Ethics in the state-owned companies in the public sector: A thin line between corporate governance and ethical leadership

Abstract

Ethics suggest that all persons are by nature moral as it would not be possible for humans to exist collectively or even individually without an innate ethical sense. In order for the public sector to thrive in business, the board of directors needs to be guided by ethics and take into account the abiding interests of humanity and the good of the public. It is argued in this paper that the abuse of power in the public sector has often been associated with unethical leadership and conducts which undermine the notion of Ubuntu. The irregularities which often arise in the awarding of tenders in the state-owned companies are some of the challenges facing the public sector. In order to address these challenges and promote a flourishing democracy, it is argued that ethical leadership as envisaged in the King III Report needs to be adhered to by the board of directors. This paper concludes that the direction and control of ethics in any organisation is vital especially where the line between corporate governance and ethical leadership has become blurred.