Category Archives: world economy

Fighting bribery and corruption in our society today.

A business plan on a designed an innovative monitoring model to prevent corruption an ensure compliance in a specific part of the private sector.

Case study: a firm in a brewery industry by name Jonathan liquors.
Plan objective: prevent and eradicate corruption an associated practices.

Introduction.

Defining the act of corruption as dishonesty, depravity for personal gain, exploitation, bribery, sleaze, fraud, and venality makes it really broad to go around. The taking of a Bribe or Gratuity, should be punished with as severe penalties as the defrauding of the State. This will help to demonstrate how grievous the crime committed seems to be and repeated cases should not be taken for lightly. One of the sole reasons why such practices are aggravating is because the defaulters go unpunished and if done; their punishments are minimal to their crime.
What makes all doctrines plain and clear? I believe it involves documentation and necessary steps taken for it to be effectively followed.
What makes that which was proved true before Prove false again?
With creative accountancy, who needs cheating?
You won the elections, but I won the count
Do we want to build a market economy or an economy dominated by the mafia?
The above questions are examples of corruptive practices. All things can corrupt perverted minds. I think this flexible business plan will do much in the monitoring and preventing corruption by collective actions with both organization (private and public) and Stake holders( those people who can influence the company or can be influenced by the company decision an their action are a great deal to the attainment of these objective). Most concerned stakeholders Examples will be those as shareholders, management, other employees, customers, suppliers, government, and lenders of funds, the community organization with their interest being in the form of affecting or being affected by the organization in one way or the other.
This plan was designed after incorporating recent corruptive practices happening in recent times such as the high level of legal corruption in Ireland were ,according to a report from anti-corruption pressure group transparency international, without breaking laws, undue influence is exerted through personal relationships, patronage ,political favors and political donations .observers told the groups that problems are also made worse by the absence of transparency regarding political funding, also ,the need for pricewaterhousecoopers to establish an advisory board for its Indian firms, following the reputational damages incurred from the scandal involving its former clients, Satyam. also, The recent Madoff fraud ,the seven people charred with Dubai Islamic bank out of Dh 1.8bn($500m),the largest alleged corruption case to go to court in Dubai. These examples have guarded the outline solutions below.
Moreover, agreeing a new structure for global coordination of financial regulation by the G20 leaders was a great approach to solving these problems. It says that the financial regulatory framework needs to be redesigned to cater for increasingly complex financial structures, with steps taken to improve the transparency and stability of financial markets .these should be achieved by recognizing the mechanism for transparency, comparability and clearer financial reporting.

Plan part one
Identifying a suitable organizational structure with necessary department and anti corruption units put in place to attain the above objective.

the organizational structure can not be displaced now as it contains structures that are built in from publisher , word documents and other software which are compatible with this site .you could get that by requesting through my address at arnoldfon@yahoo.comPlan part two
Describing the functions of the chart how it could be used to attain the above objective by collective action and use of stakeholder effect.

The target mission of an organization should usually be broken down in to various goals .these goals are then obtain by setting objectives ,were after targets are then set. To achieve these objectives, the enterprise must work by developing and implementing appropriate strategies which will then be developed at all level of business .firstly through corporate strategy, concerning the decision made by senior management which is often of important financial implication. At the stage includes the business strategy concerning the decisions to be made by the separate business strategic unit within the group. This is done by trying to maximize its competitive position within its chosen market. Lastly is the operational strategy concerned with how the different functional areas within the strategic business units plan their operations to satisfy the corporate and business strategy being followed. For this to succeed there is need to eliminate at each level, separate individual and self esteem needs to concentrate to an entire organizational goal. Hence each group is said to work effective and efficiently to attain the overall corporate objective, activities within each line of manage coordinated to attain the above objective of preventing corruption.
The external auditor needs to be careful in reporting inside information to external or outsiders except it is legal to do so. if fraud is identified the auditor should report it to the audit committee if one exist, to the highest level of management ,the share holder if the fraud is being committed by the highest level of management and no audit committee is in place.
A checklist of procedures is to be filled in when a new appointment is accepted covering such issues as proof client identity, consideration of relationship with the firm, its self, other clients.

Plan part three
Implementation of above structure with and recommendations using necessary actions and outcome
– The chart begins with the toper most function of the managing director who at the same time might be the chairman of the board .he takes the overall decision after the board has met to name a few of his function. He is at the highest level of the organizational hierarchy so can make very profound decisions but which might not be for the good interest of the organization as a whole. Moreover, corruptive practices are generalized to be to high at this level of hierarchy .to prevent this there exist the need for the second line in the organizational hierarchy of the directors .where, the managing director sits with this board to make decisions. And makes conclusive decisions from these drawn out on this board .the fact that they are stewards of share holders and should serve in the capacity of the best interest of share holders should be taken note of. Hence, there are obliged to direct the company and take decisions which are not of interest to themselves but to a board at large and the company as a whole.
-They need for the second line made of two types of directors come in. These level seems to act between two main functions as the act as a liaison between each manager and the managing director .corruptive practices are seen to be high at this level to .there comes the need for two different groups at this level that is the executive directors and the non executive director .these is in favor of a good corporate governance approach which might reduce misunderstandings .usually the proportion of this two bodies should be equal ,moreover the non executive directors most be independent and be experts in their field comprising of auditors ,a member of the anticorruption unit, an employee if need warrants and being led by external experienced practitioners .the main concern for equal proportion is to limit inequalities and self-interest were the majority might collide to take decisions which are of interest to a specific group by means of a vote ,were these level is that organizational tactical decision could be made .organizational laws an principles including, procedures of proceeding of criminal activities should be guided an formed at this level to allow for the right procedures to be taken .it should be understood that these is the level at which most of corruptive practices are to be prevented and if already exist eliminated. This is because most of the decisions are left in their hands hence a need for an independent non executive director including a member of the anti corruption unit.
– At the third level of the above structure are individual managers of the various departments and committees. The happen to be many divisions at this level as the individual directors are sub divided into other sub teams .this is to enable an effective carry out of their functions of control .moreover another reason for the excessive dilution of responsibly at this level was to avoid any form corruptive practices through collusion .when departments are to close the could easily collude together to take unapprised and corruptive decisions .the striking an most essential point at these level is the creation of an anticorruption department .these department was really found necessary for any organization to eliminate any corruptive practices .further divided in a disciplinary and report department was seen significant for the same reason .these department has really been lacking in organizations and their duties often performed by the internal audit department .but after noticing that decisions and findings by the internal auditors are often threatened as there are employed and remunerated by the very directors who define to them their functions. Hence a great need for this department to overcome such constrains.
– This organizational chart sort to be designed to achieve its sole objective of avoiding, catching and punishing any organizational malpractices associated with corruption. This will be practical due to the independency and professional skills of members of the anticorruption department to act in this capacity. They are structured as follows, each member present in each department or, in smaller organizations to reduce cost placed in strategic department such as the finance department, personnel department and internal audit department .the individual members then report to the overall department in charge of anticorruption. their functions lies in their professional capacity to operate without distortion of organizational activities to bring out within events of operational activities, any controversy not in line with their objectives .To bring any cases of default to the right track and if above them channel and report all defaults to the main department in charge of this function .Here, it is deliberated an decisions taken on how to pursuit the case put in place. They should be an ethical code of conduct put in place to guard members of this department.
– Their independency should not be threatened as they are not members of the organization but work in that capacity. In that path they only report to responsible parties an were respective actions are not taken to restore this defaults, they make claims and channel their results to the strategic level of management .If the default is at these level then the share holders are made known and the results are made public especially to external auditors to get further evidence in giving their opinions on whether the financial statements are true and fair .The member of this department placed within non executive directors is to destabilize any restrictive practices placed on these department by senior level of management, and to kick against any corruptive practices at this level. Moreover decisions made by senior level of management that might deviate the functions of members of this department going against their objectives should not be followed by this department and taken as attempt to corruptive practices and should lead to thorough investigation. External auditors should report to this department any cases of concern to them for proper investigation to take place.
– Usually there should exist in each country a general department for anti corruption an extreme cases should be taken to these body for court action to be taken .in that sense these to should be made of independent and neutral members of the state and in extreme cases external professionals contracted . They should be governing code of conducts on their profession. Due care of professionalism should be taken in performing their function. Each member of the state could have access to these department to report cases of malfunctions and seen to perform any corruptive practices for investigations to take place. Extreme cases should be publicized in business magazines and news papers for public concern and for the general knowledge of respective stake holders. Crimes of a corruptive nature should usually be seriously punishable. This should usually be done with regards to the gravity of the crime.
– Furthermore along the same line of hierarchy lies the personnel function sub divided into the remuneration department necessary for paying of salaries and the recruitment department with a responsible for recruiting new staffs and training old and new once if necessary. With remuneration a lot of care should be taken these is money and a great deal of corruptive practices are associated with these fact. While those at the operational level are remunerated by the remuneration committees on their job done and any other overtime payments including bonuses and promotions for job well done, remuneration at the strategic level seems to be quite different. Executive directors pay should be subject to the recommendations of a remuneration committee made up wholly of independent non executive directors, the remuneration committee effectively determines executive remuneration and individual packages for each executive director .Moreover there should be clear disclosure of directors total emoluments and those of the chairman .Non executive directors should get extra fees for these and for chairing companies committees but should not hold share options in their companies. For this could encourage corporate excess or wrongdoing .usually certain managerial reward schemes that promote manipulation such as bonus based upon a minimum level of pre-tax profits should be restricted. Carefully designed remuneration packages should
Be clearly defined, impossible to manipulate and easy to monitor
Link rewards to changes in share holders wealth
Match managers time horizon to shareholders time horizon
Encourage managers to adopt the same altitude to risk as shareholders.
When outlined this will help managers attain their objectives in the best interest of share holders which overall will restrict them from corruptive practices.
– For the personnel department the need for a recruitment office is quite important as these serves a potential area were bribery for getting a job is common. There should be basic principles drawn down and the necessary qualifications and necessities of a vacant position taken down. When taken the newly employed are then reviewed if the attain the above requirements. it should noted that again with executive directors a nomination committee needs to be put in place made of non executive directors with aim of bringing an independent view to the selection and recruitment of both executive and non executive directors .the committee should be of high profile to demonstrate to shareholders that a reasonable degree of objectivity exist in the selection process. With shareholders having rights to vote out any director at the annual general meeting.
– The internal audit department also should not be neglected .For it to be appropriate enough in performing its duties, it most be independent and not remunerated by management that outline its function. moreover it should amongst its other functions make sure internal control are well organized and coordinated .This is because any organizations were internal controls are week, there is likely hood for fraud in organizational activities and a risk of financial misstatement. The function of internal audit should sometimes be outsourced in a case were it is recognized that their independence is threatened.
– One way of reducing corruption is by means of in cooperating internal control into the companies systems and procedures. It is easier to use a committee to set salaries so that the decision does not rest with one person .That person could take bribe from other directors for giving undeserved pay rises Hence the necessity of having a remuneration and audit committee. Selecting, compensating, monitoring, and when necessary replacing key executives and overseeing succession planning

Plan part four
Description of challenges and Solutions that could be encountered by above structure and the different stakeholders effects with their conflicting goals.
– The surest way to ruin a man who doesn’t know how to handle money is to give him some. Certain corruptive practices are quite inherent and by their nature can easily go on caught such as effective collusion of different stakeholders within and organization to manipulate accounts. But the above structure has been put in place to prevent such practices
-Usually it is the accumulation of small gratuities rather than any direct bribe that gradually obligates the people in power. There comes the need for effective coordination and remuneration of responsible parties within the organization. Nothing should be left on noticed as the smallest gratuity could later arise to a delicate issue.
-Power corrupts, but lack of power corrupts absolutely. Power by its nature gives an altitude of responsibility were there exist a desire to get excessive benefits from that power and extort the minds of the unprivileged. Those without this power are more open to the worthlessness of benefits that might influence their thoughts to undesired benefits
The most awful thing about power is not that it corrupts absolutely but that it makes people so utterly boring and sometimes so predictable .Unlimited power is apt to corrupt the minds of those who possess it.
-Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men. There is no worse heresy than that the office sanctifies the holder of it.
-The acceptance of gift and hospitality is a self interest threats .gifts should not accepted unless modest otherwise it may be seen as a bribe to keep quite about issues in the organization. One can hardly shy away from such things as gifts especially from intimate friends.
In other to determine whether a gift is modest the firm should refer to their firm’s ethical guidance on acceptance of gifts from clients.
-familiarity threats are the most powerful form of corruption as there is a great burdened on you if you do not perform such practices. This might be from friends, family members, and senior members of the organization. This should be linked to the threat of sentiment below
-They had been corrupted by money, and he had been corrupted by sentiment. Sentiment was the more dangerous, because you couldn’t name its price. A man open to bribes was to be relied upon below a certain figure, but sentiment might uncoil in the heart at a name, a photograph, even a smell remembered.
-While those charge with governance that is those whose role is to supervise management to ensure that they operate the business in the interest of shareholders and other stake holders ,this is usually not the case as the act sometimes purely in their own personal interest.
-When the President does it that means it is not illegal. So to be corruption when it is done at the senior level and nothing done it becomes a legal routine .junior staffs are now freely open to take bribes in performing their duties.
Once a political system has been corrupted right from the very top leaders to the lowest rungs of the bureaucracy, the problem is very complicated. The cleansing has to start from top and go downwards in a thorough and systematic way.
-As long as we have a democratic system in the culture of our organization and might be our government, there will be people seeking favors and such favors will never be given to all. Democracy substitutes election by the incompetent many for appointment by the corrupt few. For Necessity makes an honest man a knave.

Plan part five
Conclusion
With much explanation laid out above my conclusion will be to advice the multitude which still indulges in such practices. The potential for the disastrous rise of misplaced power exists and will persist no doubt, but it should be clear that it not that which lays, that passes through the mind, but the lie that sink in, and settles in it, that does the hurt. The safest road to hell is the gradual one infact the gentle slope, soft underfoot, without sudden turnings, without milestones, without signposts. The politician who steals is worse than a thief. He is a fool indeed he is. With the grand opportunities all around for a man with political pull, there’s no excuse for stealing a cent.
The customs officials themselves expect neither more nor less than their fair share. Everything is perfect coming from the hands of the Creator but degenerates badly in the hands of man. Let man be careful. The importance of good business ethics and corporate social responsibility has been recognized in recent years and it is hoped that further progress is being made in the new millennium. Corruption, the most infallible symptom of constitutional liberty could bring about collapse of an empire. It will, I believe, be generally agreed that eradication of corruption from any society is not just a difficult task but it could and without disputes.  Really we can HELP .Together lets assist the anti corruption units to fight bribery and corruption.

what are your view pionts about the recent economic crises .

its high time the revolution about  this economic downturn be highly addressed .its continuity as yet for how long is uncertain .what thus remains our opinion towards its eradication .the damages caused are really enormous causing an high number of employees going redundant.

What are the attributes .

Can youth action as a major concern be of assistance.

What are economist doing toward preventing these from further occurence .

together lets share our own views.