Introduction

What seemed like a wise measure aimed at combating the non payment of
electricity in the City of Tshwane was exposed as an exceedingly expensive and
corrupt imbroglio. The DA equated this to eight Nkandlas and it is yet another
example of nefarious and noxious nature of tenderpreneurship (Brink, 2015). Brink
wrote this for Solidarity Institute report on the level of corruption in South African
Companies. This is a tip of an iceberg, as most of the corruption activities within our
society go unnoticed.

Corruption is the abuse of public or private office for personal gain. It includes acts of
bribery, embezzlement, nepotism or state capture. It is often associated with and
reinforced by other illegal practices, such as bid rigging, fraud or money laundering.
In todays business corruption is everywhere, from Early Childhood Center to
Universities, from a Spaza shop to a giant manufacturing company, from a ward
counsellor to the president of the nation. All these corrupt activities have an impact to
both business and the society.

Impact of Corruption

Increased cost of a transaction: A friend of mine went to a local police

station for finger prints and a police clearance report. The government of Zimbabwe
has pegged USD20 for a police clearance. Due to manmade bureaucracy
tendencies it takes a waiting period 14 day to produce a police report as opposed to
the standard three day. So for his report to be ready in 24 hours he had to buy
lunch for the public servant worth USD30. At the end of the transaction he had
paid USD50 for finger prints and police report. This is evident at corporate level for
example in the case of Prasa South Africa. In her report (Madonsela, 2015) said
The allegation that PRASA improperly extended the scope of a tender awarded to
Siyangena Technologies for the supply and installation of high speed passenger
gates at Doornfontein station to a national scope is substantiated. However, the total
amount of the contract was R1.95 billion and not R800 million as alleged.

Beyond the direct cost of corruption, corruption comes with some hidden cost
like litigation fees for court in the case the offender has been apprehended, tacit
encourage of other corrupt activities, poverty and distrust in the organisation and the
society.

Operational Inefficiencies: Micro economics define efficiency as optimally

allocation scarce resources to serve each individual or entity in the best possible
way, while minimizing waste. As a result to corruption investments are not allocated
to productivities economic streams, which lead to negative economic growth, hence
reduced profits to business. Funds intended for productive use leak along the
production chain due to corruption. Total foreign aid to Zimbabwe over this period
(from 1980 to 2016) has probably been in the order of US$35 billion 24 per cent of
the budget and less than half the total loss due to corrupt activities (Cross, 2016).
Loss in economic income due to corruption, at the end of the day hurt the weakness
and the most vulnerable, which are child, women and the disabled. Increase in
corruption catalyses the rate of poverty as someones resources are consumed by
the greedy. Corrupt activities leads to market inefficiencies where theory of demand
and supply is violated. The act of corruption as a rent seeking behaviour leads to
unfair competition by acting as a barrier to fair business practises.

Increase in Crime: there is a rolling waves situation which is created by

corruption. When business and the society are corrupt, the manifestation of crime is
inventible. In society societies corruption has become part of culture. A something
for something syndrome has become the order of the day. Increase in poverty due
to corruption lead people to resort to crime as a mode of survival. The moral fibre
will be broken.(Azarian et al., n.d.) Researched the relationship between crime and
corruption and found out that: a strong link between organized crime and
corruption.

Injustice: When corruption enters the judiciary system, the society

looses trust on itself, its leader and the integrity of its justice system.
Injustice means the poor and marginalized will suffer the aftermath of
corrupt activities where offenders will be set free and the offended will
face injustice. Corruption in the judiciary service is a threat to human
rights, the rule of law and democracy. The cost the society and business
faces due to judicial corruption are: decline in moral values for society and
the public, perpetuation of unfair practices, independence of the justice
system is comprised, integrity, professionalism and accountability of
judicial servants diminishes, business competition will be redefined.

The ruinous nature of corruption cannot go unnoticed, and business

as corporate citizen must take effort in uprooting the corrupt activities
within and outside its working spheres.

Promoting Anti-Corruption

The role of private and public business in fighting against corruption

is essential in the heuristic approach to compact corruption. As
responsible and ethical citizen, the business must ensure that it
participates in creating a just and corrupt free society.

Anti-corruption Policy: Companies must have an anti corruption policy

in place which should be understood and everyone must abode to the policy. All
employees should understand the ethical standards administered by these polices.
The policy must spell out the stance of the organisation toward corrupt employees
and business partners like the Emalahleni Municipalitys anticorruption policy

This policy is intended to set down the stance of the Emalahleni

Municipality as to fraud and corruption as well as to reinforce existing
systems, policies, procedures, rules and regulations of the Municipality aimed
at deterring, prevention, reaction to and reducing the impact of fraud and
corruption (EMALAHLENI MUNICIPALITY, 2011) .

Mission Statement and Values: The mission statements for

organisations tell us the purpose of the organisations existence. If
mission statement of organisation promote anti corruption as opposed to
profit motives, the effort to fight corruption. When anti corruption is
mentioned in mission and values of the company, anti corruption fight will
be more of the companys culture than its policy statement.

Investment in Anti Corruption Education: The reality is corruption cannot

be eradicated today, but in the future. The future is however built today. If companies
and government can invest in anti corruption education, the future will be free of
corruption or close to zero corruption. If kids can be taught be accountants,
engineers and laws of tomorrow, they can also be taught to ethical and shun
corruption. The dogma of anti corruption needs to be preached in todays youth. Our
education system with support of companies must champion that campaign.