1. CORRUPTION
A corrosive drain on
organizations
Bradwell Mhonderwa
BUSINESS ETHICS CENTRE

2. INTRODUCTION
• Corruption, a global challenge
• International conventions on
corruption, UNCAC, UN Global
Compact, TI, etc.
• World bank estimate in 2004

3. DEFINITION of
CORRUPTION
“The abuse of power for private gain”-
Transparency International

4. DEFINITION cont’d
• Corruption applies to all sectors of
the economy
• Systemic and individually based
• Covers both financial and non
financial benefits
• Points to importance of governance
systems in curbing corruption
• Highlights costs of corruption

5. COMPLEXITY OF CORRUPTION
• Corruption has many faces
• Businesses, source and victim
• Rent seeking and state capture
• Systemic and/or individual
corruption

6. SYSTEMIC CORRUPTION
• Most difficult to control
• Rent seeking, state capture, patronage, impunity
• Wining government tenders on the basis of who you
know and paying bribes
• Paying expediting fees for public services
• Erodes investor confidence thus stifling economic
growth
• Results in capital flight
• Destroys institutional capacity
• Impoverishes whole societies
• Weakens rule of law

7. CORRUPTION AROUND THE WORLD
Source: Transparency International, 2013 report

8. CORRUPTION in
SUB-SAHARAN AFRICA
• Somalia, Sudan, Chad, Nigeria and
Zimbabwe
• Botswana, Seychelles, Namibia
• Political elites, bureaucrats, and their
appendages in private sector
• Rent seeking and state capture
• Corrupt public service institutions

9. EFFECTS OF CORRUPTION
IN AFRICA
• Retarded/delayed development
• Stifled economic growth
• Business collapse
• Destruction of institutional capacity
• Endless civil wars inspired by greed
• Poverty, diseases, social unrest
• Environmental degradation

10. ILLEGAL WASTE DUMPING
IN ABIDJAN, 2006

11. COSTS OF CORRUPTION
• Resource misallocation
• Lower investment/capital flight
• Reduced competitiveness, efficiency and
innovation
• Unresponsive policies and poor administration
• Increased unemployment
• Exacerbated poverty , social unrest and corroded
social fabric
• Destroys natural environment

12. FIGHTING CORRUPTION
WHOSE RESPONSIBILITY?
• Government
• Business
• Civil society
• General public

13. FIGHTING CORRUPTION
GLOBAL INITIATIVES
• Global conventions
• Legal frameworks, FPCA in US, Bribery
Act, UK, etc.
• OECD Principles
• Transparency International
• Improving governance

14. FIGHTING CORRUPTION
IN ZIMBABWE
• Anti corruption act
• Anti corruption commission
• Transparency International
• Zimcode

15. FIGHTING CORRUPTION
IN ZIMBABWE: WAY FORWARD
• Commitment at highest level
• Improve public governance and
corporate governance processes
• Ethics foundation of good governance
• Undo culture of impunity and improve
rule of law
• Identify, and punish perpetrators

16. FIGHTING CORRUPTION
CORPORATE MEASURES
• Effective ethics and compliance standards and procedures
• Exercise due diligence in appointing people to key positions
• Effective communication of ethical standards, policies, and
procedures to staff
• Effective monitoring, evaluation and auditing of standards and
procedures
• Consistent enforcement of standards and policies
• Appropriate response to uncovered misdemeanor in order to
prevent repeat.

17. CONCLUSION
Corruption is the albatross stifling economic growth and
development in poor countries. While corruption has
become a world challenge, its effects are more pronounced
in impoverished societies where resources meant for the
poor in most cases end up in the hands of a few mostly
ruling elites, bureaucrats, and their appendages in business.
Fighting corruption demands commitment at the highest
level and involvement of all players in the economy.