The South African economy has been under immense pressure in recent months. Following political instability and slow growth rates, investor confidence took quite a knock. In addition to these challenges, the situation was further complicated by the fact that fraud and corruption are still rife in South Africa.
While many South Africans have been shown to be willing to turn a blind eye in the face of corruption, this has had negative effects on the economy as a whole. The public and private sector have been shown to be rife with corruption. All one has to do is take a look at daily news headlines to see how government official continue to loot state coffers, or consider the ripple effects of the KPMG scandal.
Fraud and corruption continue to contribute towards situations where previously disadvantaged remain disadvantaged.
It’s becoming increasingly evident that ethical behaviour is needed to grow the South African economy.
What can be done to grow the South African economy?
Eradication of corruption is key, along with the development of human resources.
The Anti-Intimidation and Ethical Practices Forum (AEPF) conducted its inaugural Ethical Practices Survey in 2017. The Survey found that the leadership layer is not perceived to be as ethical as it should be.
- Leaders who display ethical courage are needed.
- Small business owners are more likely to get ahead through bribery.
- Auditors, accountants and consultants should be willing to call out any wrongdoing.
- Corporate Culture should be examined in the Private Sector.
- There is little confidence in the public sector.
Why ethical behaviour is needed to grow the South African economy:
Public officials need to be held to account. Every time corrupt officials are let off the hook, tax payers’ funds are wasted.
The simple reality is that corruption creates obstacles to foreign investment. When foreign investors see that corruption is rife in a country, they are less likely to want to entrust their funds with these countries.