Abstract
This study investigates the relationship between moral schemas and corruption in public procurement. It adopts a moral schema framework to examine procurement-induced corruption from Uganda. Experiences, attitudes, and values of respondents are used to construct future behavior of public procurement staff. The schema framework was built around the premise that procurement-related corruption is a function of the social framework and human nature paradox, constructing logical justification for the acts of corruption. The study uses data from 474 public procurement staff to demonstrate that social identity, ethical egoistic, legislative, amoral, and religious moral schemas account for 78.51% of the variance in moral schema of respondents. All these schemas were found to be significant predictors, accounting for 73.3% of public procurement corruption. The paper urges managers of procuring and disposing entities to utilize moral scripts in reducing corruption. Managers are encouraged to engage in morally responsible behaviors to promote ethics and value-for-money transactions. The paper provides an alternative framework for examining corruption in sub-Saharan Africa where explicit elaboration of insights on corruption is still lacking.
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Appendix
Appendix
Sample Case Scenarios Used in the study
Procurement-DIT Scenario One: Bidding Process
Mrs. Anne Sansa is a procurement officer working with the Electoral Commission (EC). Her most recent assignment involves finalizing procurement of all the equipment and other electronic accessories required for the next national presidential and parliamentary elections. She is working on a bid document to supply the Electoral Commission with computers plus other electronic gadgets that will be used in next years elections. Her Uncle, Mr. Hamza Gitau who brought her up, after the death of her parents when she was 3 years, owns a computer firm that supplies assorted information technology accessories. Currently, her uncle’s business is in financial distress and is threatening to close soon, despite profitable trading, over the years. Her uncle’s business has suffered severe cash flow problems as a result of the recent adverse global economic conditions (credit crunch). Sansa knows that her uncle’s business has been on the EC’s list of pre-qualified providers for the last 5 years. However, Sansa has noticed over the years that the EC has had difficulties managing the list of providers which has been found wanting in respect of lack of rotation and the non-transparent updating of the list of providers. In some instances the annual pre-qualification exercise which is also referred to as registration has been misused by the EC and Contracts Committees to award contracts directly to providers. Sansa is also privileged to have useful information relating to this procurement which would give a competitive advantage to a serious bidder over other bidders. Unfortunately, this information cannot be availed to bidders in the bidding document which will be sent to all interested bidders. As has been the practice in the past, to be able to win this bid, bidders must see one of the PDU or contracts committee members in person during the preparation of bids. Without this additional information, all bidding firms become disadvantaged and chances of winning the contract remain dim (Table 3).
Anne Sansa’s meditation about her youthful days has created a state of desperation and is contemplating assisting her uncle, Mr. Gitau to win this contract. Failure to win this bid, it is unlikely that her uncles company will survive. This will result in 5,000 employees losing their jobs. This will not go down well and is likely to dent her uncle image since he intends to stand for MP in the next parliamentary elections. Sansa has informally asked her subordinate for documentary evidence on the rules governing bidding, contract evaluation and award. Her subordinate sends her a copy of the minutes of the latest directors’ board meeting in which procurement issues were discussed. The last item on the board minutes notes that “all subsequent procurements must adhere to the principles of value for money, competitiveness, transparency and ethics.” However, Sansa thinks that his uncle’s business would offer the best deal to the EC, although the company needs a push to win this contract. She is pretty aware how valuable her uncle has been in her life, without him she would not have been what she is and where she is. However, she also knows that her uncle’s company will not survive if this contract is not won. Should Sansa favor her uncle’s firm?
She should | can’t decide | she shouldn’t |
Review each of the considerations given below (left out due to space constraints).
Bribery
Mr. Muthaiga Githongo, a manager at Steelcorp, considers whether to order an employee to offer a payoff to a purchasing agent who has requested a cash payment in exchange for future purchasing agreements. Such an act is common in the industry. Muthaiga thinks that the law governing this act is unreasonably applied to companies like Steelcorp. Steelcorp is currently experiencing growing sales and revenues in an industry that is economically healthy. If successful, the act may result in a positive impression of Muthaiga by top management. Muthaiga also believes that the act will modestly increase Organization revenues. The Organization has internally implemented audits and inspections at random intervals but no action was taken against an employee who was discovered by the Organization engaging in a similar act. Muthaiga decides to order an employee to offer the payoff to the customer. You are requested to use the information in the case above to evaluate the following questions. What are the Outcome expectancies (details left out due to space constraints)
Friends in the Government
In this ministry of X, like in many other PDEs, private businesses are contracted to provide goods and services, through the procurement process specified in the Procurement Act. John Njoroge, Managing Director of PR procurement consultants, deals directly with these members of the PDEs and has become good friends with the chairman of the contracts committee, Isaac Kabwa. Their wives have become friends as well and their families enjoy one another. Isaac Kabwa occasionally joins John Njoroge for lunch, and John Njoroge’s company pays for it. This is similar to what members of either the contracts committee or PDEs do countrywide. However, a dilemma arose recently when John Njoroge invited Isaac Kabwa and his family to join them in a cruise around Europe, which has been organized by his private company. Isaac Kabwa knew it would be a great trip and his wife really wanted to go. He also knew that it could be seen by the public as a favor for a large contract that the ministry had just awarded to John Njoroge’s company. Should Kabwa go on the trip to Europe?
Should go | Can’t decide | Should not go |
Review each of the considerations given below (left out due to space constraints).
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Ntayi, J.M., Ngoboka, P. & Kakooza, C.S. Moral Schemas and Corruption in Ugandan Public Procurement. J Bus Ethics 112, 417–436 (2013). https://doi.org/10.1007/s10551-012-1269-7
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DOI: https://doi.org/10.1007/s10551-012-1269-7