Thursday 13 July 2023

Why good governance is essential in International, Continental, and National Esports Federations.

Delegates to the founding of bodies are often treated to lavish dinners, and privately receive cash payments, but all would do well to remember that "there is no such thing as a free lunch".

With two more African Esports Continental bodies being founded in 2023, bringing the number of African Continental Esports Federations up to 6, National Federations are being implored by Confederation of African Esports (CAES) President, Ms. Amanda Pakade, and CAES General Secretary, Colin Webster, to ensure that all new bodies show suitable compliance to Good Governance. Ms. Amanda Pakade stated, "Only while being absolutely vigilant and anal about enforcing Good Governance practices can Corruption be stamped out."

Corruption refers to dishonest or unethical conduct by individuals or organizations, typically involving the misuse of entrusted power or resources for personal gain. It involves acts such as bribery, embezzlement, fraud, nepotism, extortion, and abuse of power. Corruption can have significant impacts on organizations, including:

  1. Financial Loss: Corruption often leads to financial losses for organizations. Funds that should be allocated for legitimate purposes may be diverted, embezzled, or misappropriated, resulting in reduced resources for essential operations, projects, or services.

  2. Erosion of Trust: Corruption undermines trust in organizations. When stakeholders, including employees, customers, and investors, perceive that corruption exists, they may lose confidence in the organization's integrity and credibility. This can damage relationships, tarnish the organization's reputation, and lead to a loss of business opportunities.

  3. Inefficiency and Ineffectiveness: Corruption hampers the efficient functioning of organizations. Decisions may be made based on personal interests rather than organizational goals, leading to suboptimal outcomes. Resources may be allocated inefficiently, contracts may be awarded unfairly, and merit-based systems may be compromised, resulting in reduced productivity and overall effectiveness.

  4. Unfair Competition: Corruption distorts competition within markets. When bribes or other illicit practices are used to gain unfair advantages, it creates an uneven playing field for businesses. Organizations that engage in corrupt practices may secure contracts or deals that they would not have won through fair means. This undermines competition, stifles innovation, and hinders economic growth.

  5. Legal and Reputational Risks: Engaging in corrupt activities exposes organizations to legal and regulatory risks. Corruption is illegal in most jurisdictions, and organizations involved in corrupt practices can face severe penalties, including fines, legal actions, and reputational damage. Legal consequences can lead to significant financial liabilities and even the dissolution of the organization.

  6. Negative Work Environment: Corruption can foster a toxic work environment within organizations. When corrupt practices become embedded in the organizational culture, it can lead to the normalization of unethical behavior, low employee morale, and a lack of commitment to organizational goals. This, in turn, can result in high turnover rates, difficulties in attracting talent, and a decline in overall productivity.

Addressing corruption requires strong ethical leadership, transparent processes, robust internal controls, and a commitment to integrity. Organizations that actively combat corruption can enhance their reputation, foster trust, and create a culture of ethics and compliance, leading to long-term sustainability and success.

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