ZIMBABWE’S underdevelopment is largely due to unethical practices and inadequate corporate governance structures, experts have said, amplifying the push for ethical behaviours seen as key for the adoption of environment, social and governance (ESG) practices within organisations.
Speaking during the inaugural ESG & Sustainability Conference held in Nyanga last week, Institute of Chartered Accounts of Zimbabwe (Icaz) chief executive officer William Mandisodza said leaders needed to enhance ethical habits and proper corporate governance practices for ESG development.
The conference, held under the theme, Driving Sustainable Integrating ESG Practices in Zimbabwe, was hosted by Institute for Sustainability Africa in partnership with Icaz and the Institute of Directors Zimbabwe (IoDZ).
“I think the messaging which we are trying to do in this conference is that the tone actually starts at the top and the behaviours as leaders, which we show our support network, perpetuates the culture of unethical behaviour,” Mandisodza said.
He stressed the importance of leaders modelling ethical behaviour in their fields so that subordinates could learn and emulate these qualities, ultimately driving sustainable development in the country.
“If you are a leader or a CEO [chief executive officer], if you are stealing the expense claim for taking it through approval, getting the sign-offs all the time, sending it to finance and getting your expenses approved, you are telling those people in finance that you actually do not conform to policy, and they are likely going to follow what you do,” Mandisodza said.
“So, if you are a leader who then just goes to accounts, say, can I have 200 litre coupons, no justification and then you don’t come back and report to the same person, you are creating an environment where they also want to benefit as you do. So, the message in which we are trying to give this room is that it’s possible to create an environment which is ethical.”
He said creating this ethical environment could be done with one’s own behaviour.
“Yes, we are operating in an environment and a country where ethics have just gone away, but we should recover from that position and start inculcating ethical behaviour at the level we are. I just wanted to encourage you in what you say. All is not lost,” Mandisodza said.
“We can still solve this situation. And my colleague is now talking about starting from home, but we are corporate leaders. Everything you do on a day-to-day basis is seen by your supporters. They learn more from what they see than what you tell them. So, if they see you doing the right thing, then they create their own capacity to start doing the right thing.”
The IoDZ highlighted the importance of ethical leadership in organisations, stating that it fosters a culture of retention and accountability among employees while promoting positive behaviour.
“Ethical leadership contributes to a culture of retention within organisations, fostering accountability among employees. Leaders who practise ethics can influence employee behaviour and shape a positive corporate culture,” IoDZ said, in a statement.
The institute urged leaders to take responsibility for applying ESG principles within their communities to enhance local livelihoods through proper infrastructure development.
IoDZ criticised leaders for neglecting the communities they operate in, deeming it unethical to exploit resources while leaving those communities in disrepair.
“In Australia, before you get a concession, they will give you a development plan of that area. You will leave roads; you will leave schools. Why are we not doing that for our own mines?” IoDZ said.
“You find the lithium mines that are in Matabeleland, go to Matabeleland and look at their schools. They are still, in this day and age, they are still kids that are learning under a tree, next to a big mine, why? Certainly, something needs to happen.”