trust, representative democracy, dignity and worth of public service, and professional integrity.
- Avoid conflicts of interest and the appearance of conflicts; disclose and recuse when required.
- Gifts should be declined or reported under policy; no gift should influence official action.
- Keep confidential information confidential, including personnel and pending negotiations.
- Political neutrality: do not campaign for candidates or engage in partisan activity that undermines the manager's role.
- Governance: council sets policy, the manager implements; open meetings and public records laws apply.
- Procurement requires competition, documented evaluation, and separation of duties.
Worked example
A developer bidding on a city contract offers the manager two tickets to a charity gala. The manager declines and documents the offer. Reasoning: the bid creates a conflict; even a modest gift can create appearance problems and violate policy. If attendance is legitimate city business, the manager seeks written approval, pays, and discloses.
Traps that cost marks
- Applying a 'no harm done' standard instead of the appearance standard.
- Accepting hospitality from a vendor during an active procurement.
- Discussing personnel matters with a council member outside closed session.
- Using confidential information for a friend's benefit.
- Treating ethics as legal compliance only.