'We are not a society of saints'

E he edge, D. A. A icle 'We a e no a socie y o sain s' Sou h A ican Jou nal o Business Managemen P o ided in Coope a ion wi h: Uni e si y o S ellenbosch Business School (USB), Bell ille, Sou h A ica Sugges ed Ci a ion: E he edge, D. A. (1983) : 'We a e no a socie y o sain s', Sou h A ican Jou nal o Business Managemen , ISSN 2078-5976, A ican Online Scien i ic In o ma ion Sys ems (AOSIS), Cape Town, Vol. 14, Iss. 3, pp. 125-129, h ps://doi.o g/10.4102/sajbm. 14i3.1157 This Ve sion is a ailable a : h ps://hdl.handle.ne /10419/217838 S anda d-Nu zungsbedingungen: Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen Zwecken und zum P i a geb auch gespeiche und kopie we den. Sie dü en die Dokumen e nich ü ö en liche ode komme zielle Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich machen, e eiben ode ande wei ig nu zen. So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen (insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en, gel en abweichend on diesen Nu zungsbedingungen die in de do genann en Lizenz gewäh en Nu zungs ech e. Te ms o use: Documen s in EconS o may be sa ed and copied o you pe sonal and schola ly pu poses. You a e no o copy documen s o public o comme cial pu poses, o exhibi he documen s publicly, o make hem publicly a ailable on he in e ne , o o dis ibu e o o he wise use he documen s in public. I he documen s ha e been made a ailable unde an Open Con en Licence (especially C ea i e Commons Licences), you may exe cise u he usage igh s as speci ied in he indica ed licence. h ps://c ea i ecommons.o g/licenses/by/4.0/ s. A . J. Bus. Mgm . 1983, 14(3) /n e ace I Koppel lak 'We a e no a socie y o sain s' D.A. E he edge Ins i u e o In e nal Audi o s, Sou h A ican Chap e , P esiden , S.A . Ins i u e o Managemen AC(Cl)led May 1983 In his a icle, he au ho illumina es he phenomena o co up- ion In he Sou h A ican socie y. No only does he illus a e ha co up ion needs o be con ained, bu he also sugges s ha companies, la ge and small, public and p i a e a e no do- Ing enough o minimize he incidence o co up ion. The au ho hen p oceeds o sc u inize ou ways o es ic - ing co up ion: -Legisla ion. Al hough he does no a ou he op ion o legisla ion. he demons a es ha he in oduc ion in he USA o he Fo eign Co up ion P ac ices Ac led o subs an ial changes in company beha iou and p ac ice. - Beha iou . The au ho sugges s ha companies spell ou in clea e ms wha is conside ed accep able and legi ima e beha iou and wha is no . These policy guidelines mus hen be implemen able in p ac ice. -Educa ion. In he long e m, he au ho sugges s, socie y mus be educa ed and e-educa ed in business e hics. Clea ly, business schools would be he ideal ins umen o ca y he awa eness in o he business communi y. - Audi . The au ho p oposes ha he audi is he bes way o dealing wi h co up p ac ices. Mangemen mus ins all he sys ems and in e nal con ols; and mus ensu e ha he in e nal audi eam is composed o high quali y people who will no de ia e om hei ask objec i e. In his espec he compu e -despi e I s own secu i y p oblems -could be o g ea impo ance. S. A . J. Bus. Mgm . 1983, 14: 125-129 In hie die a ikel wo d die phenomeen an ko upsie in die Suid-A ikaanse besigheidswA eld on bloo . Die sk ywe s e di da maa skappye en ins ansies nie genoeg doen om die p o- bleem e bekamp nie . . Die sk ywe s el basies ie wyses oo waa olgens ko up- sie ~hee kan wo d, nl. We gewing, Ged agskodes, Op oeding en die ln e ne Oudi . Die sk ywe slaan die laas e wyse hoog~ e aan en b ei daa op ui - e al en opsig e an die geb u1k an die ekenaa . S.-A . Tydsk . Bed yls/. 1983, 14: 125 -129 Time magazine ecen ly nomina ed he Compu e 'Man o he Yea o 1982' hus con i ming an uneasy eeling amongs i s eade s ha he compu e has become a domi- nan ea u e in ou li es and is displaying e e inc easingly human cha ac e is ics. This g owing humani y is no necessa ily a ma e o joy as he p e ious 'Man o he Yea ' was Aya ollah Khomeini. Some o he le e s in he ollowing issue o Time (24 Jan. 83) . e~ealed he conce ns abou he compu e : I 1s app op ia e ha a machine should eplace he ~an o he Yea in I 982, especially when one con- side s he colossal absu di y o he imes in which we li e.' 'I am dismayed ha he compu e alone is Man o he Yea . The i le should be sha ed equally wi h unemployed Ame icans. The compu e is he big eason why so many Ame icans a e jobless.' _'I ea compu e s will s a Wo ld Wa III by mlS ake. They now make e o s on income ax bank s a ~en s and u ili y bills. These machines h~ e no conscience.' 'Y_o~ ha e only encou aged hem_ he ju enile adm1ms a ~ s who a emp o sol e managemen p oblems wi h echnological oys a he han s udy analysis and wisdom.' ' 'Cong a ula ions on you choice o he compu e . You _ha e selec ed my li elihood, my iend and, ac- co ding o my wi e, my cons an companion.' 125 I suppose my main conce n as a businessman si ing on ~p o a la ge gold mining ope a ion which makes con- side able use o he compu e , is whe he his ha dwa e makes up o he ail ies o man o simply compounds hem. The ac ha we now ha e o ha e a con e ence on he compu e and in e nal audi seems o sugges ha he compu e se es o mul iply ou capaci y o mis akes and malp ac ices! Bu o be mo e se ious, he compu e is ob iously an im- po an ocus o in e nal audi and can also be i s bes al- ly. This in ol es howe e no only an unde s anding o he compu e by hose esponsible o in e nal audi bu also an unde s anding o in e nal audi by he compu e people. I he audi p ocess is o be eally e ec i e, aining o hose in ol ed wi h he compu e mus begin a he sys ems de elopmen le el. While he compu e is now an in eg al ea u e o business li e, in e nal audi has only ecen ly begun o be p ope ly app ecia ed in Sou h A ica. This is pa ly because o he a i al on he scene o he compu e , bu also because o he g owing complexi y o business and he el de e io a ion in supe iso y and manage ial alen which is a quali a i e as well as a quan i a i e p oblem. I belie e ha an inc easing numbe o execu i es unde - s and ha in e nal audi has gone a beyond he 'policeman' o 'spy' ac i i y and a beyond he simple p o- cesses o icking and coun ing. I hink also ha i is mo e eadily unde s ood ha in e nal audi is no an ex ension o ex e nal audi and ha while he unc ion o he la e is o epo o he membe s o a company who a e, in a sense, ou side i , he unc ion o in e nal audi is o sa is y and assu e he managemen . Inc easingly, in e nal audi is being used o iden i y p oblems, o es sys ems and o e alua e in e nal con ols. I is he C.E.O.'s al e ego - i ells him how well his objec i es, policies, plans and in- s uc ions a e being ca ied ou and how e ec i ely and e - icien ly his con ols and ope a ions a e wo king. Hugh Ma sh o ALCOA USA, said o in e nal audi : 'I belie e ha he mos impo an bene i o be p o- ided by in e nal audi o managemen is p o iding com o . And ha com o can be di ec ly ela ed o he audi o 's scope o wo k: i s , ha I, as a manage , ha e been wo king wi h eliable da a; secondly, ha my employees a e complying wi h policies, plans, p ocedu es and go e nmen laws and egula ions; hi dly ha my asse s a e being p ope - ly sa egua ded; ou hly, ha I am using esou ces economically and e icien ly; and inally, ha my ob- jec i es and goals a e uly being achie ed.' The A o ney Gene al o Canada calls in e nal audi : 'One o he sha pes and mos e ec i e ools a ailable o managemen o ensu e ha i manages he esou ces o which i is accoun able economical- ly, e icien ly and e ec i ely.' 126 we a e pe haps lagging behind in Sou h A ~ca in so ~- p ehensi e an unde s anding o in e nal audi bu~ I be~1e~e his is g owing and will become common p ac 1~ wi hm a ew yea s. Few big o ganiza ions a e ~ hou 1 ~ough one la ge ins i u ion wi h which I am assoaa ed ou side h_e mining houses is only now ins alling an i~ emal audi sys em. Ou need is as g ea as anywhe e m he ~o~ld because ou socie y is equally impe ec and human ail ies no less e iden -'We a e no a socie y o sain s'. I is nea ly ou mon hs ago ha , in my capaci y as P esi- den o he SAIM, I said in he cou se o a speech in Po Eliz.abe h ha business and public adminis a ion in Sou h A ica we e sho h ough wi h dishones y. This s a emen caused qui e a s i a he ime and o a couple o weeks he ea e and, apa om he news i ems, edi o ials and le e s in he newspape s, I was bomba ded wi h phone calls and le e s, anonymous and open. I ha e no wish o become mo e deeply emb oiled in his ma e bu eel he need o make u he e e ence o i - and his add ess p o ides a be e ehicle han mos . My pu pose is o acknowledge ha many people o all so s and anks in socie y ha e gone ou o hei way o hank me o aising he ma e and con ibu ed u he o ou knowledge o i . I wish I could say ha I now eel ha I exagge a ed he p oblem back in No embe . Some o my iends in chie execu i e posi ions ha e sugges ed o me ha I did exagge a e he p oblem. They a e men o g ea pe - sonal in eg i y unning la ge o ganiza ions employing housands o people. I seems ha hey simply do no know -and canno hope o know -wha is happening u he down he line, o en in hei own o ganiza ions, le alone o he s. Reg e ably he gene al message is ha co up ion o one so and ano he is indeed widesp ead in he public se ices, pa as a al o ganiza ions, boa ds, local au ho i ies and in business, much mo e so han I ealiz.ed. This has been con i med by chie execu i es on he one hand and cle ks and junio o icials on he o he . Sec o a e sec o o ou socie y has had he inge poin ed a i by someone who knows his ac s. No all he accusa ions ha e su e ed om agueness which o en cha ac e izes his so o p oblem - a numbe ha e been p e y speci ic and de ailed. I do no se mysel up o be an ombudsman and he e o e ha e, gene ally speaking, no aken hese any u he . I is abundan ly clea ha a g ea many o he ac ions which esul in pe sonal gain a he expense o he ins i u- ion a e based on collusion be ween someone employed by he ins i u ion and someone on he ou side, usually a sup- plie o equipmen and goods o a con ac o p o iding se - ices, epai s and he like. Be ween hem hey collude o ob he ins i u ion by alsi ying he inancial a angemen s be ween he wo bodies hey ep esen wi h a e y good chance o hei collusion no being de ec ed. The e a e, in- e alia, many examples o ende p ocedu es -p obably hough by managemen o be sound and oolp oo -being manipula ed by collusion o he bene i o he unsc upulous pa ies. I would like o quo e om some o he le e s I ha e ecei ed, none o hese being anonymous, bu being p o- pe ly signed by he w i e . The i s is om a managing di ec o : 'F om my expe ience I ha e ound se e al eac ions: -The e's some hing w ong wi h me o no accep - ing "ex as"; -The e's some hing w ong wi h my company o S.-A . Tydsk . Bed y sl. 1983, l4(]) no o e ing "ex as"; -Rocking he boa when I obse e his p ac ice c ea es a blacklash and pe manen damage o my company. I'm us a ed wi h his si ua ion. My pe sonal ex- pe iences in (he men ions h ee hi d wo ld coun ies) has gi en me an insigh in o he logical ex ension o such p ac ices.' And a woman who wo ks in he husband's business: 'I ha e always aken he iew ha paymen s o his na u e a e no hing o he han b ibe y bu I'm a aid my adaman a i ude has los my husband a g ea deal o he mo e luc a i e ype o business. When I see how much he ha de he has o wo k in o de o main ain his ideal o hones y, my hea aches and I don' know whe he I am igh o be so igid.' A simila s a emen om ano he manage : 'I has been disappoin ing in his las 13 yea s in Sou h A ica o ha e expe ienced si ua ions whe eby because o my pe sonal p inciples I would no s oop o g a . The consequences o los business al hough hu ul and unp o i able a he ime esul ed in a clean conscience . . . Co up ion needs ha sh ea - men ac ioned by all . . . ou s eng h o e adica e g a will only come om uni y o e o .' And inally, a man who e i ed om a senio buying posi- ion a ew yea s ago: 'I ha e (since e i ing) me many people associa ed in one way o ano he wi h he mining indus y and he s o ies I ha e hea d indica ed a se ious wo sen- ing o he si ua ion.' I do no like anonymous le e s bu I am now going o add some hing said by an anonymous pe son because i may be much mo e ele an o a 'wo sening si ua ion' han we ealize. His iew was ha he In o scandal and pa icula ly he many aspec s o i le un esol ed, in ol ing e y im- po an people in public se ice and in business, c ea ed he en i onmen in which lesse people el ha co up p ac- ices a hei le el we e, i no de ensible, a leas no wi hou he p eceden o op-le el example. . In ac , he mos se ious aspec o he whole ma e 1s he iew ha co up p ac ices a e so widesp ead because hey in ol e some op le el people in a ious sec o s who a e in one way o ano he shielded om public gaze. Al e - na i ely ha he e a e many op people who appea o know wha is going on bu a e no p epa ed o speak ou o ake ac ion o one o ano he eason. Jus ano he wo d on anonymous le e s and phonecalls. Mos o hese deal wi h a speci ic issue and o en named hose alleged o be in ol ed. One which a i ed on my desk in Janua y is wo hy o men ion. While i is on plain pape • i pu po s o come om 'an ex emely la ge G oup o Com- panies', is well- yped and pu po s o ha e been w i en by senio execu i es. I deals wi h i egula i ies wi hin ou G oup, pa icula ly one gold mine, and says hey will be wa ching de elopmen s wi h in e es and 'conside aking o he ele an ac ion i his highly unsa is ac o y s a e o a ai s be allowed o con inue'. Should hose who w o e his le e hea o my e e ence o hem now, I us hey will ealize ha his is a silly way o 'an ex emely la ge G oup o Companies' o beha e ~d ha hei s a emen ha 'un o una ely o easons which will be sel -e iden we mus w i e o you anonymously' is qui e unaccep able. One o he execu i es could ha e seen S. A , J. Bus. Mgm . 1983, 14(3) me o hey could ha e w i en con iden ially bu openly o me. F ankly, his le e is in i sel a o m o co up ion and I c:an only hope ha he au ho s a e no who hey p e end o be. I hey a e indeed senio execu i es o a la ge g oup, I he eby issue hem wi h an in i a ion o see me con iden- ially wi h an unde aking ha i hey ha e been playing he game s aigh , hey ha e no eason o ea ep isals o wha e e i is hey ea . Pe haps his is he apposi e poin a which o say ha i is also e iden ha some innocen people a e accused o kep unde suspicion o p ac ices o which hey a e inno- cen . A e all, he majo i y o people in all sec o s a e in- nocen and some ha e o su e om un ounded accusa- ions. This is one o he aspec s ha causes people o hold back in b inging co up ion o he o e -and qui e igh ly so. The legal p inciple ha a man is innocen un il he has been p o en guil y should especially apply in he ma e o business e hics. I ha e been wa ching he newspape s o e he las ou mon hs o new e idence o co up ion, g a and mis- managemen o unds and his he e has been in ai abun- dance, wi h a com o ing numbe o hese ma e s eaching he cou s. In e alia, he p ess has gi en conside able a - en ion in ecen mon hs o alleged accep ance o 'gi s' by medical o icials om one o mo e pha maceu ical com- panies. A he same ime, o he p ess epo s ha e ein o ced he ac ha he p oblem o co up ion is by no means con- ined o Sou h A ica o o he ee en e p ise wo ld bu is endemic in he whole o oday's wo ld. In ac , he absence o en ep eneu ial oppo uni ies in socialis and communis coun ies appea s o c ea e e en wo se p oblems in hose coun ies. A new book by Pa ick Meney, a F ench jou nalis who was a co esponden in Moscow o yea s, says he So ie Union has become a klep oc acy -'a socie y o hie es, ixe s and conmen' (S a 8 Jan. 73). The highes and he lowes in he land a e included in his klep oc acy and in a black ma ke whe e p ices a e usually en imes highe han he no mal ones. He ci es he case o he Minis e o Fishe ies who headed a ing logging ons o ca ia ab oad annually by expo ing he a e delicacy o ac- complices in Swi ze land as inned he ings. The Minis e 's esigna ion in 1979 led o he a es o 200 dishones o - icials. He also ells o he ' ac o y ha ne e was' which en iched hose who conni ed o pay sala ies and subsidies o non exis en o icials. The new P esiden o Mexico, de la Mad id, whe e co - up ion has long been endemic has emba ked on 'mo al ~o a ion'. In e alia he is seeking changes o he cons i u- ion ha will make i easie o p osecu e co up o icials. In an a icle in Time, 20 h Decembe , some doub is ex- l)l'essed abou de la Mad id's abili y o b ing abou his mo al ~o a ion because ' he coun y's e ec i e one-pa y sys em Vi ually ins i u ionalized he p ac ice (o co up ion), a ac ha Mexicans ha e ecognized wi h equanimi y'. Among o he hings, 'Mexicans suspec ha as many as one million Phony jobs we e c ea ed in he coun y's economy, while go e nmen o icials and o he s siphoned o he paycheq- ues o non-exis en wo ke s.' McG aw-Hill, he u; Ame ican publishing company has conduc ed a su ey o business e hics in 16 indus ialized coun ies. I ha e no seen he ac ual su ey and ha e o e- ly on a ecen p ess epo . Appa en ly he su ey showed h~ one senio manage in se en ge s caugh up in une hical business p ac ices, including b ibe y and alsi ica ion o in- 127 o ma ion. Mo e han hal o he 900 execu i es ques ioned had ecen ly been con on ed wi h a leas one con lic ~ w~n he dem~~s o hei company and hei pe sonal ~lie s o wha IS igh . One in en had been aced wi h ha - mg o ~ke an une hical decision a leas six imes du ing ~e p e 1ou~ i e yea s. Thi y-eigh pe cen o hose ques- 1o~ed admi ed hey had ecen ly ei he made o ecei ed an i egula paymen o one kind and ano he . Finally, he su ey s a es ha wo- hi ds o hose who ac ed acco ding o hei consciences and e used o comply wi h une hical company dic a es su e ed no ad e se consequences a all. These examples o co up ion in o he coun ies a e no gi en o u n he spo ligh o ou own p oblems and while i is a com o , cold hough i may be, ha o he coun ies ha e e en wo se co up ion and ha socialism and Ma xism a e mo e co up han capi alism, he ma e o eal con- ce n is wha is happening he e in Sou h A ica. The o e all pic u e has pe haps bes been exp essed in a b ie edi o ial in The S a on 9 h No embe , 1982, which is wo h quo ing in ull: 'Only he mos nai e would ha e been su p ised by M Dennis E he edge's lamen ha business and public adminis a ion in Sou h A ica a e sho h ough wi h b ibe y, kickbacks and plain aud. Co up ion ocks no jus he capi alis wo ld bu he communis and he Thi d Wo ld oo. No can i be blamed on 20 h cen u y immo ali y. I has been a way o li e o many e e since money and se ices became pa o ci iliza ion. Today some la ge com- panies budge o kickbacks; some Thi d Wo ld go e nmen s delibe a ely unde pay public se an s knowing hey make up o i "in o mally", some communis coun ies a e c ippled wi h bu eauc a ic g a . Pe haps M E he edge's c y o us a ion will lead o some hing. Bu only pe haps. Co up ion is held in check only by he igou o a socie y's non- ma e ialis ic alues.' I wan now o be cons uc i e and sugges wha can be done o educe he incidence o co up p ac ices in ou socie y. Some o he ideas which ollow ha e o igina ed om o he people who ha e made con ac wi h me since he Po Eliz.a.be h speech. The ideas g oup hemsel es unde ou headings: Legisla ion I am con inced ha no all p oblems a e sol ed by legisla- ion and ha ou poli icians a e al eady oo ond o ad- ding o he mass o laws which go e n ou li es. In ac , one o he p oblems o p i a e en e p ise in Sou h A ica which claims o be a bas ion o his sys em, is ha ou legisla o s ha e w apped i up wi hin such a maze o la~, con ol boa ds, adminis e ed p ices and gene al s a e m- e e ence ha i is a wonde ha i wo ks a all. Howe e we need o ake no e o he impo an impac in he Uni ~ S a es o he Fo eign Co up P ac ices Ac which came in o being in 1978 o cope wi h widesp ead ques- ionable co po a e paymen s o o eign o icials and businessmen. I goes much wide han i s i le sugges s and p o ides comp ehensi e accoun ing p o isions which along wi h he an i-b ibe y p o isions ope a e ega d!~ o whe he a company is in ol ed in o e seas business. Na u ally, he ac was no well ecei ed no is_ i wi hou i s con using aspec s bu is has led o subs an!1al changes in company beha iou and p ac ices and has em o ced he 128 sys em o audi commi ees o he Boa d o~ Di ec o s. Th~ audi commi ees ope a ed in abou wo- ha ds o compames in he USA in he ea ly 70s bu since he passing o he Fo eign Co up P ac ices Ac he e is ha dly a company which does no ha e an audi commi ee o di ec o s, in- ol ing he ou side di ec o s o he company. Such an Audi Commi ee no only lends weigh o bo h in e nal and ex- e nal audi ; i ecognizes he ac ha he p oblems which a ise o en in ol e hose a managemen le els as well as hose hey supe ise. Pe haps I ha e pu he las , i s -legisla ion migh be a oided i some o he o he sugges ions which ollow a e implemen ed. No hing should gi e us g ea e pleasu e han a oiding he necessi y o he passing o ano he law. Beha iou We need o change he a i ude in ou socie y owa ds co - up p ac ices, big and small, especially amongs hose in posi ions o esponsibili y. Du ing he wa 'up No h' we used o alk o 'o ganizing' hings o ou sel es -pe y s ealing o make li e mo e ole able. Tha migh ha e been accep able beha iou in he peculia ci cums ances o he ime bu i is appa en ha in many a eas o ou socie y i is s ill accep able. Remembe ha wha we a e alking abou is s ealing in one o m o ano he -s ealing om he company, s ealing om he S a e. We canno educe he incidence o his i we sh ug ou shoulde s and say i is ine i able. We ough in e e y o ganiza ion o ha e a code o p ac ice and o p o ide se e e penal ies o hose who ansg ess he code. I is s ill he p ac ice in many places o i e quie ly an employee who has been guil y o aud o some o he malp ac ice; o una ely, in a g owing numbe , he ma e is also handed o e o he police. P osecu ion o en p esen s di icul ies. Many a man who will ell you p i a ely wha he knows abou a pa icula malp ac ice amongs his associa es will no ag ee o make a swo n s a emen because o he emba assmen and pe haps ic imiza ion ha will ollow. I am awa e o a numbe o cases whe e he absence o jus one such s a e- men mean ha a p osecu ion was no possible. Again, one is aced wi h a p oblem o beha iou in a socie y. Manage- men mus do all i can o inculca e an unde s anding ha i is incumben upon employees o help in he p osecu ion o someone who is clea ly guil y o malp ac ice. I may sound ha sh bu i is ue ha someone who ails o do his is himsel some hing o an accesso y o he c ime. o cou se, whe e assu ances can be gi en ha he e will be no come- backs and no ic imiza ion hey mus be genuinely gi en. Some businesses do no spell ou clea ly enough wha hey accep as legi ima e beha iou and wha is no . In No embe las yea , Assocom helped membe i ms wi h he issue o guidelines which include ins an dismissal as an au oma ic penal y o employees guil y o g a . This is a policy al eady ollowed by a good numbe o companies bu i needs o be uni e sally applied -and in he public se ices as well. The S.A. Ins i u e o Managemen 's Code o Conduc which was issued in book o m o all membe s in 1982 makes h ee e e ences o business e hics: - 'A manage shall no misuse his au ho i y o o ice o pe sonal o o he gain' and, - :Make imm<:<lia e and ull decla a ion o any pe sonal m e es s which may con lic wi h he in e es s o he o ganisa ion' and, -'Nei he o e no accep any gi , a ou o hospi ali- S.-A . Tydsk . Bed y sl. 191 31 l4( 3) y, in e?ded as, o ha ing he e ec o , b ibe y and co up ion'. Gi s can, o cou se, be made o p i a e and public employees i i is absolu ely clea ha hey a e no in ended o ha e he e ec o b ibe y and co up ion. In ac , in he same issue o he Sunday Exp ess which e ealed wha was happening in he medical wo ld, he e was an a icle 'Execu- i es ge gi s -no b ibes' which said he execu i e gi s indus y was booming wi h g ow h es ima ed his yea o be 200/o up in a ma ke es ima ed a R200m. The chai man o a g oup in his ield is quo ed as saying ha 'A i udes ha e changed and managemen s accep ha i is now no - mal p ac ice, wi hin eason, o companies o exchange gi s simply o say hank you o an associa ion.' I suppose he c i ical wo ds he e a e 'wi hin eason'. In he ci cums ances i is com o ing o know om him ha he mos common gi s, anging om SOc o RIOO a e imp in ed ones. I ou p oblems we e limi ed o SOc o RlOO he e would be li le cause o conce n bu un o una ely i uns in o a la ge igu es, some imes i e and six igu es. None o hose who ex ol he i ues o he p i a e en e - p ise sys em he e o elsewhe e p e end ha i is pe ec . While one can decla e wi hou doub ha p i a e en e p ise is he bes way o b ing abou g ow h and de elopmen and o mo i a e people, one has o admi ha i has i s blemishes and ha unsc upulous indi iduals ha e oppo uni ies o misuse i . No only do we in he p i a e sec o unde s and his bu I belie e ha much is being done o make co up p ac ices mo e di icul and o li he le el o business e hics. I is no un easonable he e o e o sugges ha he Ci il Se ice, pa as a al bodies, con ol boa ds and local au ho i ies should ha e a good look a hemsel es, aking accoun o widesp ead allega ions o mishandling o unds in a a ie y o ways. To hose o us on he ou side, he much-publicized a ionaliza ion o he ci il se ice seems o ha e done li le o imp o e he se ice i is supposed o p o ide. We a e aced wi h he c y ha he Ci il Se ice has se ious sho ages o pe sonnel - which is ce ainly ue in ce ain key a eas -bu we a e also awa e ha he S a e employs a e y high p opo ion o he whi e popula ion - abou 300/o I hink i is. Bu I am no ying o play down he se iousness o s a sho ages. The Sunday Exp ess (23 Jan. 83) epo ed ha mos senio Go e nmen and A my men who appea ed be o e he 1982 Pa liamen Selec Commi ee on Public Ac- coun s complained o inabili y o comply wi h audi ing egula ions because o c i ical s a sho ages. I s ock can- no be checked, and ouche s con i med he possibili y o co up p ac ices is g ea ly inc eased. We ha e also hea d in he p ess abou he as numbe o acancies in he Inland Re enue Depa men which in- e i ably means some axes a e no being collec ed and op- po uni ies o e asion a e inc eased. Business Times quo ed on 21s Janua y a op o icial o Inland Re enue who said: 'Don' quo e me, bu ou calcula ions sugges ha , as hings s and, he p o essional ax dodge has a 400/o g ea e chance o making 700/o mo e money o e 10 yea s han he hones and consis en axpaye '. Apa om he p oblem o s a sho age and inadequa e audi s, he public se ices a e missing ano he impo an discipline. O he han in he case o some pa as a al bodies, he e is no p o i mo i e, no bo om line and no dange o 'going bus '. Sloppy p ac ices a e much easie han in he S. A . J. Bus. Mgm . 1983, 14(3) p i a e sec o whe e audi s a e egula ly and ully ca ied ou and e e y hing has o be uned o he o e all necessi y o making a p o i . Educa ion In he ong e m, we mus ely on educa ing and e-educa ing ou socie y. In he ield o business educa ion, 1 am pleased o s a e ha he g adua e schools o business a e discussing he inclusion o a cou se in business e hics in he MBA. The GSB a UCT al eady o e s a cou se which goes some way owa ds his -'Business in Socie y: concep s and alues in an A ican con ex ' de eloped and augh by D James Lea . I app ecia e ha a g ea amoun has o be squeezed in o an e ec i e business cou se bu belie e ha he e mus be oom o p epa e he po en ial senio manage and chie execu i e o he ac ha we a e no a socie y o sain s. I seems ha he e is also a need o a cou se in medical e hics in ou medical schools i one is o ake in o accoun a ecen a icle by Jill Mcllw a h in he Sunday Exp ess(l3 Ma . 83). She epo s on he indi e ence o medical s uden s owa ds he ecen e ela ions in ega d o he ela ionship be ween some doc o s and some pha maceu ical companies. She says: 'The ailu e o many s uden s o see he ela ionship wi h comme cial in e es s as one aspec o he many e hical issues hey will ace when hey p ac ice mus be a cause o conce n by all hose in he p o ession who do wish o sa egua d high e hical s anda ds in medicine and hose in he ecei ing end o doc o s' ca e, he pa ien s.' In he wide sense, educa ion in he home and he school is clea ly o he g ea es impo ance. We ha e o build up and en ench wha The S a edi o ial called 'socie y's non- ma e ialis ic alues'. We ha e o see ha in he educa ion o ou child en we eally li e up o he claim so o en made ha we a e a Ch is ian socie y. We ha e o inculca e in hem a belie ha good p inciples a e wo h adhe ing o and ha co up p ac ices a e mo ally inde ensible. Business e hics which e m co e s no jus he business wo ld bu all o he economic ac i i y as well -mus be seen as cen al o a wo hwhile socie y. D Lea says o i in a ecen a icle: 'Business e hics is mo e han blowing he whis le on dishones y and g a . I is disciplined e lec ion upon wha cons i u es igh as opposed o w ong ac ions. In he business con ex , e hics can be de ined as a conce n wi h he way people choose be ween signi i- can al e na i e cou ses o ac ion. Nea ly all weigh y decisions in business a e alue-laden, ha is, hey in- ol e making judgemen s which a e no based sole- ly on ac ual in o ma ion bu on wha is conside ed igh in speci ic si ua ions.' 129 Audi I .ha e le audi o he end. Clea ly he audi p ocess p o- ~es . he bes . means o dealing wi h co up p ac ices. I am hmkmg pa icula ly o in e nal audi in he e ms o which I e e ed o i owa ds he beginning o his add ess as he iden i ie o p oblems, he es e o sys ems and he e alua o o in e nal con ols. I i is o do his, manage- men mus ins all he sys ems and he in e nal con ols and mu~ ensu e ha he in e nal audi eam is composed o high quab y people and is no de ia ed om i s p ope ask. As a gene al ule, he mo e he business is un on he basis o clea ly de ined sys ems and con ols, he less oppo uni y he e is o employees o b eak he ules o ea he hei own nes s. While I ecognize ha he compu e b ings i s own secu i y p oblems, i is undoub edly a majo aid in educ- ing oppo uni ies o sel -seeking beha iou . One young cha e ed accoun an in Johannesbu g who has bumped agains 'mode n business co up ion' poin s ou ha ex e nal and in e nal audi only b ing eal bene i s i he business is al eady e ec i ely managed and ope a ed. In he case o ex e nal audi , checking o dishones y among employees is only a seconda y unc ion while in e nal audi oo easily 'becomes a ubbe -s amping o he pape shu - le, combined wi h a pe iodic s ock e i ica ion and so loses much o i s c edibili y and e ec i eness'. He he e o e p o- poses some hing new - an ex e nal ope a ional audi which he de ines as ' he sys ema ic analysis o indi idual ac i i ies a an ope a ional le el on a ime/i em andom selec ion basis'. I would be aimed p ima ily a de e ing employees om misusing hei posi ions o pe sonal inancial gain. Such an ope a ional audi eam would no be composed solely o accoun an s bu would include enginee s and o he s who unde s and hose ope a ions whe e abuse and collu- sion is likely o occu . While his p oposal has some aul s, i is wo h ollow- ing up and as I canno de o e mo e ime o i in his ad- d ess, I will p o ide anyone in e es ed wi h he name and elephone numbe o he au ho . O he audi a angemen s ha e also been sugges ed a one ime o ano he . Some o my calle s in he las ew mon hs ha e sugges ed ha he ombudsman ac i i y should be g ea ly s eng hened so ha he e is a channel h ough which cha ges o pe cei ed co - up ion can be di ec ed. The F.B.l. in Hillsbo ough Coun- y, Flo ida, asks ci izens o dial 229 - 9241 which is hei •co up ion ho -line' ins alled a e h ee o he i e coun y commissione s we e cha ged wi h conspi ing o ex o money om ci izens seeking app o al o zoning app~ica- ions. The ho -line ope a es 24 hou s a day and ecei ed calls om 140 ci izens in i s i s week o ope a ion. Ho lines ombudsmen, in e nal audi , educa ion, legisla- ion - so :Uany possibili ies and combina ions, good and bad, bu wha is abundan ly clea is ha some hing mus be done.