• UNIT 9 FAIR OPERATING PRACTICES

    Key Unit Competence:
    To be able to analyze critically fair operating practices.
    Introductory activity
    One day, a villager went to the office of a Sector to ask for a construction
    permit. He was refused this service. Instead, the land office invited
    him to offer him some money so that he could help him get it.
    Read the above case study then after discuss the reasons why the
    aforementioned villager was not given the service he was asking for.
    What kind of offence the land officer was about to commit?
    9.1. Concept and forms of corruption
    Learning activity 9.1

    Using internet and/or other reference books, carry out a research and
    write the meaning of corruption and explain its forms. Afterwards,
    share your findings in pairs with one of your classmates.
    9.1.1. Concept of corruption
    Corruption refers to a very broad range of behaviour that particularly has
    something to do with power misuse. Corruption is an ill that is eating away most
    societies of the world, especially in the African continent.
    It involves the abuse of a position in order to gain an unmerited advantage through
    means that are illegitimate, immoral or unethical. It can be for personal gains or in
    favour of certain groups of people. It is mostly associated with bribery.
    9.1.2. Forms of corruption
    Acts of corruption may be petty or grand depending on the magnitude ofthe
    resources misappropriated or the measure of the injustice undertaken. Corruption
    takes many forms depending on the nature of the dishonest behavior practiced.
    The forms can be analyzed as follows:
    • Bribery: It is arguably the most common form of corruption. Bribery involves
    two parties: the give rand taker of the bribe. A bribe is an illegal payment
    given to a person either directly or indirectly for him/her to act in a certain
    way, or refrain from acting in his/her official capacity. This can be to allow
    illegal businesses such as smuggling of goods or to be exempted from

    legal procedures such as taxes or licenses.

    • Embezzlement: This is theft or misappropriation of money and other resources
    put under one’s responsibility but belonging to someone else. Embezzlement of
    funds is common in political situations where public money meant to be used in
    improving the standards of living of the citizens is misappropriated and used in
    personal projects by government officials. Apart from funds, human resource and
    public facilities can also be embezzled by being used to serve purposes other than
    the legitimate ones.
    • Nepotism: This is the practice of unfair distribution of resources or treatment
    of people that involves favouring closely related people in performance
    of one’s official duties. It can be giving individuals or groups of individuals
    jobs, promotions, or even salary increment based on the fact that they are
    related to you.
    • Patronage: This is where by a public officer gives favours such as employment
    in return for political support. For example, an aspiring politician may use
    his/her influence to illegally help people acquire positions in public offices
    in exchange for support in his/her political ambitions.
    • Theft and fraud: Some officials steal state assets kept under their watch
    or those assets made available to them by virtue of their positions in
    government. Fraud involves using deception to convince the owner of
    funds or assets to give them up to an unauthorized party. A good example
    is where a person in authority misdirects company funds into non-existent
    companies and then later transfers them into a personal account. Acquiring
    publicly owned assets such as money through illegal means is the most
    common form of corruption.
    • Institutional corruption: This form of corruption can happen where conflicts
    of interest are not managed. Institutional corruption takes place when those
    who are in charge of a project make decisions about those projects in their
    own favour, not considering other people who are in dire need and depend
    on those projects. For example, if an official is foreseeing a water project to
    help people in a dry locality have piped water, that official may make the
    decision to have fewer pipes so that he can spend less in the project and
    reserve more finances for him/herself.
    • Extortion and blackmail: Extortion and blackmail involve the use of threats
    to gain access to another person’s information or property. This can be
    the threat of violence or false imprisonment as well as exposure of an
    individual’s secrets or prior crimes. A good example is where an influential
    person threatens to go to the media if they do not receive speedy medical
    treatment or where a person demands money in exchange for continued
    secrecy.
    • Abuse of office/ discretion: This refers to the misuse of one’s powers and
    decision-making facilities. Examples include a judge dismissing a criminal
    case unjustly or a customs official using their position to allow a banned
    substance such as drugs to be imported or exported with the intention of
    gaining financially from it.
    Application activity9.1
    1. Basing on the definition of the concept of the corruption, identify
    any corrupt practices in your community. Refer to any of them that
    you witnessed and say how it was handled by the authority.
    2. Discuss different ways in which corruption is practiced in most
    African countries
    3. In about two paragraphs, write about four forms of corruption and

    mention African examples where it is possible.

    9.2. Causes and effects of corruption
    Learning activity 9.2

    In groups, brainstorm and account for the causes and effects of
    corruption. Afterwards, present your findings to the whole class.
    9.2.1. Causes of corruption
    Corruption starts within a person. The desire to make money or acquire certain
    privileges lures people to accept bribes or do certain things for their own gain and
    so they become corrupt.
    The following are the major causes of corruption:
    Ambiguity of laws: Most constitutional laws are not clear on matters of corruption
    and this creates loopholes for people to get away with corruption cases.
    In most cases, corruption begins from the top officials and people in positions of
    authority. This makes people feel secure in corruption deals. Bribing provides an
    alternative to following long procedures. People who can afford these alternatives
    would not take the trouble to follow these procedures.
    • Poor enforcement of law on property rights leads to a misconception that
    violation of these rights has little or no consequences.
    • Poor governance: The overall system of governance that has no place for
    moral and ethical values kills any spirit of justice that would help overcome
    corruption.
    • Personal greed and desire for money or wealth with no regard for morality.
    • The desire to serve personal interests rather than public interest at workplace.
    This may be due to weak supervision in the public sector.
    • Lack of awareness on matters of law and the justice system in the wider
    population. This renders people incapable of reporting incidents of
    corruption. This is because if someone does not recognize a crime oran
    act of injustice committed against them, then it is hard for them to act or
    resist it.
    • Fear of victimization. If one really needs a service and his/ her request for
    the service is met by demands for a bribe, this person may fail to resist offering
    the bribe out of the fear that resistance may cause difficulties in achieving his/
    her goals.
    • Some slogans encourage self–centeredness and therefore inspire
    corruption. For example: ‘take advantage while you can’; ‘everyone does
    it’ etc.
    • Systems that do not emphasize on accountability and transparency also
    cause corruption.
    • Slow and unreliable judicial processes such that even when one gathers
    enough courage to report corruption, the procedures involved take long
    and may actually not be effective enough to discourage the crime. The
    procedures are also costly to follow through.
    • There is lack of moral criteria in promotions. Promotion should be based
    on proven integrity and responsibility but this is not always the case.
    Promotions are at times based on corruption and this creates a system
    built on the vice of corruption.
    • Lack of will to prosecute those in power. Most of the times reports on
    corruption point at influential public figures whose cases are down played as
    those in charge often feel like they have less power to penalize them.
    In conclusion, the causes of corruption can be said to be built around personal,
    cultural, institutional and organizational factors.
    9.2.2 Effects of corruption
    Corruption is all about taking advantage of someone else’s condition and the
    possibility of gaining from it. It becomes a social issue when it becomes an
    assumed culture whereby people in a society cannot access public services and
    resources without bribing those in authority. The result of this is that the poor
    suffer more as they lack the social networks and funds to access these services.
    National resources and opportunities therefore end up being owned by those in
    power and those with the means. The gap between the rich and the poor widens
    and oppression and exploitation become rampant. What results is a society
    whose economic development is crippled as there venues supposed to develop
    the nation are misappropriated and unequal distribution of resources denying a
    high percentage of the population an opportunity to develop.
    Corruption has far reaching negative effects from the individual level, community
    level, national level, all the way to the international level. These effects are:
    Corruption undermines economic development, distorts political systems and halts
    infrastructural development. It kills a person’s sense of morality. Every act of
    corruption leads to oppression of one party to benefit another. It is therefore an
    act of immorality.
    A system of corruption enhances social inequality as resources are utilized by those
    in power and the rich. It leads to political instability as leaders are not elected out of
    integrity but through corrupt means. Corruption undermines human rights. A society
    where people are deprived of their rights lacks in peace and people are always in a
    struggle for a dignified life.
    At the community and national level, corruption slows down development as
    resources meant to drive development projects are pocketed by the ruling class.
    Corruption encourages illegal activities and crime as criminals and law breakers
    are able to bribe their way out. The rule of law is compromised.
    The authority and integrity of public administration structures is undermined.
    Corruption leads to depletion of national wealth. Selfish individuals use the
    national resources for personal advancement. They convert public wealth to
    private property. It also causes inflation. It is responsible for increased costs of
    foods and services as the revenue that would have been used to subsidize these
    necessities is misappropriated.
    Corruption leads to unequal allocation of resources which leads to imbalance
    in economic development. Some regions are improved while others remain
    marginalized. It discourages people from working together for the common good.
    This may lead to frustration and general apathy among the public which can
    create a weak civil society that is not unified.
    Corruption results in social inequality and widens the gap between the rich and
    the poor, causes civil strife, increased poverty and lack of basic needs like food,
    water and drugs.
    It also causes jealousy, hatred and insecurity. Corruption is therefore a bad
    practice. It undermines the legitimacy of a government, weakens state structures,
    reduces productivity and hinders national development.
    Application activity9.2
    1. Explain two causes of corruption.
    2. How does corruption affect the society? What do you think should
    be done to corrupt officers in your country?
    9.3 Fair competition
    Learning activity 9.2

    Using internet and/or other reference books, carry out a research
    and organize a debate on the following motion: “Fair competition and
    respect are unattainable in modern society.”
    Fair competition means that the same rules and conditions are applied to all
    participants and that the actions of some do not affect the ability of others
    to compete. People can only compete fairly when all the advantages and

    opportunities are equally provided to all competitors.

    In trade, fair competition means a situation where business people compete on
    balanced factors such as price, quality and service. This means that there is no
    monopoly of business; rather, there is opportunity for all who are interested in the
    business. Healthy competition can improve a country’s economic performance.
    Open business opportunities reduce the cost of goods and services and therefore
    contributes to improving the economy.
    9.3.1. Advantages of fair competition
    – It leads to friendship among competitors.
    – Respect for one another.
    – It promotes honesty and fairness in business transactions.
    – It encourages teamwork.
    – It promotes economic growth and poverty reduction. It can lead to significant
    reforms in the business world due to increased competition.
    – Fair competition helps consumers to get a good deal and contentment for what
    they spend. It ensures that good quality products are produced.
    – Fair competition leads to the urge of being better in the market. It encourages
    competitors to innovate. This reduces pressure on costs and produces
    more returns due to efficiency in production.
    – It lowers prices for consumers
    – It enhances technological advancement.
    – Consumers have a wider variety to choose from; hence they become more
    informed on different qualities of products that can be available.
    – There is availability of products in different prices, and therefore all classes
    of people are catered for.
    9.3.2 Justification for fair competition
    If there was only one airline that was offering international transport, no matter
    the quality of the services that it would offer, travelers would have no option but
    to use it. This kind of airline can be said to be a monopoly. However, if the market
    was open and there were many other options for air travel, this airline would
    be forced to ensure that its services are of good quality for it to survive in the
    transport industry. This would ensure that consumers get value for their money.
    1. Discuss with your partner the ways in which your society tries to
    be fair to everybody.
    2. What are the advantages of fair competition?
    9.4 Respect of property rights
    Learning activity 9.4

    By watching a documentary film or using internet and/or other
    reference books, carry out a research and explain the consequences
    of the cultural dilution and the principles of inclusion. Afterwards,
    present your findings to the whole class.
    In most cases, disagreement over who owns property or how property ought to
    be used leads to strife and at times violence. These disagreements arise from
    disrespect for property rights or unclear definition of ownership. Property rights
    determine how source or property is owned and used. A property can be owned by
    an individual, a group of individuals, an association or the government.
    Property rights are made necessary by the fact that many people live together either
    in a family, a community or the wider society. If each person lived alone, then
    there wouldn’t be a need for property rights. In essence, property rights help to
    ensure a peaceful coexistence among members of a family or community as they
    ensure that ownership to property is defined.
    Apart from ownership, property rights also determine the relationship of other
    parties linked to the property. Violation of these rights is punishable and this
    reduces incidents of disrespecting others property rights.
    A person’s property rights can be said to have been violated when:
    • Someone destroys the property
    • Someone uses it without permission from the owner
    • Property such as land can also be infringed upon when:
    • Someone grabs the property (such as land)
    Property rights enable a property owner to have control over the property in
    the following ways:

    • The right to use the property - this means that a property owner has the right
    to decide whether and how to use the property. For example, if someone
    owns a piece of land, it is within their right to decide whether to put the land
    to use or not and how to use it.
    • The right to earn income from the property-an owner of a property may decide
    to hire it out or put it to personal use.
    • The right to transfer the property to others - this is where someone decides to
    sell his/her property to someone else or even give it without any financial
    returns.
    • The right to enforcement of property rights - this means that one who owns a
    property has the right to exercise all the rights pertaining ownership of that
    property
    Advantages of property rights
    • Property rights provide security for the future. This is in matters of inheritance
    of his/her property. When someone is the owner of a property, he/ she has
    the right to transfer ownership to an individual of choice. Once ownership
    has been transferred, the property rights protect the new owner such that
    no one else can claim the property.
    • Property rights also act as a catalyst for socio- economic progress as people
    want to work hard to own their own property. If all property were communally
    owned, people would not find much prestige in owning property.
    • The boundaries of how a property should be used also enhance peace and
    harmony in the society.
    • It is a source of prestige and gives one a higher social status.
    • However, property rights may lead to greed for property, capitalism, inequality

    and corruption.

    Application activity 9.4
    1. In which way the property rights enable a property owner to have
    control over the property?
    2. What are the advantages of property rights?
    9.5 End Unit Assessment
    End unit assessment

    1. What are different strategies that have been adopted in your
    country to fight against corruption?
    2. Discuss with your partner the ways in which your society tries
    to be fair to everybody.
    3. Explain the advantages of fair competition.
    4. Evaluate the different ways in which the property rights enable a

    property owner to have control over his or her the property

    UNIT 8 DIGNITY AND SELF-RELIANCEUNIT 10 FINANCIAL SCAMS