According to an article from Mail & Guiardian (https://mg.co.za/article/2019-02-01-00- the-bosasa-tally-r12-billion/) facilities management company Bosasa, spread...
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According to an article from Mail & Guiardian (https://mg.co.za/article/2019-02-01-00- the-bosasa-tally-r12-billion/) facilities management company Bosasa, spread its tentacles into every corner of the state, including education, catering, database management and juvenile detention centres, amassing more than R12-billion in just over a decade. The Mail & Guardian can reveal how Bosasa milked close to 40 national and provincial government departments in payments ranging from R161 for security gate remote controls to a single payment of R124-million for a fencing contract with the department of correctional services.Over about 15 years, Bosasa, allegedly through corruption and the bribery of politicians and government officials, scored more than R12-billion in questionable state contracts, including at Limpopos department of social development, Gautengs education department, the Northern Cape arts and culture department and the national department of agriculture, forestry and fisheries. Bosasas net of contracts is wide, including the installing of top-of-the-range fencing around prisons, managing databases, cooking for prisoners and supplying stationery for department of justice and constitutional development officials. Although the big-money contracts have previously made headlines, there are many other smaller contracts. For the past five years, Bosasa has also been getting small payments of between less than R2 000 and R10 700 from contracts awarded to Bosasas subsidiary, Sondolo IT and Global Technology Systems, for stationery. The latest payment was on January 9 this year. The company, which now trades as African Global Operations, has recently been implicated in corruption by former employees, who revealed how, through bribes and tailor-made tender specifications, Bosasa had a monopoly not only at the department of correctional services, but also at home affairs and other government offices. Bosasa, led by Gavin Watson, and its associated entities have milked more than R7.2-billion from correctional services since 2003 to date from a total of 6 515 payments, and close to R2-billion from home affairs from a total of 250 payments. The M&G understands that this list is not exhaustive and there may be dozens of other invoices that have not been reflected and are still to come.
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QUESTION 1
Explain which mode of ethical management the company in this article exhibit. In your answer you need to motivate your choice with examples from the article and discuss the nature and purpose of the mode, the typical management approach, and the challenges that a company consenting to this mode of ethical management, faces.
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