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VISION INTERNATIONAL UNIVERSITY,
CALIFORNIA UNITED STATE OF AMERICA
AFFILIATED WITH GRACE THEOLOGICAL
AND LEADERSHIP UNIVERSITY ADDIS ABABA
ETHIOPIA.
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON
COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY;
CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED
PUBLIC SECTORS.
By
Temesgen Mathewos
January 2023
Addis Ababa, Ethiopia
Analysis the Impact of Leadership Style on
Combating Corruption and Building Ethical Society;
Addis Ababa City Administration in Public Sectors
A Dissertation Proposal Submitted To the School Of Graduate
Studies
Vision University Allied With Grace Leadership and Theological
University
In Partial Fulfilment of the Requirements for the Degree of Doctor of
Philosophy (PhD) In Leadership
BY
TEMESGEN MATHEWOS
Major Advisor: Daniel Temesgen (Professor)
January 2023
Addis Ababa, ETHIOPIA
Table of Contents
Chapter One: Introduction ..........................................................................................................................- 1 -
1. Introduction.........................................................................................................................................- 1 -
1.1 Background.......................................................................................................................................- 1 -
1.2 Statement of problem........................................................................................................................- 4 -
1.3 Rationale of the study .......................................................................................................................- 7 -
1.3 Research Objectives..........................................................................................................................- 8 -
1.3.1 General Objectives.....................................................................................................................- 8 -
1.3.2 Specific Objectives ....................................................................................................................- 8 -
1.3.3 Research Question......................................................................................................................- 8 -
1.4 The Research Hypothesis............................................................................................................- 9 -
1.5 Assumptions the Study .....................................................................................................................- 9 -
1.5 Significance of the Study..........................................................................................................- 10 -
1.5 Scope of the Study ..........................................................................................................................- 11 -
1.6 Definitions of Key Terms ...............................................................................................................- 12 -
Chapter Two: Literature review................................................................................................................- 16 -
1. Introduction.......................................................................................................................................- 16 -
2. Review of Leadership styles ............................................................................................................- 17 -
2.1 Basic types of leadership styles ......................................................................................................- 17 -
2.2 Factors of leadership.......................................................................................................................- 22 -
3. Concept of corruption .......................................................................................................................- 25 -
3.1. Causesof Corruption ......................................................................................................................- 27 -
3.2 Effects of Corruption ......................................................................................................................- 29 -
3.3 Methods of Corrupting ...................................................................................................................- 34 -
4. Building Ethical Society ....................................................................................................................- 36 -
4.1 Causes for unethical society ...........................................................................................................- 37 -
4.2 Ethical Leaders to Build Ethical Society...........................................................................................- 39 -
4.3 Building Ethical Society to Combat Corruption...............................................................................- 40 -
4.4 World Experiences in Building Ethical Society................................................................................- 40 -
Chapter Three: Research Methodology ....................................................................................................- 42 -
1. Introduction.......................................................................................................................................- 42 -
2. Research Site and Population............................................................................................................- 43 -
2.1 Research Design..............................................................................................................................- 44 -
2.2 Population and Sampling Techniques.............................................................................................- 45 -
2.2.1 SampleDesign ..........................................................................................................................- 45 -
2.2.2 Sampling Techniques...............................................................................................................- 45 -
2.2.2.2 Sampling Techniques for Qualitative data............................................................................- 45 -
2.2. 3 Sample Size Determination.....................................................................................................- 46 -
3. Data Sources, Types and Collection Method....................................................................................- 48 -
3.1 Data Sources ...................................................................................................................................- 48 -
3.1.1 Primary Data Source................................................................................................................- 48 -
3.1.2 Secondary Data Source............................................................................................................- 48 -
3.2 Data Types ......................................................................................................................................- 49 -
3.2.1 Qualitative Data .......................................................................................................................- 49 -
3.2.2 Quantitative Data .....................................................................................................................- 49 -
3.3 Data Collection Method..................................................................................................................- 50 -
3.3.1 Qualitative Data Collection:.....................................................................................................- 50 -
3.3.2 Quantitative Data Collection:...................................................................................................- 50 -
4. Method of Data Analysis ..................................................................................................................- 52 -
4.1 Econometric analysis ......................................................................................................................- 52 -
4.1.1 Variable Categorizing ..............................................................................................................- 54 -
3.1.2 Checking Heterogeneity, Endogeneity and Multicollinearity..........................................- 55 -
5. Ethical consideration.........................................................................................................................- 56 -
6. Time frame........................................................................................................................................- 56 -
7. Budgeting line...................................................................................................................................- 58 -
8. References.........................................................................................................................................- 59 -
Appendixes ...............................................................................................................................................- 66 -
List of tables
Table 2 Sample size category................................................................................................................... - 47 -
Table 3Top 20 Most (and Least) Corrupt Countries in Africa, 2023....................................................... - 66 -
Table 4Top 30 Least Corrupt Countries in Africa, 2023 ..............................................................................68
List of Figures
Figure 1 Factors affecting leadership....................................................................................................... - 22 -
List of Equation
Equation 1 Klitgaard corruption formula. C = R + D – A ....................................................................... - 25 -
Equation 2 Equation for sample size....................................................................................................... - 46 -
Equation 3 the econometric formula for Corruption................................................................................ - 52 -
- 1 -
Chapter One: Introduction
1. Introduction
Ethiopian political, economical, social, human rights and economical aspects and specifically
peace and stability at urban area, are not changing relative to world growth. This study will look
for possible correlations between leadership styles, combating corruption rate and changing
society’s values. It will begin with background information on leadership, leadership Styles and
corruption combating techniques. Statements of the problem, purposes of the research, followed
by delimitations, limitations, and a conclusion will comprise this chapter.
1.1 Background
We live in a world in which individuals, organizations, countries, and societies are increasingly
connected. Therefore, the impact of leadership—both good and bad—reverberates throughout
entire political and economic systems. Greater connection equals greater influence, and this has
changed the nature of leadership. Leaders have influence beyond their organizations, increasing
the interconnection between ethics and leadership. Leadership happens among people and usually
involves the use of influence to attain goals (Barlow et al., 2003, cited by John Kwaku).
Influencing people implies that the relationship between a leader and his people is not passive.
Furthermore, influence has been exerted to attain some specific end or goal. Therefore, when
Fairhurt (2007) defines leadership as the ability to influence people towards the achievement of
goals, he captures the idea that leaders must be involved with other people in the attainment of
results or goals.
A leadership style determines how leaders implement plans and strategies to accomplish given
objectives while accounting for stakeholder expectations and the wellbeing and soundness of their
team. Leadership matters because the style adopted by any leader is usually a combination of their
personality, life experiences, level of emotional intelligence, family dynamics, and way of
thinking. Thus, leaders should be able to understand their leadership style in relation to the
combination of traits listed above and determine how they can be more effective. Similarly, more
studies (Othman, 2013) have affirmed that there is a relationship between leadership style and
organizational outcomes. Krishnan (2000) studied leadership style and ethical climate and found
that leadership style has a significant influence on corporations.
Corruption is another key concept considered in this study. Corruption affects every society and
appears in multiple forms, such as electoral fraud, illegal voter manipulation, influence peddling,
patronage, nepotism, embezzlement, and kickbacks. Corruption is a complex phenomenon
without a uniform definition. An overview of the different forms and definitions of corruption, as
well as its harmful effects across the globe, is available. It is important to distinguish three main
types of political systems or leadership styles: democratic, hybrid, and authoritarian. While these
categories are by no means exhaustive, they provide a helpful framework for discussing the causes
and effects of corruption in different political structures. Corruption can manifest itself differently
depending on the leadership style or political system.
While corruption affects all societies, scholars argue that the public's acceptance of corruption
varies across societies and contexts (Heidenheiment and Johnston, 2002; Kubbe and Engelbet,
2018). This implies that what is considered a bribe in one country might be considered a gift in
another. Even corruption and conflict feed each other and threaten durable peace. On the one
hand, conflict creates a breeding ground for corruption. Political instability, increased pressure on
resources, and weakened oversight bodies create opportunities for crimes such as bribery and
embezzlement. Corruption is also a threat to global security, and countries with high CPI scores
play a role in this. For decades, they have welcomed dirty money from abroad, allowing
kleptocrats to increase their wealth, power, and geopolitical ambitions. The catastrophic
consequences of the advanced economies’ complicity in transnational corruption became
painfully clear following Russia’s full-scale invasion of Ukraine. The Top 11 Most Corrupt
Countries in the World (2020 Corruption Perceptions Index): South Sudan, Somalia,Somalia
,Syria Venezuela,Afghanistan,Korea,Yemen, Equatorial Guinea, Libya, Burundi, and the
Democratic Republic of the Congo
Although Somalia has been ranked as the most corrupt country in the world for successive years,
the country has been making incremental improvements, scoring 9 in 2019, 12 in 2020, and 13 in
2021. Moving in the other direction is South Sudan, whose score drops from 12 in 2020 to 11 in
2021. Corruption is almost universal across the planet but varies widely in severity, type, and
consequences. Although corruption is not unique to Africa, African corruption remains pervasive
and among the world’s most severe (Lawson, 2009). For example, data from Transparency
International (about which more later) indicate that six African countries are rated as “extremely
corrupt” (scores under 20) and another 35 are considered “very corrupt” (scores 20–39); only
Botswana emerges as a member of the “slightly corrupt” group, and no African country is among
the “least corrupt” group, which includes most of the economically advanced world. Ninety
percent of Africa’s population—roughly one billion people out of 1.2 billion—lives under very or
extremely corrupt governments, a rate that exceeds most of the rest of the world.
Ethiopia is the 94th least corrupt nation out of 180 countries, according to the 2022 Corruption
Perceptions Index reported by Transparency International. There are high levels of corruption in
Ethiopia, although they are less high than in comparable regional countries. Examples of
corruption include business corruption, judiciary corruption, police, public services, land
administration, tax administration, custom administration, procurement, natural resources and
othersAccording to a World Bank study conducted in Ethiopia, corruption is the second-most
challenging problem that all households face after poverty (World Bank, 2005). According to
Tesfaye (2007), during the previous regimes (Imperial and Dergue), corruption is said to have
resulted in undermining the legitimacy of the governments and weakening their structures,
reducing productivity, hindering development, marginalizing the poor, worsening poverty,
creating social unrest, and speeding up their downfall. Even though corruption is one of the
biggest issues and impediments to good governance and sustainable development worldwide, it is
more common in developing countries than in developed ones. Ethiopia is one of the developing
countries where the prevalence of corruption has been uncontrolled (Selamu, 2010). They turned
the red line we put in place for corruption into a red carpet, and theft is now being considered a
right (PM Abiy Ahmed, 2022).
Addis Ababa: Corruption has become a daily inescapable challenge in Ethiopia to the extent that
people are deprived of their rights to basic public services that they are legally entitled to. It has
not only been impacting the daily lives of people, but it has also become an additional bottleneck
in the already deteriorating economy. The 2021 corruption perception index published by
Transparency International ranked Ethiopia 39th on a scale of zero to 100 (where zero is highly
corrupted and 100 is very clean). According to the category in the index, Ethiopia is one of the
countries exploited by corruption. Therefore, the researcher will find which empirical evidence
and leadership style’s impact on combating corruption and strategies are settled or will be settled
to mitigate at the society level.
1.2 Statement of problem
The whole world has realized and recognized in its belief that the terror of corruption in its
various manifestations is the biggest obstacle to all attempts at progress and the main undermining
of all pillars of development, which makes the effects and dangers of corruption more deadly and
influential than any other defect, as its destructive role is not limited to some aspects of life
without others but extends to various aspects of economic, It is believed (Skoryk (2020); Popova
and Surikhin (2021)) that corruption is the main cause and motivator of the collapse of the social
fabric and the spread of hatred between classes and groups of society as a result of injustice,
equality, and equal opportunities, in addition to the direct and indirect impact of the economic and
political repercussions of corruption on the stability of security conditions and social peace. From
that point, just as leadership is influential on an organizational level in terms of performance and
productivity, it must also be influential in terms of awareness and understanding of corruption and
its destructive outcomes, and that's what the current study seeks to reach (Viant, 2020). As an
emerging phenomenon in organizational leadership studies, corruption is multi-dimensional due to
its systemic, pervasive, and endemic nature. The problem of curbing corruption has concerned
philosophers, social scientists, and policymakers since Aristotle.
According to a World Bank study conducted in Ethiopia, corruption is the second-most
challenging problem that all households face after poverty (World Bank, 2005). According to
Tesfaye (2007), during the previous regimes (Imperial and Dergue), corruption is said to have
resulted in undermining the legitimacy of the governments and weakening their structures,
reducing productivity, hindering development, marginalizing the poor, worsening poverty,
creating social unrest, and speeding up their downfall. Even though corruption is one of the
biggest issues and impediments to good governance and sustainable development worldwide, it is
more common in developing countries than in developed ones. Ethiopia is one of the developing
countries where the prevalence of corruption has been uncontrolled (Selamu, 2010).
After the current government, the Ethiopian People’s Revolutionary Democratic Front (EPRDF),
came into power, different measures were taken to control the persistence and further escalation of
corruption in the country. The Federal Ethics and Anti-Corruption Commission (FEACC) was
established in May 2001 as part of the measures taken by the Ethiopian government to combat
corruption through investigation, prosecution, and prevention (FEACC, Proclamation 235/2001).
Despite the establishment of FEACC and all other efforts exerted by the government, the problem
of corruption remains in the country.
Even though there are few recent studies on corruption in Ethiopia, it is evident that corruption is
a significant problem in the country, although it appears that it is not as rampant as it is in other
countries in the region (World Bank 2012). Some anecdotal evidence suggests a widespread belief
that, in recent years, the extent and sophistication of corruption have grown at an alarming rate.
However, further research is needed to verify this perception. On behalf of the state-run
broadcaster, the mayor of Addis Ababa, Adanech Abebi, revealed the involvement of city
administration employees in various forms of corruption. She said, “We are well aware of the
problems brokers have created at the national level. Apart from regular brokers, government
workers who are supposed to serve the public have been widely involved in the dealership,
considering it the easiest technique to accumulate wealth. The investigation revealed the
involvement of officials in corruption related to land grabbing and issuing identification cards.
The mayor also exposed the challenges from the judiciary organ contradictory to the fight against
corruption in that it ruled in favor of 460 corrupt white collars in the city, which resulted in
contention between the judiciary body and the city administration and despairing the fight against
corruption.
Addis Ababa, November 17, 2022 (ENA) "The government of Ethiopia has established a national
committee to coordinate its anti-corruption campaign," Prime Minister Abiy Ahmed said. The
premier noted in a statement issued regarding the establishment of the committee that corruption
has currently become a threat to the security of the country. This newly established committee
will bring the culprits of corruption before a court of law by distinguishing the actors in addition
to those who have already been identified through study. He stated that “our people have been
suffering from corruption in service delivery, land-related practices, the financial sector, sales and
procurement processes, and the justice system."Citizens have also been facing corruption in
various government institutions, development organizations, and public institutions.” As per the
discussion held with the public, corruption was identified as one of the security threats to the
country that hinders the nation’s path to prosperity, he added.
He also mentioned the efforts being carried out by the government to prevent corruption by
scrutinizing government structures and putting in place new systems supported by technology.
"Efforts have also been made to prosecute government officials and other actors who are engaged
in crimes of corruption," the premier stated.However, the study report revealed that people who
thought the war and COVID-19 that the country encountered had taken the attention of the
government have been engaged in activities to destroy Ethiopia by creating networks.
Hence, the findings of the study and the evaluation of public discussions indicate the need for the
government to undertake a strong and decisive operation on acts of corruption, just like it did on
security matters. On the one hand, the government will work to eliminate laws, regulations,
guidelines, and procedures that are vulnerable to corruption, he said, adding that it will also
intensify its efforts to expose corrupt actors and bring them to justice.
Furthermore, Prime Minister Dr. Abiy indicated that the government is conducting an
investigation into government officials, employees of government institutions, bribe givers, and
bribe takers. However, corruption is carried out in a sophisticated way, using technologies and
sometimes under the cover of the law, he said. The federal, city administration, sub-city, and
district leaders do not follow the same leadership style to stop corruption, and the same
government and party lead the way to identify why the leadership ethics could not be the same or
similar. Various studies have been conducted on corruption, and we see that there are ambitions,
and corrupt people are prosecuted. Findings: This study will be inclusive as the work done on
what the results are and why people do not participate enough in the prevention and suggestion
system is not well defined. It is not possible to suggest which leadership style is best for
preventing and fighting corruption due to the lack of national empirical studies.
Based on what was mentioned above, the current study mainly aims at examining how
administrative leadership traits and characteristics can help combat corruption within selected
public sectors in Addis Ababa administration leadership styles and the Federal Ethics and Anti-
Corruption Commission.
1.3 Rationale of the study
The purpose of this study to explore the correlation between leadership style and corruption ,then
the influence of these styles on the combating corruption and building ethical society and leaders
in city administration, sub cities, districts and at each sectors of Addis Ababa, Ethiopia.
Also, the innermost aim of this study to reveal leadership similarities of city administration with
sub city’s, districts’ and sectors’ leadership styles and commitment and understanding of each
level’s and sectors’ leaders about impact corruption and creating their own mitigating system in
their administration and office. Hence, the purpose of this study is to assess leadership styles to
combating corruption and building corruption fighter society in City administration of Addis
Ababa.The qualitative approach offered leadership styles the influence of these styles in complex
issues like changing human behaviour to become ethical ( Yera Keita,2019)
1.3 Research Objectives
1.3.1 General Objectives
The general objectives for the research title Analysis of the impact of leadership style on
combating corruption and mitigating policy in public sectors a study of selected public sectors in
Addis Ababa city administration
1.3.2 Specific Objectives
In order to attain the impact of leadership style on combating corruption and building Ethical
society in selected public sectors of Addis Ababa city administration, the following specific
objective are putted to:
1. Investigate the leadership style implementing by the administrators in the selected public
organizations in Addis Ababa City Administration.
2. Examine the impact of leadership style on the effectiveness of corruption prevention and
combating implementation in the selected public organizations under study.
3. Identify the challenges faced by leaders in the selected public organizations while
combating corruption in Addis Ababa City Administration.
1.3.3 Research Question
Bearing in mind the research objectives, the following research questions will have guided.
1. What are the different leadership styles utilized by administrators in the selected public
organizations under study to combat corruption and mitigate policy in Addis Ababa City
Administration?
2. How does the leadership style adopted by administrators influence the effectiveness of
corruption prevention and policy implementation in the selected public organizations under
study?
3. What are the challenges faced by leaders in the selected public organizations while combating
corruption and building ethical society in Addis Ababa City Administration?
1.4The Research Hypothesis
H1: The leadership styles adopted by administrators in selected public organizations in the Addis
Ababa City Administration have a significant impact on their ability to combat corruption and
mitigate policy.
H2: There is a significant relationship between the leadership styles of administrators in selected
public organizations and the effectiveness of corruption prevention and policy implementation.
H3: Leaders in selected public organizations face significant challenges while combating
corruption, such as a lack of resources, political pressure, and resistance to change.
H4: The identification of effective leadership styles in selected public organizations in Addis
Ababa City Administration will lead to recommendations for adopting appropriate leadership
styles for combating corruption and mitigating policy in public organizations.
1.5 Assumptions the Study
Assumptions are statements that are considered to be true but have not yet been proven by
evidence or research. Here are some possible assumptions related to the research objectives:
Assumption 1: Assumption regarding the first objective: Administrators in public organizations
play a crucial role in combating corruption and mitigating policy, and their leadership styles can
significantly affect the organization's ability to achieve these goals.
Assumption 2: Assumption regarding the second objective: Different leadership styles affect the
level of effectiveness in corruption prevention and policy implementation in public organizations,
and this relationship can be measured through data analysis.
Assumption 3: Assumption regarding the third objective: The challenges faced by leaders in
public organizations in combating corruption and mitigating policy in Addis Ababa City
Administration can vary depending on their leadership style and can be identified through
quantitative and qualitative analysis of data
1.5Significance of the Study
In view of the fact that Corruption in the public sector can cause serious damage like undermining
public trust in government, desecrating public or government resources and money, causing
injustice advantaging some at the expense of others, inefficiencies in plan or operation, affect
national security through internal and external conflict, reputational damage which makes it
difficult to recruit and retain best value in tender process. It makes also more difficult to attract
investment. Adversely affecting prosperity. So combating corruption significant to bring holistic
prosperity and national stability.
This study is of great substance especially to all body whose credit includes that of lessening of
corruption. Below is the way it will serve as per different sort:
The government/A.A City administration: To end up internal and external conflicts; To achieve
national and embraced change; The responsibility given by the people to serve the people well and
to answer the people's democratic and economic questions, as well as to bring stable politics and
good foreign relations to ensure the security of the country in a better way.
Ethics and Anti corruption sector: since it somehow monitors and evaluates all governmental
institution whose attribution include that of preventing and/or fighting against corruption therefore
this will reveal gaps that needed to be overcome.
Other researchers: universities, institutions, other related organizations and scholars who are
interested in research in this area will also find this study useful for consultation. This study will
be beneficial to other researchers by providing necessary knowledge and information to be used as
a basis for further research about the anti corruption or leadership styles related studies.
Global Society: Various international communities, especially East Africa Community (EAC),
African union (AU) and the United Nation (UN), in addition civil society organization shall also
much benefit from this study since it shall know how the policy in this matter is being challenged
in its setting or implementation.
Political party/ies: Popular with the public by understanding the current situation and putting
solutions to problems. It helps them to become competitive governance from other historical
politics and competing political parties.
The citizens: taking in consideration that the citizens are the very first victims of the bad
governance resulting from the failure of corruption control, and then they should much more
benefit from this research so as to know the right they deserve.
1.5 Scope of the Study
Effects of corruption are different in diverse situations like in national security, democracy, good
governance, economy and social issues which lead to failure to achieve faire public administration
based on leadership styles. However this study is reach only definite public administrative
organizations by emphasizing leadership style in combating corruption and changing society’s
attitude as a long run and it will put up with in a period of three or two leadership styles or
regimes concerned site is a city administration of Addis Ababa, plus organizations with leadership
and corruption struggle in their attribution.
1.6 Definitions of Key Terms
The key terms that are most frequently used in this study are defined below. Such as: city
administration, leadership, monopoly, discretionary power, transparency, perception, public
sectors, governance, and policies for reducing corruption.
Leadership is the capacity to persuade others to voluntarily follow one's instructions or adhere to
one's decisions. " (Leslie Dan Lloyd, 1995). According to John et al., "leadership is the capacity to
influence others to actively pursue defined objectives.". 1987) . "Leadership is the capacity to
influence, inspire, and direct others to achieve desired objectives" (Don dan John 1992). Influence
is all that is necessary to lead, according to John C. Maxwel). The attempt to influence, guide,
motivate, and inspire others to achieve the objectives of the organization or group can be
concluded from the various definitions of leadership offered by some experts.
Leadership Styles: When directing, inspiring, and managing others, a leader's methods and
behaviors are referred to as their leadership style. The way a person strategizes and executes plans
while taking into account the expectations of stakeholders and the well-being of their team
depends on their leadership style. Knowing your leadership style enables you to give employees
the proper direction and feedback while also better understanding your own thoughts, decision-
making processes, and potential business decision-making strategies.
It also refers to the behavioural strategy used by leaders to sway, inspire, and guide their
followers. A leader's leadership style determines how they carry out their plans and strategies to
achieve specific goals while taking into account the needs and expectations of their team as well
as the expectations of their stakeholders. Additionally, it can help you comprehend how your
direct reports see you and the reasons behind any particular feedback they may give.
As they are frequently linked to the English words corruption is "destroy" or "destruction," the
Latin words "corrupti" and "corrumpere" are even more eloquent in expressing what this
transformational process of decay signifies. Destructive decay is what is meant by the term
"corruption" in its most fundamental sense. Although there isn't a single, accepted definition of
corruption, many experts in the field use Transparency International's, which is defined as "the
abuse of entrusted power for private gain.". A person "promises, offers, or gives" undue benefits
to a public official "in order that the public official act or refrain from acting in the performance of
his or her official duties" is considered to have engaged in the criminal act of corruption under
international law. If a public official solicits or accepts such an unfair advantage, corruption is
also committed. It is the act of infringing upon the laws of political, economic, social, and
diplomatic interests in order to bring about conflict between individuals, groups, institutions,
administrations, and nations. According to Farida (2006), corruption is derived from the Latin
word "corrumpere," which means to break something. When corruption occurs, the law, a legal
rule, a moral standard, and in the worst cases, communities and human personalities, are all
broken.
Its origins are in the Latin word "corrupter," which means to break something. When corruption
occurs, the law, a legal rule, a moral standard, and in the worst cases, communities and human
personalities, are all broken (Farida, 2006).
According to the World Bank (1993), governance refers to the political means by which a nation's
economic and social resources are managed for development. Also described as involving
interaction between formal institutions and those in civil societies by Diedhiou (2007). It refers to
a procedure whereby those in political positions use their influence and authority to shape policies
and choices affecting public life and social improvement. Therefore, governance is much more
than just a regime or a state; it also refers to the practice of good government. The biggest and
most pressing issue that African nations are currently facing is government failure. Instead of
serving the people, leadership positions in Africa have frequently been used to manipulate the
populace and take resources from the nations. Because they are unable to provide public services
for the benefit of the populace, most African governments' legitimacy has been questioned. A
cycle of corruption and groupthink has been enacted as a result of administrative abuse of power.
Government has been reduced to party politics, and officials only care about their fellow party
members at the expense of ignoring or undermining the fundamental needs of the populace. Public
employment has therefore increased in value and appeal. Groups compete for the opportunity to
be in power, and those who already hold it tenaciously uphold it even at the expense of peace and
national development.
Accountability: The idea that those who carry out crimes against humanity should be made to
answer for their deeds, either by the nation in which they took place or by the international
community. Political accountability refers to the duty or obligation of the government to act in the
interests of society.
Legal accountability refers to the procedures for holding public officials accountable for deeds
that are against accepted norms and values. In line with Anas Lamin's (2020) assertion,
accountability is a crucial component of any political organization, especially in the eyes of the
electorate. Citizens have a right to know what their government is doing and what actions have
been taken with them as the intended beneficiaries.
Government monopolies, also known as public monopolies or government monopolies, are a type
of coercive monopoly in the economics world where one government agency or government
corporation serves as the sole supplier of a specific good or service and where competition is
illegal. It occurs when one business and its product control an entire sector, resulting in little to no
competition and requiring customers to only buy the particular product or service from the one
business.
Transparency: Making information about government financial and decision-making practices
visible or accessible so that interested parties can both access and influence those processes. With
better resource allocation, increased efficiency, and better overall prospects for economic growth,
transparency is regarded as a crucial component of accountable governance. Who, why, what,
how, and how much are the key questions. It entails putting formal and informal rules, plans,
processes, and behaviours into the open. It enables the public to hold all authorities accountable
for the common good. Information seeking and receiving is a human right that can protect against
corruption and boost confidence in public officials and institutions. Nevertheless, ensuring that
information is accessible, understandable, and used by citizens is just one aspect of transparency.
A decision that is made by a specific person or group rather than being governed by rules is
referred to as having discretionary power.
Any office of the government where any government activity is carried out is referred to as the
"public sector.".
Public Official: According to international law, a public official is "a person who holds a
legislative, executive, administrative, or judicial office" (whether appointed or elected).
Additionally, it refers to someone who "performs a public function" or renders a public service.
Rule of law: A governing principle according to which all individuals and institutions, both public
and private, as well as the state itself, are subject to laws that are made publicly, equally enforced,
arbitrarily decided, and consistent with international human rights standards. Laws must be
transparently drafted and applied fairly and consistently without bias. All people must also have
access to justice, which includes the freedom to look for and receive redress from both informal
and formal institutions of justice..
Chapter Two: Literature review
This chapter reviews the conceptual definition of leadership styles, leadership theories, leadership
components, hypotheses, the relationship between leadership and corruption, corruption
measurements, corruption indicators, and sources in the context of national government. It also
includes forms of corruption, costs of corruption, and historical leadership-corruption evidences.
1. Introduction
Understanding the drivers of better leadership styles or management is crucial to developing
policies that can improve the quality of administration practices and, in turn, raise a country’s
productivity. Their leadership style also determines how leaders develop their strategy, implement
plans, and respond to changes while managing stakeholders’ expectations and their team’s well-
being. Leadership has a direct cause-and-effect relationship with organizations and their success.
Leaders determine values, culture, tolerance for change, and employee motivation. They form
institutional strategies, including their implementation and effectiveness. Leadership style affects
nations and organizations by affecting morale, productivity, speed of decision-making, and
employee metrics.
Corruption exists in all societies, and some would argue that you could minimize it but never
eliminate it. Despite this, a democratic system of government has some built-in mechanisms that
keep corruption in check. Democracy is defined by USIP as “a state or community in which all
members of society partake in a free and fair electoral process that determines government
leadership, have access to power through their representatives, and enjoy universally recognized
freedoms and liberties.” It is generally accepted that strong democracies have lower levels of
corruption, largely because those who are ruled give the government legitimacy to govern, and
therefore the citizens can hold the government to greater transparency in its operations.
However, even when a state has free and fair elections and calls itself a democracy, it may still be
emerging from conflict, transitioning from authoritarian rule, or guided by loyalties to one’s own
clan, tribe, or interest group. A state may also have a political culture that lends itself to corrupt
practices. “When authoritarian control is challenged and destroyed through economic
liberalization and political democratization but not yet replaced by democratic checks and
balances and legitimate and accountable institutions, the level of corruption will increase and
reach a peak before it is reduced with increasing levels of democracy.
2. Review of Leadership styles
2.1 Basic types of leadership styles
Choosing a leadership style that works for you can make you a more effective leader. Whether
you manage a large or small team, your leadership style heavily impacts how your team sees you.
Here are a few points that can help you get started.
Transformational leadership
Leaders who adopt this approach strive to inspire their followers to achieve more than they ever
thought possible by tapping into their potential. This type of leadership can be highly effective in
organizations looking to make significant changes or transformations.
Some of the key characteristics of transformational leadership include: A focus on the future:
Transformational leaders always look ahead and think about what needs to be done to achieve the
organization’s goals. They inspire their followers to do the same. A focus on change:
Transformational leaders are comfortable with change and understand it is necessary for
organizational success. They work to ensure their followers are comfortable with change and can
adapt to it.
A focus on people: Transformational leaders see the potential in every one of their followers.
They strive to develop their followers’ individual strengths and abilities so that they can reach
their full potential. Transformational leaders are able to inspire their followers to achieve more
than they ever thought possible by tapping into their individual potential. They focus on the future
and work to ensure that their followers are comfortable with change.
Additionally, they see the potential in each and every one of their followers and strive to develop
their individual strengths and abilities. This approach can be extremely effective in organizations
that are looking to make major changes or transformations..
Transactional Leadership
Transactional leadership, often referred to as managerial leadership, is a leadership style that relies
on rewards and punishments. This leadership style clearly emphasizes structure, assuming
individuals may not possess the motivation needed to complete their tasks.
With this reward-based system, a leader sets clear team goals or tasks. Leaders also clarify how
their teams will be rewarded (or punished) for their work. Rewards can take many formats but
typically involve financial recompenses, such as pay or a bonus. This “give and take” leadership
style is more concerned with efficiently following established routines and procedures than
making transformational organizational changes.
Transactional leadership establishes roles and responsibilities for each employee. However, it can
lead to diminishing returns if employees are always aware of how much their effort is worth.
Therefore, incentives must be consistent with company goals and supported by additional gestures
of appreciation.
Participative Leadership
Sometimes referred to as democratic leadership, participative leadership is a leadership style that
encourages leaders to listen to their employees and involve them in the decision-making
process. This leadership style requires leaders to be inclusive, utilize good communication skills,
and, crucially, be able to share power/responsibility.
When a leader adopts a participative leadership style, this encourages collaboration through
accountability. This often leads to a collective effort of a team to identify problems and develop
solutions instead of assigning individual blame. This leadership style has historically been
prevalent and utilized by many leaders in many organizations.
Spontaneous, open, and candid communication is often associated with a participative
leadership style. Remote working or virtual teams can make this particularly challenging to
maintain. Participative leadership is often favoured as it helps to build trust with
employees. Empowering them and encouraging them to share their ideas on essential matters,
demonstrating their value to a team
Servant Leadership
Servant leadership is a leadership style that puts the needs of others first. It emphasizes creating
strong relationships with those around you and focuses on enabling them to reach their full
potential. As a leader, it requires focusing on understanding the people you are working with and
developing their abilities, while also setting a good example and understanding their personal
goals. At its core, servant leadership is about ethical decision making; if one follows this model
they will be more likely to make decisions based on what is right for everyone involved, rather
than just benefitting a select few. This approach fosters an environment where creativity and
problem-solving thrive as team members feel empowered to suggest new solutions and build upon
each other’s ideas.
Furthermore, following the principles of servant leadership can result in improved communication
between all involved parties – from senior management to front-line employees. By taking into
account the opinions of subordinates, leaders can prevent any potential conflicts while
maintaining both healthy relationships and peaceful work environments. Ultimately, these
qualities help create a stronger sense of loyalty amongst team members which consequently leads
to increased productivity overall.
Democratic Leadership
This Style is also known as participative. Leaders with participative leadership style, include one
or more of their subordinates in the decision making process, such as what exactly needs to be
done. However these leaders keep the final decision making authority to themselves. This is a
good way of increasing employee’s motivation and if used properly always have positive effects
on the normal business of the organization. This style is best where the leader knows only about a
part of the problem needs further information in order to decide the how to solve it. In this style
also leader produce high quality and high quantity work for long period of time as well staffs likes
the trust they get and respond with faithfulness and high morale. The leader develops plans to help
staff evaluate their own performance. This style gives permissions to establish goals, encourages
growing on the jobs and promotions, recognizes and encourages to achievement among the
employees. This style should be used when leaders wants to keep staff informed about matters
which affect them and wants to share decision making and problem solving by staff. And should
not be used when there is not enough time to get everyone’s input also when cannot afford
mistakes and the staff safety is critically concerned.
Delegative Leadership
Often referred to as “laissez-faire,” a delegative leadership style focuses on delegating initiative
to team members. This is generally known as one of the least intrusive forms of leadership; this
translates to “let them do.” This is therefore considered a very hand-off leadership style. Leaders
who adopt this style have trust and rely on their employees to do their jobs. They don’t
micromanage or get too involved in providing feedback or guidance. Instead, delegative leaders
allow employees to utilize their creativity, resources, and experience to help them meet their
goals.
Coaching Leadership style
Leaders focus on helping other staff in developing their skills and abilities. The coaching leader
works closely with the other staff in order to make sure that they have all the required skills to
carry out the job. This style is best where all the people already understand their weaknesses and
are receptive to all the ideas for improvement.
Affinitive Leadership style
This style is most effective in boosting the team moral and motivation, by giving the employees a
sense of recognition and affiliation in the process of decision making. This is almost same as the
democratic style of management but relies more on praising and appreciating the hardworking
staff; unfortunately, poor performance may also goes without reprimand.
Coercive Leadership style
This style of leadership is based in the concept of command and control where the leader
commands and subordinates only follow the orders. This style can be damaging some times as it
causes decrease in the motivational level of the employees. This style is most effective where the
company needs a complete changeover regarding its culture and ways of carrying out business,
and during disasters or dealing with underperforming employees – usually as a last resort.
Autocratic Leadership
Authoritative leaders are often referred to as visionary. Leaders who adopt this style consider
themselves mentors to their followers. Not to be confused with authoritarian leadership,
authoritative leadership emphasizes a “follow me” approach. This way, leaders chart a course and
encourage those around them to follow.
Leaders who display authoritative traits tend to motivate and inspire those around them. They
provide overall direction and provide their teams with guidance, feedback, and motivation. This
promotes a sense of accomplishment or achievement. Also it style relies heavily on getting to
know each team member. This allows a leader to provide guidance and feedback on a more
personalized level, helping individuals to succeed. This means authoritative leaders need to be
able to adapt, particularly as the size of their team grows.
Authoritative leadership is very hands-on, but leaders must be cautious not to micromanage. This
is a tendency with this style, which can be overbearing for team members and create negative
sentiments.
Bureaucratic Leadership
This leadership styles is followed by certain rules or standards which has been set already. In this
style everything is done accordingly to ensure safety and / or accuracy. We can find this style of
leadership where the situation of work is bit dangerous and specific sets of procedures are
compulsory to make sure and safety. The bureaucratic leadership’s best examples in jobs are
construction work. This style is most useful when staff is performing the routine tasks again and
again. Where staff needs to understand particular standards and procedures. In this style some
safety training are conducted and this is commonly followed staff where staff performing tasks
that require handling cash. This style should not be used when employee’s habits cannot be
changed.
2.2 Factors of leadership
According to Rachel Ovuezirie Atomatofa (2020), there are four factors in leadership. As we
know, leadership is a process that involves a relationship, and therefore it cannot exist in isolation.
The leadership has no subsistence if there is no follower(s) and a situation. The relationship
between leadership, followership, and the situational and organizational context within which the
interactions (communication) between leaders and followers occur constitute the leadership
process.
Figure 1 Factors affecting leadership
Leaders:
Hence, leadership is a transactional event that takes place between leader and the led. It affects
both the leader and the led in the process of interaction. It is not a one-way event, but it is an
interactive event.
The fundamental starting point for a leader is to have a good understanding of human nature, such
as needs, emotions, and motivation. The leader must have high levels of self-awareness; build an
honest understanding of who he is, what he knows, and what he can do. Each leader needs to
establish interpersonal relations with members, inspire them, guide them, and help them to march
towards the goals.
Followers
The role of a follower is not a simple one. It does not just mean following directions or blindly
accepting everything a leader says. Good followership is characterized by active participation in
the pursuit of organizational goals. There are five types of followers
Survivors: Right in the middle of the scale, these people are adept at surviving change. They are
able to adapt and conform to the situations around them, whether this means stepping up to take
on an important task or quietly staying in the background.
Sheep: These passive people do not think critically and do not have a strong sense of
responsibility.
Yes People: people are those who will readily act when told what to do but depend heavily on
leaders for guidance. They do not tend to be proactive.
Alienated Followers: These independent critical thinkers are not proactive in their roles. They
can effectively carry out their roles, but there is often an undertone of dissatisfaction that prevents
them from fully embracing their work and contributing to their fullest potential.
Effective Followers: These independent critical thinkers follow through enthusiastically.
Effective followers can succeed without leadership but respond to it well, making them ideal
independent employees who also work well in teams.
Communication
The leader listens closely to people at work, organizes, and clearly presents information both
orally and in writing. Communicate with all personnel with a sense of mutual understanding and
mutual loyalty to the aims of business objectives, Generate enthusiasm for projects, and inspire
working towards their completion. A leader is always contributing to the group by advancing
useful suggestions, tracking progress, providing direction and guidance where necessary.
Leaders demonstrating communication skills are both good speakers and listeners. The leader
listens closely to people at work, organizes, and clearly presents information both orally and in
writing. Through their words, they can help keep the workforce motivated and committed. They
also listen to their followers and ask questions when they want to make sure they have a good
understanding of what is being expressed. Through their leadership skills, they maintain a high
level of performance in their organizations, and they are able to help keep their workforce
motivated even when faced with a seemingly impossible situation. What and how the leader
communicates either positively build or negatively harm the relationship between the leader and
his employees. Good leaders communicate with all personnel with a sense of mutual
understanding and mutual loyalty to generate enthusiasm for projects and inspire working towards
their completion.
Situation
All situations are different. A methodology or approach that is successful in one situation will not
always work in another. The leader must use his judgment to decide the best course of action and
the leadership style needed for each situation. A successful leader is sensitive to the influences in
various situations and they are in a position to determine the right style of leadership to be
followed in handling various situations.
The situational forces that have a bearing on the style of leadership include the style of the leader's
supervisors, complexity and demands of the job, and pressure of time (e.g., emergency or crises
vs. normal). Lastly, the forces in the organization system which determine the style and
effectiveness of the leadership include division of work, organization structure, and the production
technology being adopted by the organization. Therefore, the structure of the organization may
determine the kind of leadership to be adopted.
3. Concept of corruption
Corruption comes from a Latin word ‘corrupter’ which means to break something and during the
action of corruption, the law, legal rule , a moral norm and in worse situations communities and
human personalities are broken (Farida,2006). Alike on Merriam Webster’s Dictionary The noun
corruption comes from Latin - com, meaning "with, together," and rumpere, meaning, "to break."
Engaging in corruption can "break" or destroy someone's trustworthiness and good reputation
with others. Drawing upon the concepts of corruption in calculated formula, a corruption
equation can be set out as follows (Klitgaard 1998):
Equation 1 Klitgaard corruption formula. C= R + D – A
C stands for corruption, R for economic rent, D for discretionary powers, and A for
accountability. The equation states that the more opportunities for economic rent (R) exist in a
country, the larger will be the corruption. Similarly, the greater the discretionary powers (D)
granted to administrators, the greater will be the corruption. However, the more administrators are
accountable (A) for their actions, the less will be the corruption, and hence a minus sign in front
of A.
Economic rent: The concept of economic rent (or monopoly profit) occupies a central place in
the literature on the subject of corruption. Economic rent arises when a person has something
unique or special in his possession. This something special can be a luxury condominium in a
posh neighbourhood, a plot of land in the central business district of the city, a natural resource
like an oil well, or even some pleasing personal traits such as beauty and charm (U Myint2000).
A person who owns such a special asset can charge a more than normal price for its use and earn
economic rent or monopoly profit. Hence, the bureaucrat who has a monopoly of typing, stamping
and processing the letter can use his official position to acquire economic rent from his clients.
Rules and regulations are required to maintain a sense of fair play; to prevent disastrous conflicts;
keep greed, predatory and other unsavoury human instincts in check; minimize socially
undesirable consequences; and generally to ensure that players and referees abide by certain
accepted standards of moral conduct and good behaviour. Naturally, for rules to be properly
observed, they must be transparent, that is, must be set out clearly and made known in advance to
all concerned, so that they can be understood and obeyed by participants in the game.
The game cannot proceed in an orderly way if players are uncertain about what constitutes a foul
for which they will be penalized, or the referee is not sure when to blow the whistle. Aside from
being clear, rules must also be applied in an impartial manner with respect to all players and must
be consistent and not be subject to frequent and arbitrary changes. Obviously, the game will
become unplayable and players will pack up and leave, if rules keep changing as the game
proceeds and the referee keeps blowing his whistle whenever he feels like it.
Discretionary powers: Discretionary powers represent another key concept in discussing
corruption. They arise because it is not possible to devise rules and regulations that are watertight
and foolproof and will take care of all contingencies that can crop up in trying to control or direct
an economic activity. Hence, some flexibility and discretionary powers will have to be given to
administrators in interpreting and implementing rules. Even in a football match, the referee is
granted discretionary powers and has considerable freedom to exercise his good judgment in
reaching decisions such as in awarding a penalty kick or showing a yellow or a red card to an
offending player. These decisions could prove decisive in determining the final outcome of the
game. In short, regardless of how ingenious we are in designing rules and regulations, there must
always be some room for personal judgment and freedom to exercise a measure of discretion on
the part of officials administering and implementing the rules; or else if everything has to be done
“by the book”, general paralysis will set in and the whole administrative machinery will come to a
grinding halt.
Accountability: A few remarks about accountability are necessary as it occupies an important
place in considering the corruption question. Accountability has to do with the fact that for proper
observance of rules and regulations, those administering the rules must be held responsible and
accountable for their actions. For example, it is normal practice in most countries to request
assistance from parents to help finance desirable projects in their children’s school. Usually such
projects are well publicized, and their objectives, benefits, work plan and estimated costs are
explained in detail to parents. Periodic progress reports are provided when the project is under
implementation. When something appears questionable, improper, or inaccurate in the
information and accounts presented, the authorities can be called upon to provide an explanation
to clarify the matter and to take corrective action and make amends, as necessary. Those in charge
are obliged to respond to such queries so that doubts are cleared, and remedial or disciplinary
actions are taken to the satisfaction of all concerned.
3.1. Causesof Corruption
Corruption destroys morale, undermines democracy, represses economic growth, and makes
inequality, poverty, social division, and the environmental problem worse. According to a 2017
survey study, the following factors have been attributed as causes of corruption
Greed of money: A strong desire to obtain wealth or money, often at the expense of ethical, moral,
or legal considerations.
Desires: Cravings or strong wishes to attain or acquire specific things, experiences, or outcomes,
either material or immaterial.
Higher levels of market and political monopolization: A situation where a single entity,
individual, or group has significant control over a market or political process, resulting in
decreased competition, potential for abuse of power, and reduced options for stakeholders.
Low levels of democracy, weak civil participation, and low political transparency: Indicators of
poor governance, characterized by limited citizen participation, restricted access to information,
and little accountability leading to reduced transparency in public processes.
Higher levels of bureaucracy and inefficient administrative structures: A complex, slow, and often
redundant system with excessive layers of management, decreased flexibility, and increased costs
that can hinder effective performance and decision-making.
Low press freedom: Limited or restricted freedom of media outlets to report the news and express
opinions without censorship or fear of reprisal, leading to a lack of credible information and
increased risk of corruption.
Low economic freedom: Indicators of limited private enterprise, government intervention, and
regulation that impact economic growth, competition, and innovation.
Large ethnic divisions and high levels of in-group favouritism: Factors that can lead to social
exclusion and increased inequality, resulting in reduced social cohesion, increased rivalries, and
greater susceptibility to conflict and corruption.
Gender inequality: The unequal treatment of individuals based on their gender, often characterized
by differential access to resources, rights, and opportunities, and leading to increased vulnerability
to various forms of corruption.
Poverty: A state or condition of insufficient material resources, often characterized by inadequate
food, housing, or healthcare, that can lead to increased vulnerability to corruption or illegal
activity.
Political instability: A situation of political uncertainty or risk caused by changes or challenges to
political power, institutions, or processes that can lead to increased susceptibility to corruption,
conflict, or violence.
Weak property rights: A situation where individuals or groups have limited protection or control
over their assets, often resulting in reduced incentives for investment or productivity and
increased vulnerability to corruption.
Contagion from corrupt neighboring countries: A situation where corruption practices in
neighboring countries are imported or spread through interconnected systems, often resulting in
increased or entrenched forms of corruption.
Low levels of education: Indicators of poor or limited access to formal education or functional
literacy, often leading to reduced economic opportunities, social exclusion, and limited capacity to
participate effectively in democratic and governance processes.
3.2 Effects of Corruption
The effects of corruption are wide-ranging. Some of these effects are obvious, while others
require explanation. They include:
Economic loss and inefficiency
Although obtaining exact figures on the economic costs of corruption is difficult, a
2016 report from the International Monetary Fund (IMF) estimated the cost of bribery alone to be
between $1.5 to $2 trillion per year. This represents a total economic loss of approximately 2% of
global GDP. Yet it does not take into account the economic cost of all other forms of corruption.
Regarding fraud, money laundering and tax evasion, finally, beyond deadweight economic loss,
there is economic inefficiency to consider. When jobs (or contracts) are given to people (or
companies) who offer bribes or share a personal connection, this occurs to the detriment of
competition. The result is that more qualified candidates and firms are turned down. The more
widespread such practices are, the more inefficient the economy becomes. Corruption in
developing countries may cause underdevelopment. This can occur when international economic
and humanitarian initiatives are derailed as funds disbursed from loans and aid are embezzled or
handed out to inferior contractors who have won their bids through corrupt means (kickbacks,
bribery, nepotism, etc.). Furthermore, investment in physical capital and human capital will
reduce as resources are diverted from their most beneficial use.
Poverty and inequality
Corruption is generally not the weapon of the weak, according to the World Bank (2019), more
than 50% of the population of the oil-rich country live in extreme poverty. This example shows
that as political and economic systems are enlisted in the service of corrupt actors, wealth is
redistributed to the least needy sources. Mechanisms such as political representation and
economic efficiency are both compromised by self-dealing and secret exchanges. Under
conditions of corruption, funding for education, health care, poverty relief, and elections and
political parties' operating expenses can become a source of personal enrichment for party
officials, bureaucrats and contractors. Social programmes and the redistributive potential of
political systems suffer accordingly. A key result of all the instances named above is a state of
unequal opportunity in which advantages arise only for those within a corrupt network.
Personal loss, intimidation and inconvenience
When people experience corruption, it is rarely a positive experience. A bribe must be paid to
receive medical attention, obtain a building permit, pick up a package, or enjoy phone services. A
judge rules against a party, not based on the facts of the case, but because the opponent paid a
bribe, knows a power broker, or comes from the same racial or ethnic background. A person is
beaten, detained or subject to a higher fine because he or she refuses to pay a bribe solicited by a
police officer. Retirement funds are lost to fraudsters or tied up in a money-laundering scheme.
While the victims of corruption suffer personal loss, intimidation and inconvenience, those who
perpetrate corrupt acts and schemes tend to experience personal gain, a sense of superiority and
greater convenience - pending enforcement of the law, that is.
Public and private sector dysfunctionality
The cumulative effect of individual corrupt acts is public dysfunctionality. Whether offered by the
public or private sectors, the quality of goods and services decrease, and the process of obtaining
them becomes more expensive, time consuming and unfair. If bribes can successfully be offered
to police, doctors, and civil servants, then those who are most successful at extracting these funds
get ahead to the detriment of more honest colleagues and competitors who may perform better on
merit. Moreover, corporations lose the incentive to offer better services and products if they can
undermine competitors through obtaining political favours. State-owned enterprises and industries
are structured to enrich government officials instead of pursuing innovation and efficiencies. This
can lead to the loss of intrinsic motivation within organizations. Workers and managers are
demoralized. People begin to doubt the value of hard work and innovation.
Rigged economic and political systems
What is described as dysfunctional above is actually functional and profitable for corrupt actors.
Whether falling under the label of political cronyism, crony capitalism, political party cartels,
oligarchy, plutocracy and even kleptocracy, widespread patterns of private and public corruption
construct social systems that are rigged in the private interest. Citizens with strong ethical
principles (and citizens who lack significant funds, connections, favours to dispense, "hard power"
over others such as guns or private enforcers) lose representation, influence and power.
Impunity and partial justice
When corruption pervades the justice system, people can no longer count on prosecutors and
judges to do their jobs. The powerful may escape justice. In addition, citizens, especially those
with few resources or few powerful allies, may be unfairly accused of crimes, deprived of due
process, and wrongly imprisoned.
Rising illiberal populism
Corruption increases inequality, decreases popular accountability and political responsiveness,
and thus produces rising frustration and hardship among citizens, who are then more likely to
accept (or even demand) hard-handed and illiberal tactics. Deal with those tactics shift the blame
for economic insecurity and political decline onto immigrants or other minority groups, and onto
economic and political elites, who must, the theory goes, swiftly and decisively. The rule of law
and liberal values of tolerance and human dignity then become obstacles to needed change.
Organized crime and terrorism
Nefarious elements in society thrive as proceeds can be laundered, funding disguised, and judicial
officials and politicians corrupted through bribes (including gifts, favours and other benefits).
Levels of violence, illegal drugs, prostitution, sexual slavery, kidnapping and intimidation rise
accordingly. The causal arrow goes in both directions. Not only does organized crime cause
corruption, but opportunities for corruption left open by a weak, negligent or incapable State can
also lead to organized crime.
Diminished state capacity
Even if citizens were to adamantly demand that the problems listed above be addressed,
corruption undermines the power of politics. For example, to the extent that bribery, trading in
influence and state capture are widespread, political systems become incapable of addressing
social problems whose resolution would threaten vested interests. Naturally, this is never
acknowledged as such from within - state incapacity may manifest in a great many distracting and
misleading ways, such as wedge issues, political party restructuring, the emergence of scandals
and overwhelming outside issues that detract from structural problems, and so on. Under
conditions of state capture, political arbitrage can be expected to occur in a strategic fashion.
Issues will be played off against each other in order to frustrate systemic reforms. Moreover, as
Della Porta and Vannucci (2005) argue, corruption compromises the ethos of public service and
changes political culture to render meaningful, public-spirited reforms virtually unthinkable.
Increasing polarization and unrest
When corruption, in particular state capture, becomes the norm, this can lead to polarization
among citizens: those in support of corrupt regimes (because of kickbacks and handouts) versus
those opposed to them. In the presence of diametrically opposed groups in society, compromise
and reasoned discussion diminish. Policy is judged not based on ideology or a project's inherent
merits, but on who the policy proponents are and what benefits competing networks can reap.
Human rights violations
Corruption and human rights are closely associated with each other. Corruption is detrimental to
all areas and aspects of human well-being, in particular the human rights held by all individuals.
The concept of human rights is equally complex. Human rights are generally grouped into three
categories, also referred to as “generations” to reflect the order in which they were conceived and
recognized. “First generation” rights are civil and political rights, such as the right to a fair trial
and the right to participate in the political process. “Second generation” rights are economic,
social and cultural rights, such as the right to health and the right to education. “Third generation”
rights are collective or group rights, such as the right to self-determination and the right to
development. The concept of human rights generations is helpful for understanding the impact of
corruption on individuals and societies. The grouping of rights into categories or generations,
however, does not imply that certain rights are prioritized over others. On the contrary, human
rights are considered indivisible and do not have a hierarchical order. This is discussed in more
detail on the website of the United Nations Office of the High Commissioner for Human Rights
(OHCHR). The strong link between corruption and human rights violations is emphasized by
numerous scholars, practitioners and institutions. Some scholars have studied the correlation
between human rights abuses and the spread of corruption (Koechlin and Carmona, 2009, p. 310;
Ngugi, 2010; Peters, 2018). This correlation is also echoed by United Nations Global Compact
Africa Chief, Olajobi Makinwa: “When there is corruption, human rights disappear”
(Transparency International, 2019). Addressing the United Nations Security Council in 2018, the
Secretary-General of the United Nations, António Guterres, emphasized that corruption “deprives
people of their rights, drives away foreign investment and despoils the environment. Corruption
breeds disillusion with government and governance – and is often at the root of political
dysfunction and social disunity.” As a result, human rights bodies have been increasingly paying
attention to the negative correlation that exists between corruption and the enjoyment of human
rights, even if establishing a causal relationship between corruption and human rights violations
requires a case-by-case, evidence-based analysis.
Armed conflict and atrocity crimes
The diminished State capacity and development, brought about by corruption, can lead to
insecurity and even armed conflict (see, e.g., World Bank, 2011; World Bank, 2017). Indeed,
corruption has been recognized as a destabilizing factor and ultimately a "driver of conflict"
(USIP, 2010, p. 7). Although the causal link between corruption and atrocity crimes (including
genocide, war crimes and crimes against humanity) may be hard to prove, transitional justice
mechanisms have identified corruption as a root cause of conflict and atrocity.
Public frustration and cynicism
People lose trust in leaders, in social systems (public institutions) and sometimes even in society
and ethics, itself when they sense that corruption is widespread and corrupt actors are not being
held accountable. When political non-accountability increases, such perceptions persist for
protracted periods and political participation diminishes. Moreover, public frustration and the
sense that corruption is widespread can in turn pave the way for citizens themselves to take part in
corrupt transactions. In other words, social norms could encourage corrupt behaviour as people
tend to think that "if everybody is doing it, I might as well do it too." (Köbis, 2018). The effects of
corruption mentioned above can be categorized along the following lines: economic, political,
moral or psychological, humanitarian, ecological, security-related, and so on. To help us gain a
better understanding of corruption, the following section discusses some of the deeper meanings
of corruption.
Causes for Conflicts
Corruption fuels conflict by undermining the rule of law, worsening poverty, facilitating the illicit
use of resources and providing financing for armed conflict (United State Institutes of
Peace2010). Diamonds, oil, copper, drugs, and ores of many sorts are examples of resources
whose illicit exploitation requires government authorities to look the other way, judges to ensure
impunity and buyers to feel safe from scrutiny. Government contracts and trafficking in women
and children are also important sources of corrupt gains. The nexus between illicit wealth and
political or military power is one that often contributes to war and inhibits peace processes. It can
finance insurgency and block the establishment of legitimate authority accountable to citizens.
3.3 Methods of Corrupting
In systemic corruption and grand corruption, multiple methods of corruption are used concurrently
with similar aims. Bribery involves the improper use of gifts and favours in exchange for personal
gain. This is also known as kickbacks or, in the Middle East, as baksheesh. It is a common form of
corruption. The types of favours given are diverse and may include money, gifts, real
estate, promotions, sexual favours, employee benefits, company
shares, privileges, entertainment, employment and political benefits. The personal gain that is
given can be anything from actively giving preferential treatment to having an indiscretion or
crime overlooked.
Bribery can sometimes form a part of the systemic use of corruption for other ends, for example to
perpetrate further corruption. Bribery can make officials more susceptible to blackmail or to
extortion.
Embezzlement, theft and fraud
Embezzlement and theft involve someone with access to funds or assets illegally taking control of
them. Fraud involves using deception to convince the owner of funds or assets to give them up to
an unauthorized party.
Examples include the misdirection of company funds into "shadow companies" (and then into the
pockets of corrupt employees), the skimming of foreign aid money, scams, electoral fraud and
other corrupt activity.
Graft
The political act of graft is when funds intended for public projects are intentionally misdirected
to maximize the benefits to private interests of the corrupt individuals.
Extortion and blackmail
While bribery is the use of positive inducements for corrupt aims, extortion and blackmail centre
around the use of threats. This can be the threat of physical violence or false imprisonment as well
as exposure of an individual's secrets or prior crimes.
This includes such behavior as an influential person threatening to go to the media if they do not
receive speedy medical treatment (at the expense of other patients), threatening a public official
with exposure of their secrets if they do not vote in a particular manner, or demanding money in
exchange for continued secrecy. Another example can be a police officer being threatened with
the loss of their job by their superiors, if they continued with investigating a high-ranking official.
Influence peddling
Influence peddling is the illegal practice of using one's influence in government or connections
with persons in authority to obtain favours or preferential treatment, usually in return for payment.
Networking
Networking (both Business and Personal) can be an effective way for job-seekers to gain a
competitive edge over others in the job-market. The idea is to cultivate personal relationships with
prospective employers, selection panelists, and others, in the hope that these personal affections
will influence future hiring decisions. This form of networking has been described as an attempt
to corrupt formal hiring processes, where all candidates are given an equal opportunity to
demonstrate their merits to selectors. The networker is accused of seeking non-meritocratic
advantage over other candidates; advantage that is based on personal fondness rather than on any
objective appraisal of which candidate is most qualified for the position
Abuse of discretion
Abuse of discretion refers to the misuse of one's powers and decision-making facilities. Examples
include a judge improperly dismissing a criminal case or a customs official using their discretion
to allow a banned substance through a port.
Favouritism, nepotism and clientelism
Favouritism, nepotism and clientelism involve the favouring of not the perpetrator of corruption
but someone related to them, such as a friend, family member or member of an association.
Examples would include hiring or promoting a family member or staff member to a role they are
not qualified for, who belongs to the same political party as you, regardless of merit.
4. Building Ethical Society
An ethical society is a community that prioritizes moral values, upholds ethical principles, and
seeks to create a just and humane environment for its members. It encompasses individuals,
organizations, and institutions that strive to uphold integrity, fairness, compassion, and respect in
their actions and interactions. The concept of an ethical society is rooted in the belief that ethical
conduct is essential for both personal growth and societal progress. A moral society goes beyond
encouraging moral conduct on a personal level. It entails developing institutions, rules, and
regulations that place a premium on moral principles. For instance, crucial elements of an ethical
society include laws and regulations that demand transparency, forbid corruption, and uphold
human rights (Trevino and Nelson, 2014).
In this society, helping others, advancing the common good, and upholding moral principles are
highly valued by both individuals and institutions. Treating others with love, kindness, and
compassion is one of the fundamental tenets of a pual-based ethical society. This entails extending
grace to those who have sinned, displaying forgiveness to those who have erred, and upholding
justice and fairness in all dealings (Micah 6:8). In an ethical society, there is also a strong sense of
accountability, where people and organizations take ownership of their deeds and make amends
when necessary. In addition, a pual-based ethical society values stewardship, which entails
resource management that supports sustainability and the welfare of future generations (Genesis
1:28). An ethical society encourages moral conduct, social justice, and civic engagement, which
can result in a more just and equitable world. Sweeney (2008) emphasizes the significance of
ethical leadership and culture in promoting a culture of integrity and accountability within
organizations in "The Importance of an Ethical Culture in the Workplace.” A society that upholds
ethics fosters ethical leadership and culture, fostering a climate where people are encouraged to
act morally. According to Brown and Trevio (2014) make the case that an ethical society
encourages ethical behavior by fostering a culture where people feel valued, respected, and
supported in "Creating Ethical Workplaces.". Greater trust, cooperation, and social cohesion may
result from this, which may encourage both social stability and economic growth.
4.1 Causes for unethical society
People act unethically in various aspects of life is complex and multifaceted. While there is no
single answer that applies to every situation, the following factors can contribute to unethical
behavior:
Inner force or Demonic possession: - The majority of research on unethical behavior focuses on
psychological, social, and cultural factors. The Bible teaches that human beings are created in the
image of God (Genesis 1:27) and have a spiritual aspect to their being. Unethical behavior is seen
as a departure from God's moral standards and a violation of the relationship with God. It can
reflect a corrupted or sinful state of the heart and soul, leading to a separation from God and a
need for repentance and redemption. In Luke 18:19, Jesus says, “Why do you call me good? No
one is good—except God alone.” This passage is often interpreted to mean that only God is truly
good, and that human beings, while capable of doing good deeds, are not inherently good. This
belief is based on the Christian doctrine of original sin, which holds that all human beings are
born with a sinful nature and are in need of redemption. After sinful nature died people keeping to
live by un-renewed mind, so inner force which is sinful nature and un renewed mind setup
changes people to walk ethically.
Lack of awareness or understanding: Sometimes, individuals may not be fully aware of the
ethical implications of their actions or may not understand the ethical standards that should guide
their behavior.
Personal gain or self-interest: People may engage in unethical behavior when they believe it will
benefit them personally or advance their own interests, even if it means disregarding ethical
principles.
Pressure or influence: External factors, such as peer pressure, organizational culture, or societal
norms, can play a significant role in influencing individuals to act unethically. The fear of
consequences or the desire for acceptance and approval can lead people to compromise ethical
standards.
Moral disengagement: Individuals may engage in cognitive processes that allow them to distance
themselves from the moral implications of their actions. This includes rationalizing unethical
behavior or minimizing its consequences, thereby making it easier to engage in such behavior.
Lack of accountability: When individuals believe that their unethical actions will go unnoticed or
that they will not face consequences, the likelihood of engaging in unethical behavior increases.
Inadequate ethical education or guidance: A lack of proper ethical education or guidance can
contribute to individuals not having the necessary tools or knowledge to make ethical decisions or
understand the importance of ethical behavior.
Organizational factors: Unethical behavior can be influenced by the culture, values, and
practices within an organization. If an organization prioritizes short-term gains or fails to promote
ethical conduct, individuals within that organization may be more likely to act unethically.
Cross-cultural differences: Cultural norms and values can influence what one society or group
considers ethical versus unethical. Ethical behavior may vary across cultures, making it
challenging to define and maintain consistency in ethical standards.
It is crucial to note that not all individuals act unethically, as many people strive to uphold ethical
standards in their personal and professional lives. However, understanding the underlying factors
that contribute to unethical behavior can help organizations and societies implement strategies to
promote ethical conduct and mitigate unethical actions.
4.2 Arguments in Build Ethical Society
There is a close connection between ethical leadership and ethical societies. Here are two
arguments.
First Argument. Second argument: - Prioritizing developing ethical leaders first: On the
other hand, proponents of prioritizing the development of ethical leaders argue that leaders have a
significant impact on shaping organizational and societal values. By focusing on developing
ethical leaders, there is an opportunity to create a ripple effect through their influence on those
they lead. According to Ciulla (2014), leaders play a crucial role in modelling ethical behavior and
setting the tone for an organization or community. Consequently, prioritizing ethical leadership
development can have a broader impact on the ethical climate compared to solely focusing on
building an ethical society.
Studies and other evidence point to the interdependence of moral leaders and moral societies.
While ethical societies can support and strengthen ethical leadership, ethical leaders can create
ethical cultures within their organizations. Ethical societies and ethical leaders can both contribute
to the creation of a more just and equitable world by fostering ethical behavior and placing a high
priority on moral principles. According to Ciulla's "The Ethics of Leadership" from 2005, moral
leadership is characterized by a focus on moral principles and a dedication to doing what is right.
Ethical leaders can influence and encourage others to follow their example by putting moral
conduct ahead of personal gain, thereby fostering the development of more ethical societies
Second Argument: Prioritizing ethical society building first: Some argue that focusing on
building an ethical society should take precedence. By instilling ethical values and promoting
ethical practices in society as a whole, there is potential for a positive influence on all individuals,
including leaders. Proponents believe that an ethical society can create a virtuous cycle where
individuals are socialized to act ethically from an early age, and this foundation can then shape the
behavior of leaders within that society. According to Treviño and Nelson (2016), an ethical
society can serve as a supportive environment for leadership development, providing a normative
framework and shared values that shape leadership behavior.
4.3 Building Ethical Society to Combat Corruption
Combating corruption requires creating a moral society. Societies with little accountability,
transparency, or ethical principles tend to have higher levels of corruption. On the other hand, an
ethical society is one where the rule of law is respected, people and organizations behave
honorably, and there is a culture of accountability and transparency. This type of society is much
less prone to corruption (Transparency International).
There is a direct link between ethical standards and the prevalence of corruption, according to
numerous studies. Arinaitwe et al.'s study is one illustration. The public sector corruption and
ethical leadership were found to be negatively correlated by (2019). Researchers came to the
conclusion that "ethical leaders create a culture of accountability and transparency, which fosters
ethical behavior and reduces opportunities for corruption" .
In a similar vein, Hussain et al. (2016) discovered that a lack of moral principles was a significant
factor in predicting corruption in the private sector. Companies that explicitly state their ethical
values and incorporate them into their operations are less likely to engage in corrupt behavior,
according to the study (p. 207).
A culture of accountability and transparency must be established, and the rule of law must be
upheld in order to build an ethical society. These are all essential elements in the fight against
corruption at all scales, from individual behaviors to institutional norms (Transparency
International, n.D.). D.).
4.4 World Experiences in Building Ethical Society
The significance of ethical leadership in creating an ethical society is shown by these studies.
Ethical leaders can foster a culture of ethical awareness, encourage trust, transparency, and
accountability, and motivate followers to act morally. Ethical leaders can develop a society that
values justice, decency, and honesty by doing this.
In Danish public organizations, ethical leadership was linked to employee well-being, job
performance, and organizational citizenship behavior, according to a study by Pedersen and
Neergaard (2019). According to the study, ethical leadership can support a favorable work
environment, boost employee engagement, and foster a culture of respect and trust.
Rwanda: In a research project by Palazzo et al. The Rwandan society was rebuilt after the 1994
genocide, and it was discovered in (2019) that ethical leadership was essential. According to the
study, ethical leadership can foster societal healing, promote transparency and accountability, and
help to rebuild trust.
South Korea: Lee and Park's (2018) research revealed that in South Korea, ethical leadership was
positively correlated with workers' job satisfaction and organizational commitment. The study
also discovered that ethical leadership was crucial in promoting ethical behavior at all
organizational levels.
Norway: According to a 2018 study by Johannessen and Olsen, ethical leadership was associated
with employees' perceptions of the ethical climate in Norwegian organizations. According to the
study, moral leaders can encourage an environment of trust and openness while fostering a culture
of ethical awareness.
U.S.: A study by Yukl et al. (2013) discovered that in the United States, ethical leadership was
positively correlated with followers' satisfaction, engagement, and performance. According to the
study, moral leaders foster moral behavior, foster a culture of trust, and encourage their followers
to behave honorably.
New Zealand: According to a study by Einarsen and Skogstad (2015), ethical leadership was
linked to fewer instances of unethical behavior in New Zealand organizations. According to the
study, moral leaders can promote an environment of openness and accountability while also
fostering a culture of ethical awareness.
Chapter Three: Research Methodology
1. Introduction
Creating an ethical society and preventing corruption are two of the most important issues facing
governments and organizations around the world. In recent years, the importance of leadership in
preventing corruption and implementing mitigation measures has grown. Numerous studies have
looked into how various leadership philosophies affect reducing corruption and implementing
policies. An investigation by Varma et al. (2013) looked at how leadership can help India fight
corruption. In contrast to transactional leadership, which had little effect, the study found that
transformational leadership had a significant impact on reducing corruption. The study also
discovered that participative leadership was successful in minimizing corruption.
Similar to this, a 2017 study by Mokhtar and Ismail looked at the influence of various leadership
philosophies on Malaysia's mitigating policy. According to the study, transformative leadership,
then participative leadership, were the most successful at reducing policy. The research also
revealed that transactional leadership had little effect on policy mitigation.
A public administration's leadership style is a crucial component, particularly when it comes to
thwarting corruption and minimizing policy. This study aims to analyze the leadership style of the
Addis Ababa City Administration in preventing corruption and implementing policies to mitigate
it in a few different public sectors because it is not an exception to this rule.
This study will use a mixed-methods research design that combines both qualitative and
quantitative data collection techniques to accomplish this goal. In-depth interviews and focus
groups with important stakeholders in the chosen public sectors will be part of the qualitative data
collection techniques. Surveys and questionnaires will be used to collect quantitative data on the
prevalence of corruption in the chosen public sectors and the efficiency of the leadership approach
in addressing it.
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS
ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS

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ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS

  • 1. - 2 - VISION INTERNATIONAL UNIVERSITY, CALIFORNIA UNITED STATE OF AMERICA AFFILIATED WITH GRACE THEOLOGICAL AND LEADERSHIP UNIVERSITY ADDIS ABABA ETHIOPIA. ANALYSIS THE IMPACT OF LEADERSHIP STYLE ON COMBATING CORRUPTION AND BUILDING ETHICAL SOCIETY; CITY ADMINISTRATIONIN OF ADDIS ABABA IN SELECTED PUBLIC SECTORS. By Temesgen Mathewos January 2023 Addis Ababa, Ethiopia
  • 2. Analysis the Impact of Leadership Style on Combating Corruption and Building Ethical Society; Addis Ababa City Administration in Public Sectors A Dissertation Proposal Submitted To the School Of Graduate Studies Vision University Allied With Grace Leadership and Theological University In Partial Fulfilment of the Requirements for the Degree of Doctor of Philosophy (PhD) In Leadership BY TEMESGEN MATHEWOS Major Advisor: Daniel Temesgen (Professor) January 2023 Addis Ababa, ETHIOPIA
  • 3. Table of Contents Chapter One: Introduction ..........................................................................................................................- 1 - 1. Introduction.........................................................................................................................................- 1 - 1.1 Background.......................................................................................................................................- 1 - 1.2 Statement of problem........................................................................................................................- 4 - 1.3 Rationale of the study .......................................................................................................................- 7 - 1.3 Research Objectives..........................................................................................................................- 8 - 1.3.1 General Objectives.....................................................................................................................- 8 - 1.3.2 Specific Objectives ....................................................................................................................- 8 - 1.3.3 Research Question......................................................................................................................- 8 - 1.4 The Research Hypothesis............................................................................................................- 9 - 1.5 Assumptions the Study .....................................................................................................................- 9 - 1.5 Significance of the Study..........................................................................................................- 10 - 1.5 Scope of the Study ..........................................................................................................................- 11 - 1.6 Definitions of Key Terms ...............................................................................................................- 12 - Chapter Two: Literature review................................................................................................................- 16 - 1. Introduction.......................................................................................................................................- 16 - 2. Review of Leadership styles ............................................................................................................- 17 - 2.1 Basic types of leadership styles ......................................................................................................- 17 - 2.2 Factors of leadership.......................................................................................................................- 22 - 3. Concept of corruption .......................................................................................................................- 25 - 3.1. Causesof Corruption ......................................................................................................................- 27 - 3.2 Effects of Corruption ......................................................................................................................- 29 - 3.3 Methods of Corrupting ...................................................................................................................- 34 - 4. Building Ethical Society ....................................................................................................................- 36 - 4.1 Causes for unethical society ...........................................................................................................- 37 - 4.2 Ethical Leaders to Build Ethical Society...........................................................................................- 39 - 4.3 Building Ethical Society to Combat Corruption...............................................................................- 40 -
  • 4. 4.4 World Experiences in Building Ethical Society................................................................................- 40 - Chapter Three: Research Methodology ....................................................................................................- 42 - 1. Introduction.......................................................................................................................................- 42 - 2. Research Site and Population............................................................................................................- 43 - 2.1 Research Design..............................................................................................................................- 44 - 2.2 Population and Sampling Techniques.............................................................................................- 45 - 2.2.1 SampleDesign ..........................................................................................................................- 45 - 2.2.2 Sampling Techniques...............................................................................................................- 45 - 2.2.2.2 Sampling Techniques for Qualitative data............................................................................- 45 - 2.2. 3 Sample Size Determination.....................................................................................................- 46 - 3. Data Sources, Types and Collection Method....................................................................................- 48 - 3.1 Data Sources ...................................................................................................................................- 48 - 3.1.1 Primary Data Source................................................................................................................- 48 - 3.1.2 Secondary Data Source............................................................................................................- 48 - 3.2 Data Types ......................................................................................................................................- 49 - 3.2.1 Qualitative Data .......................................................................................................................- 49 - 3.2.2 Quantitative Data .....................................................................................................................- 49 - 3.3 Data Collection Method..................................................................................................................- 50 - 3.3.1 Qualitative Data Collection:.....................................................................................................- 50 - 3.3.2 Quantitative Data Collection:...................................................................................................- 50 - 4. Method of Data Analysis ..................................................................................................................- 52 - 4.1 Econometric analysis ......................................................................................................................- 52 - 4.1.1 Variable Categorizing ..............................................................................................................- 54 - 3.1.2 Checking Heterogeneity, Endogeneity and Multicollinearity..........................................- 55 - 5. Ethical consideration.........................................................................................................................- 56 - 6. Time frame........................................................................................................................................- 56 - 7. Budgeting line...................................................................................................................................- 58 - 8. References.........................................................................................................................................- 59 -
  • 6. List of tables Table 2 Sample size category................................................................................................................... - 47 - Table 3Top 20 Most (and Least) Corrupt Countries in Africa, 2023....................................................... - 66 - Table 4Top 30 Least Corrupt Countries in Africa, 2023 ..............................................................................68 List of Figures Figure 1 Factors affecting leadership....................................................................................................... - 22 - List of Equation Equation 1 Klitgaard corruption formula. C = R + D – A ....................................................................... - 25 - Equation 2 Equation for sample size....................................................................................................... - 46 - Equation 3 the econometric formula for Corruption................................................................................ - 52 -
  • 7.
  • 8. - 1 - Chapter One: Introduction 1. Introduction Ethiopian political, economical, social, human rights and economical aspects and specifically peace and stability at urban area, are not changing relative to world growth. This study will look for possible correlations between leadership styles, combating corruption rate and changing society’s values. It will begin with background information on leadership, leadership Styles and corruption combating techniques. Statements of the problem, purposes of the research, followed by delimitations, limitations, and a conclusion will comprise this chapter. 1.1 Background We live in a world in which individuals, organizations, countries, and societies are increasingly connected. Therefore, the impact of leadership—both good and bad—reverberates throughout entire political and economic systems. Greater connection equals greater influence, and this has changed the nature of leadership. Leaders have influence beyond their organizations, increasing the interconnection between ethics and leadership. Leadership happens among people and usually involves the use of influence to attain goals (Barlow et al., 2003, cited by John Kwaku). Influencing people implies that the relationship between a leader and his people is not passive. Furthermore, influence has been exerted to attain some specific end or goal. Therefore, when Fairhurt (2007) defines leadership as the ability to influence people towards the achievement of goals, he captures the idea that leaders must be involved with other people in the attainment of results or goals. A leadership style determines how leaders implement plans and strategies to accomplish given objectives while accounting for stakeholder expectations and the wellbeing and soundness of their team. Leadership matters because the style adopted by any leader is usually a combination of their personality, life experiences, level of emotional intelligence, family dynamics, and way of thinking. Thus, leaders should be able to understand their leadership style in relation to the combination of traits listed above and determine how they can be more effective. Similarly, more studies (Othman, 2013) have affirmed that there is a relationship between leadership style and organizational outcomes. Krishnan (2000) studied leadership style and ethical climate and found that leadership style has a significant influence on corporations.
  • 9. Corruption is another key concept considered in this study. Corruption affects every society and appears in multiple forms, such as electoral fraud, illegal voter manipulation, influence peddling, patronage, nepotism, embezzlement, and kickbacks. Corruption is a complex phenomenon without a uniform definition. An overview of the different forms and definitions of corruption, as well as its harmful effects across the globe, is available. It is important to distinguish three main types of political systems or leadership styles: democratic, hybrid, and authoritarian. While these categories are by no means exhaustive, they provide a helpful framework for discussing the causes and effects of corruption in different political structures. Corruption can manifest itself differently depending on the leadership style or political system. While corruption affects all societies, scholars argue that the public's acceptance of corruption varies across societies and contexts (Heidenheiment and Johnston, 2002; Kubbe and Engelbet, 2018). This implies that what is considered a bribe in one country might be considered a gift in another. Even corruption and conflict feed each other and threaten durable peace. On the one hand, conflict creates a breeding ground for corruption. Political instability, increased pressure on resources, and weakened oversight bodies create opportunities for crimes such as bribery and embezzlement. Corruption is also a threat to global security, and countries with high CPI scores play a role in this. For decades, they have welcomed dirty money from abroad, allowing kleptocrats to increase their wealth, power, and geopolitical ambitions. The catastrophic consequences of the advanced economies’ complicity in transnational corruption became painfully clear following Russia’s full-scale invasion of Ukraine. The Top 11 Most Corrupt Countries in the World (2020 Corruption Perceptions Index): South Sudan, Somalia,Somalia ,Syria Venezuela,Afghanistan,Korea,Yemen, Equatorial Guinea, Libya, Burundi, and the Democratic Republic of the Congo Although Somalia has been ranked as the most corrupt country in the world for successive years, the country has been making incremental improvements, scoring 9 in 2019, 12 in 2020, and 13 in 2021. Moving in the other direction is South Sudan, whose score drops from 12 in 2020 to 11 in 2021. Corruption is almost universal across the planet but varies widely in severity, type, and consequences. Although corruption is not unique to Africa, African corruption remains pervasive and among the world’s most severe (Lawson, 2009). For example, data from Transparency International (about which more later) indicate that six African countries are rated as “extremely corrupt” (scores under 20) and another 35 are considered “very corrupt” (scores 20–39); only Botswana emerges as a member of the “slightly corrupt” group, and no African country is among the “least corrupt” group, which includes most of the economically advanced world. Ninety
  • 10. percent of Africa’s population—roughly one billion people out of 1.2 billion—lives under very or extremely corrupt governments, a rate that exceeds most of the rest of the world. Ethiopia is the 94th least corrupt nation out of 180 countries, according to the 2022 Corruption Perceptions Index reported by Transparency International. There are high levels of corruption in Ethiopia, although they are less high than in comparable regional countries. Examples of corruption include business corruption, judiciary corruption, police, public services, land administration, tax administration, custom administration, procurement, natural resources and othersAccording to a World Bank study conducted in Ethiopia, corruption is the second-most challenging problem that all households face after poverty (World Bank, 2005). According to Tesfaye (2007), during the previous regimes (Imperial and Dergue), corruption is said to have resulted in undermining the legitimacy of the governments and weakening their structures, reducing productivity, hindering development, marginalizing the poor, worsening poverty, creating social unrest, and speeding up their downfall. Even though corruption is one of the biggest issues and impediments to good governance and sustainable development worldwide, it is more common in developing countries than in developed ones. Ethiopia is one of the developing countries where the prevalence of corruption has been uncontrolled (Selamu, 2010). They turned the red line we put in place for corruption into a red carpet, and theft is now being considered a right (PM Abiy Ahmed, 2022). Addis Ababa: Corruption has become a daily inescapable challenge in Ethiopia to the extent that people are deprived of their rights to basic public services that they are legally entitled to. It has not only been impacting the daily lives of people, but it has also become an additional bottleneck in the already deteriorating economy. The 2021 corruption perception index published by Transparency International ranked Ethiopia 39th on a scale of zero to 100 (where zero is highly corrupted and 100 is very clean). According to the category in the index, Ethiopia is one of the countries exploited by corruption. Therefore, the researcher will find which empirical evidence and leadership style’s impact on combating corruption and strategies are settled or will be settled to mitigate at the society level.
  • 11. 1.2 Statement of problem The whole world has realized and recognized in its belief that the terror of corruption in its various manifestations is the biggest obstacle to all attempts at progress and the main undermining of all pillars of development, which makes the effects and dangers of corruption more deadly and influential than any other defect, as its destructive role is not limited to some aspects of life without others but extends to various aspects of economic, It is believed (Skoryk (2020); Popova and Surikhin (2021)) that corruption is the main cause and motivator of the collapse of the social fabric and the spread of hatred between classes and groups of society as a result of injustice, equality, and equal opportunities, in addition to the direct and indirect impact of the economic and political repercussions of corruption on the stability of security conditions and social peace. From that point, just as leadership is influential on an organizational level in terms of performance and productivity, it must also be influential in terms of awareness and understanding of corruption and its destructive outcomes, and that's what the current study seeks to reach (Viant, 2020). As an emerging phenomenon in organizational leadership studies, corruption is multi-dimensional due to its systemic, pervasive, and endemic nature. The problem of curbing corruption has concerned philosophers, social scientists, and policymakers since Aristotle. According to a World Bank study conducted in Ethiopia, corruption is the second-most challenging problem that all households face after poverty (World Bank, 2005). According to Tesfaye (2007), during the previous regimes (Imperial and Dergue), corruption is said to have resulted in undermining the legitimacy of the governments and weakening their structures, reducing productivity, hindering development, marginalizing the poor, worsening poverty, creating social unrest, and speeding up their downfall. Even though corruption is one of the biggest issues and impediments to good governance and sustainable development worldwide, it is more common in developing countries than in developed ones. Ethiopia is one of the developing countries where the prevalence of corruption has been uncontrolled (Selamu, 2010). After the current government, the Ethiopian People’s Revolutionary Democratic Front (EPRDF), came into power, different measures were taken to control the persistence and further escalation of corruption in the country. The Federal Ethics and Anti-Corruption Commission (FEACC) was established in May 2001 as part of the measures taken by the Ethiopian government to combat corruption through investigation, prosecution, and prevention (FEACC, Proclamation 235/2001). Despite the establishment of FEACC and all other efforts exerted by the government, the problem of corruption remains in the country.
  • 12. Even though there are few recent studies on corruption in Ethiopia, it is evident that corruption is a significant problem in the country, although it appears that it is not as rampant as it is in other countries in the region (World Bank 2012). Some anecdotal evidence suggests a widespread belief that, in recent years, the extent and sophistication of corruption have grown at an alarming rate. However, further research is needed to verify this perception. On behalf of the state-run broadcaster, the mayor of Addis Ababa, Adanech Abebi, revealed the involvement of city administration employees in various forms of corruption. She said, “We are well aware of the problems brokers have created at the national level. Apart from regular brokers, government workers who are supposed to serve the public have been widely involved in the dealership, considering it the easiest technique to accumulate wealth. The investigation revealed the involvement of officials in corruption related to land grabbing and issuing identification cards. The mayor also exposed the challenges from the judiciary organ contradictory to the fight against corruption in that it ruled in favor of 460 corrupt white collars in the city, which resulted in contention between the judiciary body and the city administration and despairing the fight against corruption. Addis Ababa, November 17, 2022 (ENA) "The government of Ethiopia has established a national committee to coordinate its anti-corruption campaign," Prime Minister Abiy Ahmed said. The premier noted in a statement issued regarding the establishment of the committee that corruption has currently become a threat to the security of the country. This newly established committee will bring the culprits of corruption before a court of law by distinguishing the actors in addition to those who have already been identified through study. He stated that “our people have been suffering from corruption in service delivery, land-related practices, the financial sector, sales and procurement processes, and the justice system."Citizens have also been facing corruption in various government institutions, development organizations, and public institutions.” As per the discussion held with the public, corruption was identified as one of the security threats to the country that hinders the nation’s path to prosperity, he added. He also mentioned the efforts being carried out by the government to prevent corruption by scrutinizing government structures and putting in place new systems supported by technology. "Efforts have also been made to prosecute government officials and other actors who are engaged in crimes of corruption," the premier stated.However, the study report revealed that people who thought the war and COVID-19 that the country encountered had taken the attention of the government have been engaged in activities to destroy Ethiopia by creating networks.
  • 13. Hence, the findings of the study and the evaluation of public discussions indicate the need for the government to undertake a strong and decisive operation on acts of corruption, just like it did on security matters. On the one hand, the government will work to eliminate laws, regulations, guidelines, and procedures that are vulnerable to corruption, he said, adding that it will also intensify its efforts to expose corrupt actors and bring them to justice. Furthermore, Prime Minister Dr. Abiy indicated that the government is conducting an investigation into government officials, employees of government institutions, bribe givers, and bribe takers. However, corruption is carried out in a sophisticated way, using technologies and sometimes under the cover of the law, he said. The federal, city administration, sub-city, and district leaders do not follow the same leadership style to stop corruption, and the same government and party lead the way to identify why the leadership ethics could not be the same or similar. Various studies have been conducted on corruption, and we see that there are ambitions, and corrupt people are prosecuted. Findings: This study will be inclusive as the work done on what the results are and why people do not participate enough in the prevention and suggestion system is not well defined. It is not possible to suggest which leadership style is best for preventing and fighting corruption due to the lack of national empirical studies. Based on what was mentioned above, the current study mainly aims at examining how administrative leadership traits and characteristics can help combat corruption within selected public sectors in Addis Ababa administration leadership styles and the Federal Ethics and Anti- Corruption Commission.
  • 14. 1.3 Rationale of the study The purpose of this study to explore the correlation between leadership style and corruption ,then the influence of these styles on the combating corruption and building ethical society and leaders in city administration, sub cities, districts and at each sectors of Addis Ababa, Ethiopia. Also, the innermost aim of this study to reveal leadership similarities of city administration with sub city’s, districts’ and sectors’ leadership styles and commitment and understanding of each level’s and sectors’ leaders about impact corruption and creating their own mitigating system in their administration and office. Hence, the purpose of this study is to assess leadership styles to combating corruption and building corruption fighter society in City administration of Addis Ababa.The qualitative approach offered leadership styles the influence of these styles in complex issues like changing human behaviour to become ethical ( Yera Keita,2019)
  • 15. 1.3 Research Objectives 1.3.1 General Objectives The general objectives for the research title Analysis of the impact of leadership style on combating corruption and mitigating policy in public sectors a study of selected public sectors in Addis Ababa city administration 1.3.2 Specific Objectives In order to attain the impact of leadership style on combating corruption and building Ethical society in selected public sectors of Addis Ababa city administration, the following specific objective are putted to: 1. Investigate the leadership style implementing by the administrators in the selected public organizations in Addis Ababa City Administration. 2. Examine the impact of leadership style on the effectiveness of corruption prevention and combating implementation in the selected public organizations under study. 3. Identify the challenges faced by leaders in the selected public organizations while combating corruption in Addis Ababa City Administration. 1.3.3 Research Question Bearing in mind the research objectives, the following research questions will have guided. 1. What are the different leadership styles utilized by administrators in the selected public organizations under study to combat corruption and mitigate policy in Addis Ababa City Administration? 2. How does the leadership style adopted by administrators influence the effectiveness of corruption prevention and policy implementation in the selected public organizations under study? 3. What are the challenges faced by leaders in the selected public organizations while combating corruption and building ethical society in Addis Ababa City Administration?
  • 16. 1.4The Research Hypothesis H1: The leadership styles adopted by administrators in selected public organizations in the Addis Ababa City Administration have a significant impact on their ability to combat corruption and mitigate policy. H2: There is a significant relationship between the leadership styles of administrators in selected public organizations and the effectiveness of corruption prevention and policy implementation. H3: Leaders in selected public organizations face significant challenges while combating corruption, such as a lack of resources, political pressure, and resistance to change. H4: The identification of effective leadership styles in selected public organizations in Addis Ababa City Administration will lead to recommendations for adopting appropriate leadership styles for combating corruption and mitigating policy in public organizations. 1.5 Assumptions the Study Assumptions are statements that are considered to be true but have not yet been proven by evidence or research. Here are some possible assumptions related to the research objectives: Assumption 1: Assumption regarding the first objective: Administrators in public organizations play a crucial role in combating corruption and mitigating policy, and their leadership styles can significantly affect the organization's ability to achieve these goals. Assumption 2: Assumption regarding the second objective: Different leadership styles affect the level of effectiveness in corruption prevention and policy implementation in public organizations, and this relationship can be measured through data analysis. Assumption 3: Assumption regarding the third objective: The challenges faced by leaders in public organizations in combating corruption and mitigating policy in Addis Ababa City Administration can vary depending on their leadership style and can be identified through quantitative and qualitative analysis of data
  • 17. 1.5Significance of the Study In view of the fact that Corruption in the public sector can cause serious damage like undermining public trust in government, desecrating public or government resources and money, causing injustice advantaging some at the expense of others, inefficiencies in plan or operation, affect national security through internal and external conflict, reputational damage which makes it difficult to recruit and retain best value in tender process. It makes also more difficult to attract investment. Adversely affecting prosperity. So combating corruption significant to bring holistic prosperity and national stability. This study is of great substance especially to all body whose credit includes that of lessening of corruption. Below is the way it will serve as per different sort: The government/A.A City administration: To end up internal and external conflicts; To achieve national and embraced change; The responsibility given by the people to serve the people well and to answer the people's democratic and economic questions, as well as to bring stable politics and good foreign relations to ensure the security of the country in a better way. Ethics and Anti corruption sector: since it somehow monitors and evaluates all governmental institution whose attribution include that of preventing and/or fighting against corruption therefore this will reveal gaps that needed to be overcome. Other researchers: universities, institutions, other related organizations and scholars who are interested in research in this area will also find this study useful for consultation. This study will be beneficial to other researchers by providing necessary knowledge and information to be used as a basis for further research about the anti corruption or leadership styles related studies. Global Society: Various international communities, especially East Africa Community (EAC), African union (AU) and the United Nation (UN), in addition civil society organization shall also much benefit from this study since it shall know how the policy in this matter is being challenged in its setting or implementation. Political party/ies: Popular with the public by understanding the current situation and putting solutions to problems. It helps them to become competitive governance from other historical politics and competing political parties.
  • 18. The citizens: taking in consideration that the citizens are the very first victims of the bad governance resulting from the failure of corruption control, and then they should much more benefit from this research so as to know the right they deserve. 1.5 Scope of the Study Effects of corruption are different in diverse situations like in national security, democracy, good governance, economy and social issues which lead to failure to achieve faire public administration based on leadership styles. However this study is reach only definite public administrative organizations by emphasizing leadership style in combating corruption and changing society’s attitude as a long run and it will put up with in a period of three or two leadership styles or regimes concerned site is a city administration of Addis Ababa, plus organizations with leadership and corruption struggle in their attribution.
  • 19. 1.6 Definitions of Key Terms The key terms that are most frequently used in this study are defined below. Such as: city administration, leadership, monopoly, discretionary power, transparency, perception, public sectors, governance, and policies for reducing corruption. Leadership is the capacity to persuade others to voluntarily follow one's instructions or adhere to one's decisions. " (Leslie Dan Lloyd, 1995). According to John et al., "leadership is the capacity to influence others to actively pursue defined objectives.". 1987) . "Leadership is the capacity to influence, inspire, and direct others to achieve desired objectives" (Don dan John 1992). Influence is all that is necessary to lead, according to John C. Maxwel). The attempt to influence, guide, motivate, and inspire others to achieve the objectives of the organization or group can be concluded from the various definitions of leadership offered by some experts. Leadership Styles: When directing, inspiring, and managing others, a leader's methods and behaviors are referred to as their leadership style. The way a person strategizes and executes plans while taking into account the expectations of stakeholders and the well-being of their team depends on their leadership style. Knowing your leadership style enables you to give employees the proper direction and feedback while also better understanding your own thoughts, decision- making processes, and potential business decision-making strategies. It also refers to the behavioural strategy used by leaders to sway, inspire, and guide their followers. A leader's leadership style determines how they carry out their plans and strategies to achieve specific goals while taking into account the needs and expectations of their team as well as the expectations of their stakeholders. Additionally, it can help you comprehend how your direct reports see you and the reasons behind any particular feedback they may give. As they are frequently linked to the English words corruption is "destroy" or "destruction," the Latin words "corrupti" and "corrumpere" are even more eloquent in expressing what this transformational process of decay signifies. Destructive decay is what is meant by the term "corruption" in its most fundamental sense. Although there isn't a single, accepted definition of corruption, many experts in the field use Transparency International's, which is defined as "the abuse of entrusted power for private gain.". A person "promises, offers, or gives" undue benefits to a public official "in order that the public official act or refrain from acting in the performance of his or her official duties" is considered to have engaged in the criminal act of corruption under international law. If a public official solicits or accepts such an unfair advantage, corruption is also committed. It is the act of infringing upon the laws of political, economic, social, and
  • 20. diplomatic interests in order to bring about conflict between individuals, groups, institutions, administrations, and nations. According to Farida (2006), corruption is derived from the Latin word "corrumpere," which means to break something. When corruption occurs, the law, a legal rule, a moral standard, and in the worst cases, communities and human personalities, are all broken. Its origins are in the Latin word "corrupter," which means to break something. When corruption occurs, the law, a legal rule, a moral standard, and in the worst cases, communities and human personalities, are all broken (Farida, 2006). According to the World Bank (1993), governance refers to the political means by which a nation's economic and social resources are managed for development. Also described as involving interaction between formal institutions and those in civil societies by Diedhiou (2007). It refers to a procedure whereby those in political positions use their influence and authority to shape policies and choices affecting public life and social improvement. Therefore, governance is much more than just a regime or a state; it also refers to the practice of good government. The biggest and most pressing issue that African nations are currently facing is government failure. Instead of serving the people, leadership positions in Africa have frequently been used to manipulate the populace and take resources from the nations. Because they are unable to provide public services for the benefit of the populace, most African governments' legitimacy has been questioned. A cycle of corruption and groupthink has been enacted as a result of administrative abuse of power. Government has been reduced to party politics, and officials only care about their fellow party members at the expense of ignoring or undermining the fundamental needs of the populace. Public employment has therefore increased in value and appeal. Groups compete for the opportunity to be in power, and those who already hold it tenaciously uphold it even at the expense of peace and national development. Accountability: The idea that those who carry out crimes against humanity should be made to answer for their deeds, either by the nation in which they took place or by the international community. Political accountability refers to the duty or obligation of the government to act in the interests of society. Legal accountability refers to the procedures for holding public officials accountable for deeds that are against accepted norms and values. In line with Anas Lamin's (2020) assertion, accountability is a crucial component of any political organization, especially in the eyes of the
  • 21. electorate. Citizens have a right to know what their government is doing and what actions have been taken with them as the intended beneficiaries. Government monopolies, also known as public monopolies or government monopolies, are a type of coercive monopoly in the economics world where one government agency or government corporation serves as the sole supplier of a specific good or service and where competition is illegal. It occurs when one business and its product control an entire sector, resulting in little to no competition and requiring customers to only buy the particular product or service from the one business. Transparency: Making information about government financial and decision-making practices visible or accessible so that interested parties can both access and influence those processes. With better resource allocation, increased efficiency, and better overall prospects for economic growth, transparency is regarded as a crucial component of accountable governance. Who, why, what, how, and how much are the key questions. It entails putting formal and informal rules, plans, processes, and behaviours into the open. It enables the public to hold all authorities accountable for the common good. Information seeking and receiving is a human right that can protect against corruption and boost confidence in public officials and institutions. Nevertheless, ensuring that information is accessible, understandable, and used by citizens is just one aspect of transparency. A decision that is made by a specific person or group rather than being governed by rules is referred to as having discretionary power. Any office of the government where any government activity is carried out is referred to as the "public sector.". Public Official: According to international law, a public official is "a person who holds a legislative, executive, administrative, or judicial office" (whether appointed or elected). Additionally, it refers to someone who "performs a public function" or renders a public service. Rule of law: A governing principle according to which all individuals and institutions, both public and private, as well as the state itself, are subject to laws that are made publicly, equally enforced, arbitrarily decided, and consistent with international human rights standards. Laws must be transparently drafted and applied fairly and consistently without bias. All people must also have access to justice, which includes the freedom to look for and receive redress from both informal and formal institutions of justice..
  • 22.
  • 23. Chapter Two: Literature review This chapter reviews the conceptual definition of leadership styles, leadership theories, leadership components, hypotheses, the relationship between leadership and corruption, corruption measurements, corruption indicators, and sources in the context of national government. It also includes forms of corruption, costs of corruption, and historical leadership-corruption evidences. 1. Introduction Understanding the drivers of better leadership styles or management is crucial to developing policies that can improve the quality of administration practices and, in turn, raise a country’s productivity. Their leadership style also determines how leaders develop their strategy, implement plans, and respond to changes while managing stakeholders’ expectations and their team’s well- being. Leadership has a direct cause-and-effect relationship with organizations and their success. Leaders determine values, culture, tolerance for change, and employee motivation. They form institutional strategies, including their implementation and effectiveness. Leadership style affects nations and organizations by affecting morale, productivity, speed of decision-making, and employee metrics. Corruption exists in all societies, and some would argue that you could minimize it but never eliminate it. Despite this, a democratic system of government has some built-in mechanisms that keep corruption in check. Democracy is defined by USIP as “a state or community in which all members of society partake in a free and fair electoral process that determines government leadership, have access to power through their representatives, and enjoy universally recognized freedoms and liberties.” It is generally accepted that strong democracies have lower levels of corruption, largely because those who are ruled give the government legitimacy to govern, and therefore the citizens can hold the government to greater transparency in its operations. However, even when a state has free and fair elections and calls itself a democracy, it may still be emerging from conflict, transitioning from authoritarian rule, or guided by loyalties to one’s own clan, tribe, or interest group. A state may also have a political culture that lends itself to corrupt practices. “When authoritarian control is challenged and destroyed through economic liberalization and political democratization but not yet replaced by democratic checks and balances and legitimate and accountable institutions, the level of corruption will increase and reach a peak before it is reduced with increasing levels of democracy.
  • 24. 2. Review of Leadership styles 2.1 Basic types of leadership styles Choosing a leadership style that works for you can make you a more effective leader. Whether you manage a large or small team, your leadership style heavily impacts how your team sees you. Here are a few points that can help you get started. Transformational leadership Leaders who adopt this approach strive to inspire their followers to achieve more than they ever thought possible by tapping into their potential. This type of leadership can be highly effective in organizations looking to make significant changes or transformations. Some of the key characteristics of transformational leadership include: A focus on the future: Transformational leaders always look ahead and think about what needs to be done to achieve the organization’s goals. They inspire their followers to do the same. A focus on change: Transformational leaders are comfortable with change and understand it is necessary for organizational success. They work to ensure their followers are comfortable with change and can adapt to it. A focus on people: Transformational leaders see the potential in every one of their followers. They strive to develop their followers’ individual strengths and abilities so that they can reach their full potential. Transformational leaders are able to inspire their followers to achieve more than they ever thought possible by tapping into their individual potential. They focus on the future and work to ensure that their followers are comfortable with change. Additionally, they see the potential in each and every one of their followers and strive to develop their individual strengths and abilities. This approach can be extremely effective in organizations that are looking to make major changes or transformations.. Transactional Leadership Transactional leadership, often referred to as managerial leadership, is a leadership style that relies on rewards and punishments. This leadership style clearly emphasizes structure, assuming individuals may not possess the motivation needed to complete their tasks. With this reward-based system, a leader sets clear team goals or tasks. Leaders also clarify how their teams will be rewarded (or punished) for their work. Rewards can take many formats but
  • 25. typically involve financial recompenses, such as pay or a bonus. This “give and take” leadership style is more concerned with efficiently following established routines and procedures than making transformational organizational changes. Transactional leadership establishes roles and responsibilities for each employee. However, it can lead to diminishing returns if employees are always aware of how much their effort is worth. Therefore, incentives must be consistent with company goals and supported by additional gestures of appreciation. Participative Leadership Sometimes referred to as democratic leadership, participative leadership is a leadership style that encourages leaders to listen to their employees and involve them in the decision-making process. This leadership style requires leaders to be inclusive, utilize good communication skills, and, crucially, be able to share power/responsibility. When a leader adopts a participative leadership style, this encourages collaboration through accountability. This often leads to a collective effort of a team to identify problems and develop solutions instead of assigning individual blame. This leadership style has historically been prevalent and utilized by many leaders in many organizations. Spontaneous, open, and candid communication is often associated with a participative leadership style. Remote working or virtual teams can make this particularly challenging to maintain. Participative leadership is often favoured as it helps to build trust with employees. Empowering them and encouraging them to share their ideas on essential matters, demonstrating their value to a team
  • 26. Servant Leadership Servant leadership is a leadership style that puts the needs of others first. It emphasizes creating strong relationships with those around you and focuses on enabling them to reach their full potential. As a leader, it requires focusing on understanding the people you are working with and developing their abilities, while also setting a good example and understanding their personal goals. At its core, servant leadership is about ethical decision making; if one follows this model they will be more likely to make decisions based on what is right for everyone involved, rather than just benefitting a select few. This approach fosters an environment where creativity and problem-solving thrive as team members feel empowered to suggest new solutions and build upon each other’s ideas. Furthermore, following the principles of servant leadership can result in improved communication between all involved parties – from senior management to front-line employees. By taking into account the opinions of subordinates, leaders can prevent any potential conflicts while maintaining both healthy relationships and peaceful work environments. Ultimately, these qualities help create a stronger sense of loyalty amongst team members which consequently leads to increased productivity overall. Democratic Leadership This Style is also known as participative. Leaders with participative leadership style, include one or more of their subordinates in the decision making process, such as what exactly needs to be done. However these leaders keep the final decision making authority to themselves. This is a good way of increasing employee’s motivation and if used properly always have positive effects on the normal business of the organization. This style is best where the leader knows only about a part of the problem needs further information in order to decide the how to solve it. In this style also leader produce high quality and high quantity work for long period of time as well staffs likes the trust they get and respond with faithfulness and high morale. The leader develops plans to help staff evaluate their own performance. This style gives permissions to establish goals, encourages growing on the jobs and promotions, recognizes and encourages to achievement among the employees. This style should be used when leaders wants to keep staff informed about matters which affect them and wants to share decision making and problem solving by staff. And should not be used when there is not enough time to get everyone’s input also when cannot afford mistakes and the staff safety is critically concerned.
  • 27. Delegative Leadership Often referred to as “laissez-faire,” a delegative leadership style focuses on delegating initiative to team members. This is generally known as one of the least intrusive forms of leadership; this translates to “let them do.” This is therefore considered a very hand-off leadership style. Leaders who adopt this style have trust and rely on their employees to do their jobs. They don’t micromanage or get too involved in providing feedback or guidance. Instead, delegative leaders allow employees to utilize their creativity, resources, and experience to help them meet their goals. Coaching Leadership style Leaders focus on helping other staff in developing their skills and abilities. The coaching leader works closely with the other staff in order to make sure that they have all the required skills to carry out the job. This style is best where all the people already understand their weaknesses and are receptive to all the ideas for improvement. Affinitive Leadership style This style is most effective in boosting the team moral and motivation, by giving the employees a sense of recognition and affiliation in the process of decision making. This is almost same as the democratic style of management but relies more on praising and appreciating the hardworking staff; unfortunately, poor performance may also goes without reprimand. Coercive Leadership style This style of leadership is based in the concept of command and control where the leader commands and subordinates only follow the orders. This style can be damaging some times as it causes decrease in the motivational level of the employees. This style is most effective where the company needs a complete changeover regarding its culture and ways of carrying out business, and during disasters or dealing with underperforming employees – usually as a last resort. Autocratic Leadership Authoritative leaders are often referred to as visionary. Leaders who adopt this style consider themselves mentors to their followers. Not to be confused with authoritarian leadership, authoritative leadership emphasizes a “follow me” approach. This way, leaders chart a course and encourage those around them to follow.
  • 28. Leaders who display authoritative traits tend to motivate and inspire those around them. They provide overall direction and provide their teams with guidance, feedback, and motivation. This promotes a sense of accomplishment or achievement. Also it style relies heavily on getting to know each team member. This allows a leader to provide guidance and feedback on a more personalized level, helping individuals to succeed. This means authoritative leaders need to be able to adapt, particularly as the size of their team grows. Authoritative leadership is very hands-on, but leaders must be cautious not to micromanage. This is a tendency with this style, which can be overbearing for team members and create negative sentiments. Bureaucratic Leadership This leadership styles is followed by certain rules or standards which has been set already. In this style everything is done accordingly to ensure safety and / or accuracy. We can find this style of leadership where the situation of work is bit dangerous and specific sets of procedures are compulsory to make sure and safety. The bureaucratic leadership’s best examples in jobs are construction work. This style is most useful when staff is performing the routine tasks again and again. Where staff needs to understand particular standards and procedures. In this style some safety training are conducted and this is commonly followed staff where staff performing tasks that require handling cash. This style should not be used when employee’s habits cannot be changed.
  • 29. 2.2 Factors of leadership According to Rachel Ovuezirie Atomatofa (2020), there are four factors in leadership. As we know, leadership is a process that involves a relationship, and therefore it cannot exist in isolation. The leadership has no subsistence if there is no follower(s) and a situation. The relationship between leadership, followership, and the situational and organizational context within which the interactions (communication) between leaders and followers occur constitute the leadership process. Figure 1 Factors affecting leadership Leaders: Hence, leadership is a transactional event that takes place between leader and the led. It affects both the leader and the led in the process of interaction. It is not a one-way event, but it is an interactive event. The fundamental starting point for a leader is to have a good understanding of human nature, such as needs, emotions, and motivation. The leader must have high levels of self-awareness; build an honest understanding of who he is, what he knows, and what he can do. Each leader needs to establish interpersonal relations with members, inspire them, guide them, and help them to march towards the goals. Followers
  • 30. The role of a follower is not a simple one. It does not just mean following directions or blindly accepting everything a leader says. Good followership is characterized by active participation in the pursuit of organizational goals. There are five types of followers Survivors: Right in the middle of the scale, these people are adept at surviving change. They are able to adapt and conform to the situations around them, whether this means stepping up to take on an important task or quietly staying in the background. Sheep: These passive people do not think critically and do not have a strong sense of responsibility. Yes People: people are those who will readily act when told what to do but depend heavily on leaders for guidance. They do not tend to be proactive. Alienated Followers: These independent critical thinkers are not proactive in their roles. They can effectively carry out their roles, but there is often an undertone of dissatisfaction that prevents them from fully embracing their work and contributing to their fullest potential. Effective Followers: These independent critical thinkers follow through enthusiastically. Effective followers can succeed without leadership but respond to it well, making them ideal independent employees who also work well in teams. Communication The leader listens closely to people at work, organizes, and clearly presents information both orally and in writing. Communicate with all personnel with a sense of mutual understanding and mutual loyalty to the aims of business objectives, Generate enthusiasm for projects, and inspire working towards their completion. A leader is always contributing to the group by advancing useful suggestions, tracking progress, providing direction and guidance where necessary. Leaders demonstrating communication skills are both good speakers and listeners. The leader listens closely to people at work, organizes, and clearly presents information both orally and in writing. Through their words, they can help keep the workforce motivated and committed. They also listen to their followers and ask questions when they want to make sure they have a good understanding of what is being expressed. Through their leadership skills, they maintain a high level of performance in their organizations, and they are able to help keep their workforce motivated even when faced with a seemingly impossible situation. What and how the leader communicates either positively build or negatively harm the relationship between the leader and
  • 31. his employees. Good leaders communicate with all personnel with a sense of mutual understanding and mutual loyalty to generate enthusiasm for projects and inspire working towards their completion. Situation All situations are different. A methodology or approach that is successful in one situation will not always work in another. The leader must use his judgment to decide the best course of action and the leadership style needed for each situation. A successful leader is sensitive to the influences in various situations and they are in a position to determine the right style of leadership to be followed in handling various situations. The situational forces that have a bearing on the style of leadership include the style of the leader's supervisors, complexity and demands of the job, and pressure of time (e.g., emergency or crises vs. normal). Lastly, the forces in the organization system which determine the style and effectiveness of the leadership include division of work, organization structure, and the production technology being adopted by the organization. Therefore, the structure of the organization may determine the kind of leadership to be adopted.
  • 32. 3. Concept of corruption Corruption comes from a Latin word ‘corrupter’ which means to break something and during the action of corruption, the law, legal rule , a moral norm and in worse situations communities and human personalities are broken (Farida,2006). Alike on Merriam Webster’s Dictionary The noun corruption comes from Latin - com, meaning "with, together," and rumpere, meaning, "to break." Engaging in corruption can "break" or destroy someone's trustworthiness and good reputation with others. Drawing upon the concepts of corruption in calculated formula, a corruption equation can be set out as follows (Klitgaard 1998): Equation 1 Klitgaard corruption formula. C= R + D – A C stands for corruption, R for economic rent, D for discretionary powers, and A for accountability. The equation states that the more opportunities for economic rent (R) exist in a country, the larger will be the corruption. Similarly, the greater the discretionary powers (D) granted to administrators, the greater will be the corruption. However, the more administrators are accountable (A) for their actions, the less will be the corruption, and hence a minus sign in front of A. Economic rent: The concept of economic rent (or monopoly profit) occupies a central place in the literature on the subject of corruption. Economic rent arises when a person has something unique or special in his possession. This something special can be a luxury condominium in a posh neighbourhood, a plot of land in the central business district of the city, a natural resource like an oil well, or even some pleasing personal traits such as beauty and charm (U Myint2000). A person who owns such a special asset can charge a more than normal price for its use and earn economic rent or monopoly profit. Hence, the bureaucrat who has a monopoly of typing, stamping and processing the letter can use his official position to acquire economic rent from his clients. Rules and regulations are required to maintain a sense of fair play; to prevent disastrous conflicts; keep greed, predatory and other unsavoury human instincts in check; minimize socially undesirable consequences; and generally to ensure that players and referees abide by certain accepted standards of moral conduct and good behaviour. Naturally, for rules to be properly observed, they must be transparent, that is, must be set out clearly and made known in advance to all concerned, so that they can be understood and obeyed by participants in the game.
  • 33. The game cannot proceed in an orderly way if players are uncertain about what constitutes a foul for which they will be penalized, or the referee is not sure when to blow the whistle. Aside from being clear, rules must also be applied in an impartial manner with respect to all players and must be consistent and not be subject to frequent and arbitrary changes. Obviously, the game will become unplayable and players will pack up and leave, if rules keep changing as the game proceeds and the referee keeps blowing his whistle whenever he feels like it. Discretionary powers: Discretionary powers represent another key concept in discussing corruption. They arise because it is not possible to devise rules and regulations that are watertight and foolproof and will take care of all contingencies that can crop up in trying to control or direct an economic activity. Hence, some flexibility and discretionary powers will have to be given to administrators in interpreting and implementing rules. Even in a football match, the referee is granted discretionary powers and has considerable freedom to exercise his good judgment in reaching decisions such as in awarding a penalty kick or showing a yellow or a red card to an offending player. These decisions could prove decisive in determining the final outcome of the game. In short, regardless of how ingenious we are in designing rules and regulations, there must always be some room for personal judgment and freedom to exercise a measure of discretion on the part of officials administering and implementing the rules; or else if everything has to be done “by the book”, general paralysis will set in and the whole administrative machinery will come to a grinding halt. Accountability: A few remarks about accountability are necessary as it occupies an important place in considering the corruption question. Accountability has to do with the fact that for proper observance of rules and regulations, those administering the rules must be held responsible and accountable for their actions. For example, it is normal practice in most countries to request assistance from parents to help finance desirable projects in their children’s school. Usually such projects are well publicized, and their objectives, benefits, work plan and estimated costs are explained in detail to parents. Periodic progress reports are provided when the project is under implementation. When something appears questionable, improper, or inaccurate in the information and accounts presented, the authorities can be called upon to provide an explanation to clarify the matter and to take corrective action and make amends, as necessary. Those in charge are obliged to respond to such queries so that doubts are cleared, and remedial or disciplinary actions are taken to the satisfaction of all concerned.
  • 34. 3.1. Causesof Corruption Corruption destroys morale, undermines democracy, represses economic growth, and makes inequality, poverty, social division, and the environmental problem worse. According to a 2017 survey study, the following factors have been attributed as causes of corruption Greed of money: A strong desire to obtain wealth or money, often at the expense of ethical, moral, or legal considerations. Desires: Cravings or strong wishes to attain or acquire specific things, experiences, or outcomes, either material or immaterial. Higher levels of market and political monopolization: A situation where a single entity, individual, or group has significant control over a market or political process, resulting in decreased competition, potential for abuse of power, and reduced options for stakeholders. Low levels of democracy, weak civil participation, and low political transparency: Indicators of poor governance, characterized by limited citizen participation, restricted access to information, and little accountability leading to reduced transparency in public processes. Higher levels of bureaucracy and inefficient administrative structures: A complex, slow, and often redundant system with excessive layers of management, decreased flexibility, and increased costs that can hinder effective performance and decision-making. Low press freedom: Limited or restricted freedom of media outlets to report the news and express opinions without censorship or fear of reprisal, leading to a lack of credible information and increased risk of corruption. Low economic freedom: Indicators of limited private enterprise, government intervention, and regulation that impact economic growth, competition, and innovation. Large ethnic divisions and high levels of in-group favouritism: Factors that can lead to social exclusion and increased inequality, resulting in reduced social cohesion, increased rivalries, and greater susceptibility to conflict and corruption. Gender inequality: The unequal treatment of individuals based on their gender, often characterized by differential access to resources, rights, and opportunities, and leading to increased vulnerability to various forms of corruption.
  • 35. Poverty: A state or condition of insufficient material resources, often characterized by inadequate food, housing, or healthcare, that can lead to increased vulnerability to corruption or illegal activity. Political instability: A situation of political uncertainty or risk caused by changes or challenges to political power, institutions, or processes that can lead to increased susceptibility to corruption, conflict, or violence. Weak property rights: A situation where individuals or groups have limited protection or control over their assets, often resulting in reduced incentives for investment or productivity and increased vulnerability to corruption. Contagion from corrupt neighboring countries: A situation where corruption practices in neighboring countries are imported or spread through interconnected systems, often resulting in increased or entrenched forms of corruption. Low levels of education: Indicators of poor or limited access to formal education or functional literacy, often leading to reduced economic opportunities, social exclusion, and limited capacity to participate effectively in democratic and governance processes.
  • 36. 3.2 Effects of Corruption The effects of corruption are wide-ranging. Some of these effects are obvious, while others require explanation. They include: Economic loss and inefficiency Although obtaining exact figures on the economic costs of corruption is difficult, a 2016 report from the International Monetary Fund (IMF) estimated the cost of bribery alone to be between $1.5 to $2 trillion per year. This represents a total economic loss of approximately 2% of global GDP. Yet it does not take into account the economic cost of all other forms of corruption. Regarding fraud, money laundering and tax evasion, finally, beyond deadweight economic loss, there is economic inefficiency to consider. When jobs (or contracts) are given to people (or companies) who offer bribes or share a personal connection, this occurs to the detriment of competition. The result is that more qualified candidates and firms are turned down. The more widespread such practices are, the more inefficient the economy becomes. Corruption in developing countries may cause underdevelopment. This can occur when international economic and humanitarian initiatives are derailed as funds disbursed from loans and aid are embezzled or handed out to inferior contractors who have won their bids through corrupt means (kickbacks, bribery, nepotism, etc.). Furthermore, investment in physical capital and human capital will reduce as resources are diverted from their most beneficial use. Poverty and inequality Corruption is generally not the weapon of the weak, according to the World Bank (2019), more than 50% of the population of the oil-rich country live in extreme poverty. This example shows that as political and economic systems are enlisted in the service of corrupt actors, wealth is redistributed to the least needy sources. Mechanisms such as political representation and economic efficiency are both compromised by self-dealing and secret exchanges. Under conditions of corruption, funding for education, health care, poverty relief, and elections and political parties' operating expenses can become a source of personal enrichment for party officials, bureaucrats and contractors. Social programmes and the redistributive potential of political systems suffer accordingly. A key result of all the instances named above is a state of unequal opportunity in which advantages arise only for those within a corrupt network. Personal loss, intimidation and inconvenience
  • 37. When people experience corruption, it is rarely a positive experience. A bribe must be paid to receive medical attention, obtain a building permit, pick up a package, or enjoy phone services. A judge rules against a party, not based on the facts of the case, but because the opponent paid a bribe, knows a power broker, or comes from the same racial or ethnic background. A person is beaten, detained or subject to a higher fine because he or she refuses to pay a bribe solicited by a police officer. Retirement funds are lost to fraudsters or tied up in a money-laundering scheme. While the victims of corruption suffer personal loss, intimidation and inconvenience, those who perpetrate corrupt acts and schemes tend to experience personal gain, a sense of superiority and greater convenience - pending enforcement of the law, that is. Public and private sector dysfunctionality The cumulative effect of individual corrupt acts is public dysfunctionality. Whether offered by the public or private sectors, the quality of goods and services decrease, and the process of obtaining them becomes more expensive, time consuming and unfair. If bribes can successfully be offered to police, doctors, and civil servants, then those who are most successful at extracting these funds get ahead to the detriment of more honest colleagues and competitors who may perform better on merit. Moreover, corporations lose the incentive to offer better services and products if they can undermine competitors through obtaining political favours. State-owned enterprises and industries are structured to enrich government officials instead of pursuing innovation and efficiencies. This can lead to the loss of intrinsic motivation within organizations. Workers and managers are demoralized. People begin to doubt the value of hard work and innovation. Rigged economic and political systems What is described as dysfunctional above is actually functional and profitable for corrupt actors. Whether falling under the label of political cronyism, crony capitalism, political party cartels, oligarchy, plutocracy and even kleptocracy, widespread patterns of private and public corruption construct social systems that are rigged in the private interest. Citizens with strong ethical principles (and citizens who lack significant funds, connections, favours to dispense, "hard power" over others such as guns or private enforcers) lose representation, influence and power.
  • 38. Impunity and partial justice When corruption pervades the justice system, people can no longer count on prosecutors and judges to do their jobs. The powerful may escape justice. In addition, citizens, especially those with few resources or few powerful allies, may be unfairly accused of crimes, deprived of due process, and wrongly imprisoned. Rising illiberal populism Corruption increases inequality, decreases popular accountability and political responsiveness, and thus produces rising frustration and hardship among citizens, who are then more likely to accept (or even demand) hard-handed and illiberal tactics. Deal with those tactics shift the blame for economic insecurity and political decline onto immigrants or other minority groups, and onto economic and political elites, who must, the theory goes, swiftly and decisively. The rule of law and liberal values of tolerance and human dignity then become obstacles to needed change. Organized crime and terrorism Nefarious elements in society thrive as proceeds can be laundered, funding disguised, and judicial officials and politicians corrupted through bribes (including gifts, favours and other benefits). Levels of violence, illegal drugs, prostitution, sexual slavery, kidnapping and intimidation rise accordingly. The causal arrow goes in both directions. Not only does organized crime cause corruption, but opportunities for corruption left open by a weak, negligent or incapable State can also lead to organized crime. Diminished state capacity Even if citizens were to adamantly demand that the problems listed above be addressed, corruption undermines the power of politics. For example, to the extent that bribery, trading in influence and state capture are widespread, political systems become incapable of addressing social problems whose resolution would threaten vested interests. Naturally, this is never acknowledged as such from within - state incapacity may manifest in a great many distracting and misleading ways, such as wedge issues, political party restructuring, the emergence of scandals and overwhelming outside issues that detract from structural problems, and so on. Under conditions of state capture, political arbitrage can be expected to occur in a strategic fashion. Issues will be played off against each other in order to frustrate systemic reforms. Moreover, as
  • 39. Della Porta and Vannucci (2005) argue, corruption compromises the ethos of public service and changes political culture to render meaningful, public-spirited reforms virtually unthinkable. Increasing polarization and unrest When corruption, in particular state capture, becomes the norm, this can lead to polarization among citizens: those in support of corrupt regimes (because of kickbacks and handouts) versus those opposed to them. In the presence of diametrically opposed groups in society, compromise and reasoned discussion diminish. Policy is judged not based on ideology or a project's inherent merits, but on who the policy proponents are and what benefits competing networks can reap. Human rights violations Corruption and human rights are closely associated with each other. Corruption is detrimental to all areas and aspects of human well-being, in particular the human rights held by all individuals. The concept of human rights is equally complex. Human rights are generally grouped into three categories, also referred to as “generations” to reflect the order in which they were conceived and recognized. “First generation” rights are civil and political rights, such as the right to a fair trial and the right to participate in the political process. “Second generation” rights are economic, social and cultural rights, such as the right to health and the right to education. “Third generation” rights are collective or group rights, such as the right to self-determination and the right to development. The concept of human rights generations is helpful for understanding the impact of corruption on individuals and societies. The grouping of rights into categories or generations, however, does not imply that certain rights are prioritized over others. On the contrary, human rights are considered indivisible and do not have a hierarchical order. This is discussed in more detail on the website of the United Nations Office of the High Commissioner for Human Rights (OHCHR). The strong link between corruption and human rights violations is emphasized by numerous scholars, practitioners and institutions. Some scholars have studied the correlation between human rights abuses and the spread of corruption (Koechlin and Carmona, 2009, p. 310; Ngugi, 2010; Peters, 2018). This correlation is also echoed by United Nations Global Compact Africa Chief, Olajobi Makinwa: “When there is corruption, human rights disappear” (Transparency International, 2019). Addressing the United Nations Security Council in 2018, the Secretary-General of the United Nations, António Guterres, emphasized that corruption “deprives people of their rights, drives away foreign investment and despoils the environment. Corruption breeds disillusion with government and governance – and is often at the root of political dysfunction and social disunity.” As a result, human rights bodies have been increasingly paying
  • 40. attention to the negative correlation that exists between corruption and the enjoyment of human rights, even if establishing a causal relationship between corruption and human rights violations requires a case-by-case, evidence-based analysis. Armed conflict and atrocity crimes The diminished State capacity and development, brought about by corruption, can lead to insecurity and even armed conflict (see, e.g., World Bank, 2011; World Bank, 2017). Indeed, corruption has been recognized as a destabilizing factor and ultimately a "driver of conflict" (USIP, 2010, p. 7). Although the causal link between corruption and atrocity crimes (including genocide, war crimes and crimes against humanity) may be hard to prove, transitional justice mechanisms have identified corruption as a root cause of conflict and atrocity. Public frustration and cynicism People lose trust in leaders, in social systems (public institutions) and sometimes even in society and ethics, itself when they sense that corruption is widespread and corrupt actors are not being held accountable. When political non-accountability increases, such perceptions persist for protracted periods and political participation diminishes. Moreover, public frustration and the sense that corruption is widespread can in turn pave the way for citizens themselves to take part in corrupt transactions. In other words, social norms could encourage corrupt behaviour as people tend to think that "if everybody is doing it, I might as well do it too." (Köbis, 2018). The effects of corruption mentioned above can be categorized along the following lines: economic, political, moral or psychological, humanitarian, ecological, security-related, and so on. To help us gain a better understanding of corruption, the following section discusses some of the deeper meanings of corruption. Causes for Conflicts Corruption fuels conflict by undermining the rule of law, worsening poverty, facilitating the illicit use of resources and providing financing for armed conflict (United State Institutes of Peace2010). Diamonds, oil, copper, drugs, and ores of many sorts are examples of resources whose illicit exploitation requires government authorities to look the other way, judges to ensure impunity and buyers to feel safe from scrutiny. Government contracts and trafficking in women and children are also important sources of corrupt gains. The nexus between illicit wealth and political or military power is one that often contributes to war and inhibits peace processes. It can finance insurgency and block the establishment of legitimate authority accountable to citizens.
  • 41. 3.3 Methods of Corrupting In systemic corruption and grand corruption, multiple methods of corruption are used concurrently with similar aims. Bribery involves the improper use of gifts and favours in exchange for personal gain. This is also known as kickbacks or, in the Middle East, as baksheesh. It is a common form of corruption. The types of favours given are diverse and may include money, gifts, real estate, promotions, sexual favours, employee benefits, company shares, privileges, entertainment, employment and political benefits. The personal gain that is given can be anything from actively giving preferential treatment to having an indiscretion or crime overlooked. Bribery can sometimes form a part of the systemic use of corruption for other ends, for example to perpetrate further corruption. Bribery can make officials more susceptible to blackmail or to extortion. Embezzlement, theft and fraud Embezzlement and theft involve someone with access to funds or assets illegally taking control of them. Fraud involves using deception to convince the owner of funds or assets to give them up to an unauthorized party. Examples include the misdirection of company funds into "shadow companies" (and then into the pockets of corrupt employees), the skimming of foreign aid money, scams, electoral fraud and other corrupt activity. Graft The political act of graft is when funds intended for public projects are intentionally misdirected to maximize the benefits to private interests of the corrupt individuals. Extortion and blackmail While bribery is the use of positive inducements for corrupt aims, extortion and blackmail centre around the use of threats. This can be the threat of physical violence or false imprisonment as well as exposure of an individual's secrets or prior crimes. This includes such behavior as an influential person threatening to go to the media if they do not receive speedy medical treatment (at the expense of other patients), threatening a public official with exposure of their secrets if they do not vote in a particular manner, or demanding money in
  • 42. exchange for continued secrecy. Another example can be a police officer being threatened with the loss of their job by their superiors, if they continued with investigating a high-ranking official. Influence peddling Influence peddling is the illegal practice of using one's influence in government or connections with persons in authority to obtain favours or preferential treatment, usually in return for payment. Networking Networking (both Business and Personal) can be an effective way for job-seekers to gain a competitive edge over others in the job-market. The idea is to cultivate personal relationships with prospective employers, selection panelists, and others, in the hope that these personal affections will influence future hiring decisions. This form of networking has been described as an attempt to corrupt formal hiring processes, where all candidates are given an equal opportunity to demonstrate their merits to selectors. The networker is accused of seeking non-meritocratic advantage over other candidates; advantage that is based on personal fondness rather than on any objective appraisal of which candidate is most qualified for the position Abuse of discretion Abuse of discretion refers to the misuse of one's powers and decision-making facilities. Examples include a judge improperly dismissing a criminal case or a customs official using their discretion to allow a banned substance through a port. Favouritism, nepotism and clientelism Favouritism, nepotism and clientelism involve the favouring of not the perpetrator of corruption but someone related to them, such as a friend, family member or member of an association. Examples would include hiring or promoting a family member or staff member to a role they are not qualified for, who belongs to the same political party as you, regardless of merit.
  • 43. 4. Building Ethical Society An ethical society is a community that prioritizes moral values, upholds ethical principles, and seeks to create a just and humane environment for its members. It encompasses individuals, organizations, and institutions that strive to uphold integrity, fairness, compassion, and respect in their actions and interactions. The concept of an ethical society is rooted in the belief that ethical conduct is essential for both personal growth and societal progress. A moral society goes beyond encouraging moral conduct on a personal level. It entails developing institutions, rules, and regulations that place a premium on moral principles. For instance, crucial elements of an ethical society include laws and regulations that demand transparency, forbid corruption, and uphold human rights (Trevino and Nelson, 2014). In this society, helping others, advancing the common good, and upholding moral principles are highly valued by both individuals and institutions. Treating others with love, kindness, and compassion is one of the fundamental tenets of a pual-based ethical society. This entails extending grace to those who have sinned, displaying forgiveness to those who have erred, and upholding justice and fairness in all dealings (Micah 6:8). In an ethical society, there is also a strong sense of accountability, where people and organizations take ownership of their deeds and make amends when necessary. In addition, a pual-based ethical society values stewardship, which entails resource management that supports sustainability and the welfare of future generations (Genesis 1:28). An ethical society encourages moral conduct, social justice, and civic engagement, which can result in a more just and equitable world. Sweeney (2008) emphasizes the significance of ethical leadership and culture in promoting a culture of integrity and accountability within organizations in "The Importance of an Ethical Culture in the Workplace.” A society that upholds ethics fosters ethical leadership and culture, fostering a climate where people are encouraged to act morally. According to Brown and Trevio (2014) make the case that an ethical society encourages ethical behavior by fostering a culture where people feel valued, respected, and supported in "Creating Ethical Workplaces.". Greater trust, cooperation, and social cohesion may result from this, which may encourage both social stability and economic growth.
  • 44. 4.1 Causes for unethical society People act unethically in various aspects of life is complex and multifaceted. While there is no single answer that applies to every situation, the following factors can contribute to unethical behavior: Inner force or Demonic possession: - The majority of research on unethical behavior focuses on psychological, social, and cultural factors. The Bible teaches that human beings are created in the image of God (Genesis 1:27) and have a spiritual aspect to their being. Unethical behavior is seen as a departure from God's moral standards and a violation of the relationship with God. It can reflect a corrupted or sinful state of the heart and soul, leading to a separation from God and a need for repentance and redemption. In Luke 18:19, Jesus says, “Why do you call me good? No one is good—except God alone.” This passage is often interpreted to mean that only God is truly good, and that human beings, while capable of doing good deeds, are not inherently good. This belief is based on the Christian doctrine of original sin, which holds that all human beings are born with a sinful nature and are in need of redemption. After sinful nature died people keeping to live by un-renewed mind, so inner force which is sinful nature and un renewed mind setup changes people to walk ethically. Lack of awareness or understanding: Sometimes, individuals may not be fully aware of the ethical implications of their actions or may not understand the ethical standards that should guide their behavior. Personal gain or self-interest: People may engage in unethical behavior when they believe it will benefit them personally or advance their own interests, even if it means disregarding ethical principles. Pressure or influence: External factors, such as peer pressure, organizational culture, or societal norms, can play a significant role in influencing individuals to act unethically. The fear of consequences or the desire for acceptance and approval can lead people to compromise ethical standards. Moral disengagement: Individuals may engage in cognitive processes that allow them to distance themselves from the moral implications of their actions. This includes rationalizing unethical behavior or minimizing its consequences, thereby making it easier to engage in such behavior. Lack of accountability: When individuals believe that their unethical actions will go unnoticed or that they will not face consequences, the likelihood of engaging in unethical behavior increases.
  • 45. Inadequate ethical education or guidance: A lack of proper ethical education or guidance can contribute to individuals not having the necessary tools or knowledge to make ethical decisions or understand the importance of ethical behavior. Organizational factors: Unethical behavior can be influenced by the culture, values, and practices within an organization. If an organization prioritizes short-term gains or fails to promote ethical conduct, individuals within that organization may be more likely to act unethically. Cross-cultural differences: Cultural norms and values can influence what one society or group considers ethical versus unethical. Ethical behavior may vary across cultures, making it challenging to define and maintain consistency in ethical standards. It is crucial to note that not all individuals act unethically, as many people strive to uphold ethical standards in their personal and professional lives. However, understanding the underlying factors that contribute to unethical behavior can help organizations and societies implement strategies to promote ethical conduct and mitigate unethical actions.
  • 46. 4.2 Arguments in Build Ethical Society There is a close connection between ethical leadership and ethical societies. Here are two arguments. First Argument. Second argument: - Prioritizing developing ethical leaders first: On the other hand, proponents of prioritizing the development of ethical leaders argue that leaders have a significant impact on shaping organizational and societal values. By focusing on developing ethical leaders, there is an opportunity to create a ripple effect through their influence on those they lead. According to Ciulla (2014), leaders play a crucial role in modelling ethical behavior and setting the tone for an organization or community. Consequently, prioritizing ethical leadership development can have a broader impact on the ethical climate compared to solely focusing on building an ethical society. Studies and other evidence point to the interdependence of moral leaders and moral societies. While ethical societies can support and strengthen ethical leadership, ethical leaders can create ethical cultures within their organizations. Ethical societies and ethical leaders can both contribute to the creation of a more just and equitable world by fostering ethical behavior and placing a high priority on moral principles. According to Ciulla's "The Ethics of Leadership" from 2005, moral leadership is characterized by a focus on moral principles and a dedication to doing what is right. Ethical leaders can influence and encourage others to follow their example by putting moral conduct ahead of personal gain, thereby fostering the development of more ethical societies Second Argument: Prioritizing ethical society building first: Some argue that focusing on building an ethical society should take precedence. By instilling ethical values and promoting ethical practices in society as a whole, there is potential for a positive influence on all individuals, including leaders. Proponents believe that an ethical society can create a virtuous cycle where individuals are socialized to act ethically from an early age, and this foundation can then shape the behavior of leaders within that society. According to Treviño and Nelson (2016), an ethical society can serve as a supportive environment for leadership development, providing a normative framework and shared values that shape leadership behavior.
  • 47. 4.3 Building Ethical Society to Combat Corruption Combating corruption requires creating a moral society. Societies with little accountability, transparency, or ethical principles tend to have higher levels of corruption. On the other hand, an ethical society is one where the rule of law is respected, people and organizations behave honorably, and there is a culture of accountability and transparency. This type of society is much less prone to corruption (Transparency International). There is a direct link between ethical standards and the prevalence of corruption, according to numerous studies. Arinaitwe et al.'s study is one illustration. The public sector corruption and ethical leadership were found to be negatively correlated by (2019). Researchers came to the conclusion that "ethical leaders create a culture of accountability and transparency, which fosters ethical behavior and reduces opportunities for corruption" . In a similar vein, Hussain et al. (2016) discovered that a lack of moral principles was a significant factor in predicting corruption in the private sector. Companies that explicitly state their ethical values and incorporate them into their operations are less likely to engage in corrupt behavior, according to the study (p. 207). A culture of accountability and transparency must be established, and the rule of law must be upheld in order to build an ethical society. These are all essential elements in the fight against corruption at all scales, from individual behaviors to institutional norms (Transparency International, n.D.). D.). 4.4 World Experiences in Building Ethical Society The significance of ethical leadership in creating an ethical society is shown by these studies. Ethical leaders can foster a culture of ethical awareness, encourage trust, transparency, and accountability, and motivate followers to act morally. Ethical leaders can develop a society that values justice, decency, and honesty by doing this. In Danish public organizations, ethical leadership was linked to employee well-being, job performance, and organizational citizenship behavior, according to a study by Pedersen and Neergaard (2019). According to the study, ethical leadership can support a favorable work environment, boost employee engagement, and foster a culture of respect and trust. Rwanda: In a research project by Palazzo et al. The Rwandan society was rebuilt after the 1994 genocide, and it was discovered in (2019) that ethical leadership was essential. According to the
  • 48. study, ethical leadership can foster societal healing, promote transparency and accountability, and help to rebuild trust. South Korea: Lee and Park's (2018) research revealed that in South Korea, ethical leadership was positively correlated with workers' job satisfaction and organizational commitment. The study also discovered that ethical leadership was crucial in promoting ethical behavior at all organizational levels. Norway: According to a 2018 study by Johannessen and Olsen, ethical leadership was associated with employees' perceptions of the ethical climate in Norwegian organizations. According to the study, moral leaders can encourage an environment of trust and openness while fostering a culture of ethical awareness. U.S.: A study by Yukl et al. (2013) discovered that in the United States, ethical leadership was positively correlated with followers' satisfaction, engagement, and performance. According to the study, moral leaders foster moral behavior, foster a culture of trust, and encourage their followers to behave honorably. New Zealand: According to a study by Einarsen and Skogstad (2015), ethical leadership was linked to fewer instances of unethical behavior in New Zealand organizations. According to the study, moral leaders can promote an environment of openness and accountability while also fostering a culture of ethical awareness.
  • 49. Chapter Three: Research Methodology 1. Introduction Creating an ethical society and preventing corruption are two of the most important issues facing governments and organizations around the world. In recent years, the importance of leadership in preventing corruption and implementing mitigation measures has grown. Numerous studies have looked into how various leadership philosophies affect reducing corruption and implementing policies. An investigation by Varma et al. (2013) looked at how leadership can help India fight corruption. In contrast to transactional leadership, which had little effect, the study found that transformational leadership had a significant impact on reducing corruption. The study also discovered that participative leadership was successful in minimizing corruption. Similar to this, a 2017 study by Mokhtar and Ismail looked at the influence of various leadership philosophies on Malaysia's mitigating policy. According to the study, transformative leadership, then participative leadership, were the most successful at reducing policy. The research also revealed that transactional leadership had little effect on policy mitigation. A public administration's leadership style is a crucial component, particularly when it comes to thwarting corruption and minimizing policy. This study aims to analyze the leadership style of the Addis Ababa City Administration in preventing corruption and implementing policies to mitigate it in a few different public sectors because it is not an exception to this rule. This study will use a mixed-methods research design that combines both qualitative and quantitative data collection techniques to accomplish this goal. In-depth interviews and focus groups with important stakeholders in the chosen public sectors will be part of the qualitative data collection techniques. Surveys and questionnaires will be used to collect quantitative data on the prevalence of corruption in the chosen public sectors and the efficiency of the leadership approach in addressing it.