Academic journal article Journal of Global Business and Technology


Academic journal article Journal of Global Business and Technology


Article excerpt

I am very pleased to offer this special issue on the very important contemporary topics dealing with Africa. Prof. Mokoko Sebola and Prof. Johannes Tsheola from the University of Limpopo in South Africa are to be congratulated for developing such an excellent collection for our readers. All of the manuscripts are very insightful and thought provoking. These articles will add immensely to the growing body of knowledge.

Research points to staggering losses of revenue in Africa, as much as US$50 billion per year, through illicit financial flows. The 1st paper by S. Makwembere & E. Kangamungazi uses the mining and timber industries to present the illicit financial flows situation in Zambia's mining and timber extractive industries and gives an overview of integrity systems that have a bearing on the Illicit Financial Flows (IFFs) situation in these industries. The paper examines illicit financial flows scenarios in Zambia's mining and timber extractive industries and suggests possible ways of enhancing integrity systems to combat the apparent corrupt practices. Zambia, with its wealth in the mining and timber extractive industries, would not be construed as an exception to the norm. Indeed, the paper establishes that the picture of illicit financial flows in Zambia is just as disquieting as that for the continent largely due to the collapse of the governance integrity systems.

The paper suggests that the integrity systems play an important role in different industries; and, that they are moderately developed in Zambia. At present, there are no comprehensive frameworks used by government that serve as tools to evaluate ethical compliance in the sectors holistically. There are various key elements that have a bearing on integrity systems in the industry, inclusive of the following:

* Organizational strategy on ethics - this refers to the embeddedness of ethics in organization vision, mission, values, strategic objectives and operational plans;

* Leadership commitment to ethics - this relates to the express commitment by organizational leadership to improve and maintain a culture of ethical conduct;

* The existence of formal structures implementing an ethics function - this element concerns the presence of formal structures that support ethics and the ethics function in the organization;

* The existence of an ethical culture - this concerns an organizational culture that focuses on ethical conduct through its vision, mission, strategy and structure as well as values, attitudes, management styles and employee behaviour;

* A code of ethics - this refers to the document that contains the prescripts on expected ethical conduct should employees find themselves in ethical dilemmas;

* Compliance programmes - these assist in early detection of wrong doing and create opportunities for internal handling of unethical practices;

* Training and education programmes in ethics - these involve providing training and education in ethics and a means to combat unethical practices;

* Communication of ethical issues - these refer to the communication strategies on ethical issues to raise awareness on ethical matters;

* Reporting systems of unethical conduct - these refer to the reports on unethical behaviour that are produced; and

* Disciplinary and reward procedures - these procedures would outline how ethical conduct would be promoted through performance appraisal.

The authors suggest that strengthened integrity systems supported by evaluative frameworks can assist the country in reducing corruption in the mining and timber industries, thereby avoiding IFFs. The following are recommended:

* Zambian government needs to synergise efforts among the stakeholders in tackling IFFs and improving platforms of information sharing and public education.

* Development of a mining tax regime that is stable, progressive and seals the loopholes of IFFs, especially transfer pricing. …

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