Poor corporate governance driving corruption, says Chikura

Chartered Secretaries and Administrators dinner last week.
“Lack of business ethics and good corporate governance gives rise to corruption, corporate scandals and poverty. It affects the efficiency of productivity in the economy and the misallocating of resources. Corruption is basically an aberration, it is dishonesty and it harms the interests of shareholders, society and all stakeholders,” he said.
Corporate governance refers to the system, by which companies are directed and controlled, and involves regulatory and market mechanisms, and the roles and relationships between a company’s management, its board, its shareholders and other stakeholders and the goals for which the corporation is governed.
According to the DPB boss, poor corporate governance within Zimbabwean companies has contributed to the country’s poor ranking on global corruption indices.
According to Transparency International, Zimbabwe was last year ranked number 154 out of 182. In 2010 the country was ranked number 134 out of 186 countries on the corruption perception index.
“Avoid being greedy. It is a major driving source of corruption. You can only live in one house at any given time. You can only drive one car at any given time. Profits to companies are like food to people. But how many consider eating to be the central or only purpose in life/maintain the highest ethics, integrity and probity. These are paramount to your future success both among fellow professionals and society at large,” said Mr Chikura.
Analysts have lamented the fact that owner-managers are running most local companies in the country, a fact that is resulting in compromised transparency, especially at board level.