Page 38 - IRMSA Risk Report 2021

3.1

SCARCITY OF UNIFIED, ETHICAL AND VISIONARY
LEADERSHIP
At the core of the ethical leadership challenge is the reality that the quality of ethical and visionary leadership is waning, at
political and government level as well as within corporate South Africa. South African corporate failures have made the headlines
over the last few years and the wheels of justice are moving far too slow to restore faith. The consequence is that business and
consumer confidence is at an all-time low, negatively impacting our economy and future growth prospects.

SCENARIOS FLAGS SUCCESS STORIES
COUNTRY FLAGS C F Many excellent examples of unified, ethical
OWNING OUR FUTURE and visionary leadership in South Africa exist!
1. LEADERSHIP Three worth highlighting are:
2. INSTITUTIONAL CAPACITY Thuli Madonsela – the greatest influence
on the business industry is being a voice of
3. POLITICS integrity and reminding business leaders of
the importance of ethical governance and
4. SOCIAL COHESION business practises.
Sisa Ngebulana - A self-made millionaire that
5. NATIONAL POLICY
committed to doing it right, dealing with the
6. SERVICE DELIVERY challenges and getting through them while
owning up to all the consequences of his
7. INEQUALITY actions — good or bad.”
Then of course, Siya Kolisi - a leadership
8. ECONOMY style built on vision, commitment, trust and
PERPETUAL FAKE IT UNTIL WE honesty.
HANGOVER MAKE IT, OR NOT 9. GLOBAL TRENDS Read more about examples of excellent
10. CLIMATE leadership in South Africa http://entm.ag/r6x
C – CURRENT (2020/21) F – FUTURE (2030)
Many leaders have failed to hold their positions responsibly and have revealed deep seated corruption and a lack of ethical and visionary
leadership in both the public and private sectors in South Africa. Leadership at the start of the Covid-19 lockdown was promising. However,
the positive action was short lived and the the corruption in the procurement of Covid-19 personal protective equipment bears testimony to
this. Lack of ethical leadership remains a challenge.

TOP 5 CHALLENGES TO ACHIEVING TOP 5 RISK TREATMENT OPTIONS AND
TARGETS OPPORTUNITIES
1. Dwindling leadership pipeline: Up-and-coming youth and 1. Hold failed leadership in both public and private sectors
wealthy minority leaving the country for greener pastures. to account and restore trust and confidence through
open and honest dialogue.
2. Consequences: Lack of transparency and limited prosecution 2. Take advantage of the opportunity for accelerated ethical
of unethical leadership in both the public and private and socially responsible leadership created by Covid-19.
sectors.
3. Silence and resistance to change, harbouring corrupt 3. Step-up public prosecutions to send a strong message to
perpetrators and anti-whistleblowers’ mind-set. corrupt officials in all sectors.
Foster a culture where whistle-blowers are saluted as
heroes and champions and provided the necessary
protection against victimisation.
4. Covid-19 accelerated corruption as the focus had shifted to 4. Covid-19 became a catalyst for change with society
the pandemic and people were vulnerable. becoming less tolerant of corruption. The social
momentum and social conscience have to be leveraged to
root out corruption.
5. There is a vacuum in visionary, socially aware global 5. Opportunity for government and business to step
leadership. into this vacuum of leadership and those that leverage
this opportunity will step away as the most successful,
advanced and fastest growing companies and countries.

FACTS AND FIGURES
• In a South African Business Ethics Survey of 2019, 31% of respondents personally observe ethical misconduct in their
organisation. Of those that observed unethical behaviour, 55% reported it. Of those who did not report the unethical
behaviour, 32% felt they would be victimised and 31% believed nothing would be done to the perpetrator.
• Public censures and fines by JSE on Steinhoff International Holdings, EOH Holdings, Tongaat Hulett, AYO Technology Solutions,
amongst others in 2020.
• R62 billion was wasted through irregular expenditure in South Africa.
• R5 billion of the R10.38 billion spent on South Africa relief efforts now under investigation.
• During the Covid-19 pandemic Khusela Diko has taken special leave amid allegations that her husband received part of a R2.2
billion personal protective equipment tender awarded to 75 companies by the Gauteng Health Department.
• A politically connected operator, named in the personal protective equipment scandal besetting the Gauteng Health
Department, made an 800% profit on equipment he sold to government.

Source: Mail & Guardian, Daily Maverick, Business Day, Business Insider, Global Leadership, Corruption Watch, GVI Africa, People Factor Magazine and the University of Western
Cape.

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