Unethical practices stall Zimbabwe's development

Experts have identified unethical practices and insufficient corporate governance structures as significant contributors to Zimbabwe's underdevelopment. This observation was made during the inaugural Environment, Social, and Governance (ESG) & Sustainability Conference held in Nyanga last week, where calls for improved ethical behavior within organizations were echoed.

William Mandisodza, the Chief Executive Officer of the Institute of Chartered Accountants of Zimbabwe (Icaz), emphasized that leaders must enhance ethical habits and corporate governance to promote ESG development. The conference, themed "Driving Sustainable Integration of ESG Practices in Zimbabwe," was jointly organized by the Institute for Sustainability Africa, Icaz, and the Institute of Directors Zimbabwe (IoDZ).

"The tone starts at the top, and the behaviors demonstrated by leaders can perpetuate a culture of unethical behavior," Mandisodza remarked. He stressed the necessity for leaders to model ethical conduct, which would encourage subordinates to adopt similar practices, ultimately fostering sustainable development.

Mandisodza illustrated his point by highlighting the negative impact of unethical behavior among leaders, such as submitting fraudulent expense claims. "If leaders violate policies, they set a poor example for their teams, which may lead to a culture of non-compliance," he noted. He encouraged corporate leaders to take ownership of their actions, stating, "Creating an ethical environment starts with one's behavior. All is not lost; we can still recover and cultivate ethical conduct at all levels."

The IoDZ further reinforced the significance of ethical leadership, emphasizing that it cultivates a culture of accountability and retention among employees. "Leaders who practice ethics can influence employee behavior and shape a positive corporate culture," the IoDZ stated.

The institute urged leaders to apply ESG principles within their communities, advocating for responsible resource management and infrastructure development to enhance local livelihoods. The IoDZ criticized leaders for exploiting resources while neglecting the communities they operate in, calling such practices unethical.

"In Australia, obtaining a concession requires a development plan that includes infrastructure such as roads and schools. Why aren't we doing the same for our own mines?" questioned the IoDZ. They pointed to the lithium mines in Matabeleland, noting that children in the area still learn under trees while nearby mines operate profitably, highlighting the urgent need for change.

The conference underscored a collective commitment among participants to promote ethical practices within organizations, aiming to reshape Zimbabwe's corporate landscape and ultimately contribute to the nation's development.