In an environment of increasing scrutiny, public expectation and regulatory oversight, organisations must demonstrate ethics, integrity and transparency in all decision-making.
Probity is a cornerstone of good governance and risk management, particularly where discretion is exercised. For organisations across sectors, particularly those managing public resources or delivering critical services, probity is essential not only to avoid misconduct but to maintain trust, credibility and legitimacy.
What Is Probity?
Probity refers to the demonstration of honesty, integrity, impartiality and transparency in processes involving discretion or judgement. It ensures that decisions are made without favouritism, bias or conflicts of interest and that they can withstand external scrutiny.
Unlike compliance, which is about meeting minimum legal or policy obligations, probity is about doing the right thing, when no one is watching and being able to demonstrate it.
Why Is Probity Important?
Organisations rely on discretion to make complex decisions. Whether procurement of goods or services, awarding contracts, allocating funds or hiring staff, the potential for actual, potential or perceived bias can expose organisations to reputational, legal and financial risks.
Probity strengthens governance in the following ways:
- Promotes Ethical Decision-Making:
Embeds integrity into organisational culture and decision-making - Builds Public and Stakeholder Confidence:
Demonstrates transparency, fairness and accountability - Minimises Risk:
Reduces exposure to corruption, nepotism, legal disputes and reputational harm - Ensures Defensible Outcomes:
Helps organisations stand up to internal and external challenge
Where Can Probity Advice and Auditing Be Applied?
While often associated with procurement, probity principles apply across a wide range of discretionary functions within organisations. These are areas where decisions involve judgment, prioritisation or subjective evaluation, including:
1. Procurement and Tender Evaluation – Discretion is routinely exercised in supplier shortlisting, contract negotiations, and bid evaluation. Probity support ensures transparency, confidentiality and equal treatment of bidders throughout the procurement lifecycle.
2. Contract Variations and Extensions – Even after contracts are awarded, further discretionary decisions—such as variations, scope changes or extensions—must be managed transparently to avoid perceptions of bias or preferential treatment.
3. Sponsorship, Grants and Funding Programs – Decisions on who receives funding and how much is inherently discretionary. Probity processes help ensure the fair application of eligibility criteria, impartial assessments and clear records of decision-making.
4. Recruitment and Selection – Particularly for executive, board or high-profile roles, probity oversight ensures that appointments are based on merit. Conflicts of interest are managed and the recruitment process is free from undue influence.
5. Governance and Board-Level Decisions – Boards and executive committees exercise discretion over investments, divestments, strategic partnerships and significant internal matters. Probity support assists in ensuring these decisions are impartial, transparent and justifiable.
6. Infrastructure and Capital Projects – Large-scale construction, IT transformation or asset acquisition projects often involve multiple evaluation criteria, expert panels and commercial confidentiality. Probity advice ensures fairness in selection, contracting and delivery oversight.
7. Internal Investigations and Disciplinary Matters – Where disciplinary actions or workplace investigations are conducted, discretion is used in assessing evidence, determining outcomes and applying sanctions. Probity helps ensure procedural fairness and independence.
8. Performance Bonuses and Remuneration Decisions – Remuneration decisions—particularly discretionary bonuses—require objective justification. Probity support provides assurance that decisions are based on merit and free from bias.
9. Policy and Grant Prioritisation – When determining which policies, projects, or programs receive funding or priority, probity frameworks help validate that resource allocation is aligned with strategic goals and not subject to personal or political influence.
10. Community Engagement and Stakeholder Funding – In areas such as philanthropy, local government grants or community project endorsements, decisions can carry significant public interest and perception risks. Probity helps ensure a fair and justifiable process.
The Role of Probity Advisors and Auditors
Both probity advisors and probity auditors have a role to play to maintain accountable, ethical and transparent decision-making organisations.
- Probity Advisors: Provide real-time, independent guidance on process design, risk identification, decision recording and the handling of conflicts of interest. Engaged early, they help incorporate probity in the process from the beginning.
- Probity Auditors: Conduct independent reviews of decisions or processes after the decision is made to confirm probity standards were upheld. Their reports can be used to defend decisions, support governance assurance or meet regulatory obligations.
Both roles are critical where the consequences of a contested or flawed decision are significant—be it financial, legal or reputational.
Embedding a Culture of Probity
For probity to be meaningful, it must be part of an organisation’s DNA. The fabric of the organisation. It’s a framework that enables better decisions and protects the people who make them.
This means:
- Embedding probity into governance frameworks, plans, policies and procedures
- Developing and delivering regular training and awareness programs which highlight current and emerging probity risks in the sector or industry
- Having a Statement of Business Ethics which sends a message to stakeholders the high ethical standards the organisation expects internally and externally
- Encouraging a culture of ethical leadership and role modelling from those charged with governance
- Clearly, comprehensively and transparently documenting all decisions involving discretion
- Engaging probity advisors proactively in all key discretionary processes
- Engaging probity auditors to provide assurance over discretionary functions and to use the improvement opportunities as lessons learned for future processes
- Declaring and managing conflicts of interest openly and within risk appetite
- Declaring and managing gifts, benefits and hospitality to ensure that they are not accepted where it is not appropriate and are not influencing decision making
Probity is about protecting not just an individual process, but the integrity of the organisation.
In a world of increasing complexity and scrutiny, organisations that invest in probity advice and auditing send a clear message that they are committed to fair, ethical and accountable decision-making.
Moore Australia help organisations strengthen their decision-making through comprehensive frameworks, policy and procedures, expert probity advice and independent probity auditing. When transparent, accountable and ethical decision making is required make integrity your strongest defence.
Please contact your Moore Australia Governance and Risk Advisory specialist to discuss your probity needs.
