By Sikhosonke Mayekiso

We have been subjected to numerous ethical leadership dilemmas in corporations just the past year alone without much zooming into the causal effects, but rather the consequential outcomes of such ethical conundrums. Particularly where it relates to non-private corporations. The flouting of corporate governance rules, the lack of directed and clear accountability, and the matter-of-fact reality that despite gross contraventions, those responsible are not held to the full might of the law. I take particular interest in the relatively recent case, where various allegations were levelled against the CEO, from bribery to the mishandling of a tender. This is not news to the ordinary South African. Issues of corruption have formed the very fabric of our business dealings as we know it. These are not separate as many might proffer from the corporate identity of corporations in this nation.

This case caught my attention, as it was the first time I witnessed a news media outlet not only follow a story to this extent, but record proof of the alleged bribery. It was reported that three months after this was brought to public light, the CEO still received their full salary. We also learned earlier this year that the CEO resigned “avoiding a disciplinary hearing.” Perhaps labour laws warrant their own overhaul. I make no claim to being an expert in labour law, but I find it quite troubling that one can so easily escape liability and accountability to the company by mere resignation. The act itself remains an infraction. It remains an act committed during one’s tenure. My observations indicate that we appear to have an escapist and evasive approach to accountability. Criminal charges were laid, but it is not clear the might and power with which these are being pursued – either the public is not made aware, considering the potential ongoing investigation, or we can assume the worst: that enough time must lapse such that we forget about the scandal altogether, until the next one. Our short attention spans as the public do not appear to allow us to approach such matters with the rigour they deserve.

Ethical leadership is no different from a corroded battery terminal, with life-threatening effects. The corrosion of corporate governance principles has over time restricted the current flow of the values underpinning good corporate governance creating much evident resistance, acting as a barrier to the full discharge of corporate governance, and producing poor conductivity. Much of what we have observed indicates that poor corporate governance insulates a layer between those tasked with the responsibility of ensuring good corporate governance practices and ethical leadership, and the company being fully ethically compliant. The crisis is the absence of ethical leaders. We are clear in our stance there is no irresolute approach, nor one that vacillates between the adoption of acceptable governance standards. It is clear South Africa understands the need for such mechanisms: not simply to undo the past injustices that were prevalent prior to this constitutionally informed dispensation, but primarily to serve as an internal combustion system that reinvigorates, creates an enabling environment, and functions as an essential auxiliary system for the full achievement of ethical leadership.

And yet, infractions are treated as minor. Responses arrive bubble-wrapped decorative statements, without teeth, from principals who merely discourage such conduct rather than confront it. Are we genuinely prepared to accept that CEOs act corruptly without accounting officers being aware?

I am not yet convinced that sanctions are resolute, proportionate, swift, or certain. As it stands, they are rather delayed, diluted, and applied only exceptionally. Beyond investigating the manner in which consequence management is handled, board independence warrants not merely genuine exploration but beyond exploration, a fundamental overhaul in approach, accompanied by layered accountability mechanisms.

Disclaimer: This post reflects my personal views only (not that of my employer) and is not to be construed as legal advice. Consult a qualified professional for your specific legal and related queries.