This document discusses corruption, defining it as the abuse of power for private gain. It notes corruption is a global challenge that drains organizations. Corruption takes many forms and is difficult to control, particularly systemic corruption which involves rent seeking and state capture. Corruption has significant costs, misallocating resources, reducing investment and competitiveness, and exacerbating poverty. Fighting corruption requires commitment from governments, businesses, and civil society through initiatives like conventions, legal frameworks, and improving transparency and governance.

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

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

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

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

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

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

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

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

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

10. ILLEGAL WASTE DUMPING
IN ABIDJAN, 2006

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

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

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

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

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

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

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