Corporate Corruption And Survival Of Profit Making Organizations

(A Case Study Of Nigerian Police, Imo State Command)

5 Chapters
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82 Pages
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12,219 Words
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In the intricate landscape of corporate operations, navigating the complex terrain of corporate corruption presents a formidable challenge for profit-making organizations. The interplay between ethical integrity and financial gain shapes the trajectory of businesses, as they strive to maintain legitimacy while maximizing profits. Corporate corruption, encompassing various forms such as bribery, fraud, and embezzlement, poses a significant threat to the survival and reputation of organizations. Instances of unethical conduct not only erode trust among stakeholders but also attract legal scrutiny, financial penalties, and reputational damage, ultimately jeopardizing long-term sustainability. Mitigating such risks requires robust compliance frameworks, transparent governance structures, and a commitment to ethical conduct at all levels of the organization. By fostering a culture of integrity and accountability, companies can fortify their resilience against the corrosive effects of corporate corruption and uphold their mission of profit generation within ethical boundaries.

ABSTRACT

The issue of corporate corruption has been a major bone of contention in Nigeria Police Force. This research work examines corrupt practices and activities among the Nigeria police and the overall effects of corporate corruption on how the outfit carries out its mandatory responsibilities in the society. Particular concern was shown on the effect of corporate corruption on maintenance of law and order by the police, the factors responsible for corporate corruption practices and activities among the Nigeria police personnel in Nigeria, and the extent of corporate corruption within the Nigeria police or survival of profit making organizations. The focus of the research study is Nigeria police, Imo State Command. As a qualitative survey (in-depth interview approach), the study population was limited to 212 respondents selected through sampling method. The respondents in the study composed of both the civilians and the police personnel. The study revealed that the concept of police and what a stand is for is not strange to the populace (particularly the population of this study) as they could recount the services rendered by the police in the society off-hand. Most of the respondents have had dealings with the police based on various reasons. To some respondents, the nature of their profession has made it impossible for them to avoid coming in contact with police (such as commercial motorists); others as a result of following some relations and neighbours who had one problem or the other to sort out in the police station. Nowadays, the police personnel stand into negotiation and accept homeages from the hoodlums in the street, even in the open places. However, majority of the respondents does not see the police (as an entity) and their personnel as worthy of being associated with based on their corrupt practices, activities and crafty nature. the entire civil populace arm of this study see the police as very corrupt, while among the police arm, existence of corporate corruption within the force was affirmed, but blanket generalization of the entire system was rejected. Among the factors mentioned as responsible for prevalence of corporate corruption among the police in Nigeria, inadequate finance of the police which in part result to irregular payment of salary ranked highest. Data from the survey equally revealed that the corporate corruption is affecting the efficiency of the police in many ways. A commonly mentioned effect of corporate corruption on the performance of police the ever increasing crime rate, inquiry into police’s commitment to control crime in Nigeria shows diverse responses. Some respondents believe that the police are committed to duties while some did not. Some respondents assert that the police can do better with improved technology in their condition of service. However, the study shows that people have developed lukewarm attitude towards reporting cases to the police as at when due, as a result of lack of faith in the police. On the basis of this, suggestions were made on how to make the society habitable for the generality in view of the fact that police cannot operate without the support of the civil populace and vice-versa.

TABLE OF CONTENT

Title Page
Approval Page
Dedication
Acknowledgments
Abstract
Table of Contents

CHAPTER ONE
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of the problem 4
1.3 Purpose of the study 5
1.4 Research questions 6
1.5 Research hypothesis 7
1.6 Significance of the study 8
1.7 Scope of the study 9
1.8 Limitations of the study 9
1.9 Definitions of terms 11
1.10 Brief history of Zenith Bank Plc Enugu
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
2.2 Conceptual framework
2.3 Theoretical framework
2.4 Researchers position

 CHAPTER THREE
3.0 Research methodology 25
3.1 Introduction
3.2 Research design 26
3.3 Sources of data 26
3.4 Methods of data collection
3.5 Area of study
3.6 Population and sample size 28
3.7 Sampling techniques 29
3.8 Validity and reliability of measuring instrument 31
3.9 Method of data analysis 31

CHAPTER FOUR
4.0 Data Presentation, analysis and interpretation 33
4.1 Introduction
4.2 Presentation of data 33
4.3 Analysis of data
4.4 Test of hypothesis 42
4.5 Interpretation of result(s) 47

CHAPTER FIVE
5.0 Summary of findings, Conclusion and
Recommendations 48
5.1 Introduction 48
5.2 Summary of findings 49
5.3 Conclusion 50
5.4 Recommendations 51
Bibliography 55
Appendices 57-60

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Corruption has become a watch word in the Nigeria society. It pervades all strata of society, from the highest levels of the political and business elites to the ordinary person in the village. There are divergent opinions on what constitute corruption just as in commonly the case with other concepts in the social science. This according to Akindele (1995) has long been ideologically, morally, culturally, politically and intellectually elusive to the point of losing sight of its detrimental and parasitic influence on people and the society at large.
Divindi citing Aluko (2002) argued that corruption includes nepotism, favoritism, bribery, craft and other unfair means adopted by government, employees and the public alike to extract some socially and legally prohibited favours.
However, there is the need for a legal and or formal institution to at least help to ensure meaningful socio-economic and national development. Thus, the foundation for meaningful socio-economic and national development in any society is hinged on security of lives and properties of the citizenry which is to be strictly monitored by the ministries and agencies vested with such responsibilities.
Nigeria like in many other nations, the police have been the major organization charged with the responsibility of maintenance and preservation of public peace. The Economic Finance Crime Commission (EFCC) charged with the responsibility of checkmating the excess of public servants, the Standard Organization Nigeria (SON) charged with the responsibility of controlling maladies of production/manufacturing organizations etc. efficiency and effectiveness of the above mentioned institutions is therefore, necessary in every society for maintenance of peace, control of corrupt practices etc in that society, as these will make sure that all members of the community as safeguarded in their persons and properties so that their energies are not exhausted by the business of self-protection (Ehindero, 1986).
The above implies that maintenance of peace does not only entail the protection of life and property but also embraces the prevention and detention of crime, apprehension of the offenders and the due enforcement of all laws and regulations with which they are directly charged with. The assumption here is that, effective execution of the above mentioned functions is tied to the smooth running of daily activities in every society, be it economic, social and political. These organizations as an entity, each confronted by a lot of problems which invariably affect their efficient and effective functioning.
Despite all the shortcomings, police is often considered a necessary evil as people were prepared to put up with occasional excess in hope of achieving a degree of order and security. At the said time, one cannot ignore the lives and cries that permeate the entire country over the perceived corruption of Nigeria police. There has been widespread concern over the state of insecurity and seemingly inability of the police to deal with the problems. In response to this, there were several calls for reform of police in order to achieve the objective for its estbalsihemnt.
The political cries of the 1960s and 1980s in nigeria have raised serious questions about the quality and fairness of police performance. Other factors such as increasing crime rates police corruption, police militancy /brutality and cost (both human and material) of policing the community have served to keep issues of police reform alive. In virtually every part of the country, people tend to look elsewhere – travel abroad for alternative sources of protection for their lives and properties. Many prefer to keep any information that is vital for crime prevention to themselves. Many have resorted to jungle justice.
It is therefore, in the light of the above that the research focuses on corporate corruption and the survival of profit making organization with emphasis on selected firms.

1.2 STATEMENT OF THE PROBLEMS
Corporate corruption has become a socio-economic malaise which has infiltrated the whole Nigeria society and has constituted serious impediment to development. Apart from economic and material effect, corruption also has political implications and constitutes direct threat to the legitimacy of government and leaders. It does not only constitute a drain on limited government and societal resources which could have been utilized for other more profitable ventures in the economy, it also gives a country a bad reputation and may mar her diplomatic image and scare investors.
With particular reference to the Standard Organization of Nigeria (SON), Economic Finance and Crime Commission (EFCC) etc. The public confidence and trust which were already low and has become virtually destroyed, scholars have asserted that the perceived ineffectiveness is occasioned by basically the incidence of corruption within the agencies (Soyombo, 2003). The incidence of corruption according to them has gradually infiltrated and overwhelmed the entire security systems to the extent that their constitutional right to prevent and maintain law and order has drastically become weak and their effectiveness questioned. In view of this, what is the future of the Nigeria if security agencies are corrupt? How can we build agencies that are devoid of corruption? How can the Nigerian security agencies are recognized in other to be free of corruption.

1.3 RESEARCH QUESTIONS
The general objective of this research work is to understand the effect of corruption on Nigerian Police, Imo State Command as primary responsibility of maintenance of law and order.
Specific objectives:
1. To examine the factor(s) that is/are responsible for the prevailing corruption within the Nigeria Police, Imo State Command.
2. To investigate the level of corruption within the Nigeria Police, Imo State Command.
3. To examine the effect of corrupt practices on how the Nigeria Police could carry out its primary task of maintenance of law and order.
4. To streamline an effective and efficient Imo State Police Command.

1.4 RESEARCH QUESTIONS
The research question which will guide the researcher to cover all aspects of corruption and maintenance of law and order are:
1. What are the extents of corruption within the Nigeria Police, Imo State Command?
2. What are the factors responsible for corrupt practices among the Nigeria Police personnel?
3. What effect is corruption having on their primary duty of maintenance of law and order?
4. What are veritable steps to ensure total reorganization and proper reorientation of Nigeria Police, Imo State Command systems?

1.5 RESEARCH HYPOTHESIS
Hypothesis 1
Ho: There is no relationship between corrupt practices and the activities of the Nigeria Police, Imo State Command.
HA: There is a relationship between corrupt practices and the activities of the Nigeria Police, Imo State Command.
Hypothesis 2
Ho: Nigeria Police, Imo State Command is not effective in fighting corruption within its rank and file.
HA: Nigeria Police, Imo State Command is effective in fighting corruption within its rank and file.
1.6 SIGNIFICANCE OF THE STUDY
Bearing the above stated problems in mind, the significance of this study will be of immense advantage to the management of Nigeria police, Imo State Command. Hence, the essence of undertaking this research work is to assess the effect of corporate corruption and survival of profit making organizations. The escalation of time in Nigeria has been attributed to corruption induced ineffective of the Nigeria Police, Imo State Command, the fear of insecurity will create uneasiness in the state. However, the significance of the study is the following:
1. Corporate corruption has economic implications on the society as it leads to low productivity on the part of the individuals/ citizenry.
2. The understanding of environmental factors that influence prevalence of corruption among the security agents or officials will enhance the governmental policies aimed at fighting corruption in Nigeria.
3. Furthermore, it will contribute to the existing knowledge by serving as baseline data for those who intend to make further studies on corruption practices among the Nigeria police and survival of profit making organizations, thus, heir traditional roles in the society.
1.7 SCOPE OF THE STUDY
The research work is for the benefit of the Nigerian police, scholars and consumption of the general public. Its cope is on the understanding of corporate corruption and the survival of profit making organizations with emphasis on Imo State Command of Nigeria Police.
In all your getting, get wisdom. Ordinarily, every research project has to be delimited to accommodate control reliability and validity. To achieve this, the research adopted certain measures. One must note that the population to be studied cannot be extended to cover the entire country because such as attempt will (Kate researchers difficulties and problems that may hamper the reliability of the research. Meanwhile, in other to streamline the data for a thorough analysis and study, the investigation is limited to Nigerian Police, Imo State Command.

1.8 LIMITATIONS OF THE STUDY
It is therefore, necessary to highlight some of the problems that I encountered in the course of carrying out this research work. And they include:
1. Inadequate Fund: For it is said that finance is the engine that propels, steams and powers the actualization of any project. Yet, this made the research work a problematic one. Hence, as a student without a good financial base struggled in collection of data for the project, high cost of transportation in running to and fro and from one library to another. It was so difficult combining my assignment works especially in this period of school examinations with this research work.
2. Insufficient Material: This is another problem I encountered in the course of this research work. Surfing the internet, newspapers and magazines update, journals, tertiary institutions, textbooks and lectures, consultations before I could come up with the material on the topic to mention but a few.
3. Non-Chalant Attitude and Unwillingness to Provide Information: Also, this remains another problem associated with this research work. Meanwhile respondents were unable to give out some vital information needed either for the fear of being implicated or not to disclose the secret of the establishment. Perhaps, the citizenry do not enjoy the liberty to freedom of speech.
4. Some of the Workers refused to be interviewed and appointment given to the researcher for interview were not kept while certain documents required for by the researcher were not made available.
Finally, the researcher succeeded in distributing the questionnaires through the number of respondents which is below his expectation.

1.8 ASSUMPTIONS OF THE STUDY
Using the research topic, the following assumptions were inherent in the study:
1. The organization trains their staff.
2. The staff used for the study does not have pre-knowledge of the issue.
3. The staffers do not have good orientation and some do not know the objectives of which they are called to serve.
4. All the respondents will read and answer the questionnaire objectively.

1.9 DEFINITION OF TERMS
Corporate: This, according to Oxford Advanced Dictionary means an act of, or relating to a corporation. It simply means acting as a corporate body or in a corporate way.
Corruption: This is the act of corrupting or of impairing integrity, virtue or moral principle the state of being corrupted or debased, loss of purity or integrity, depravity, wickedness, impurity and bribery.
Survival: Survival refers to the fact or act of surviving, a state of continued existence or life.
Profit: It means total income or cash flow minus expenditure. The money or other benefit a non-governmental organization or individual receives in exchange for product and services sold at an advertized price.
Organizations: These are group of people or other legal entities with an explicit purpose and written rules. It could said to be a group of people who form a business, club etc together in other to achieve a particular objective (with a sole reason of making profit).

1.10 BRIEF HISTORY OF THE NIGERIA POLICE, IMO STATE COMMAND
The word police are derived from the Greek word “Polis” meaning that part of non-ecclesiastical administration having to do with the safety, health and order of the state. The Greek politeiria meant the art of governing and regulating the welfare security needs and order of the city state in the interest of the public. Although police is derived from the Greek, it was the Romans who perfected the system. The Roman politia meant the same thing as the Greek politeiria. It was a symbol of power residing in central authority. Nigeria’s police began with a thirty members consular guard formed in Lagos colony in 1861. In 1879, a 1,200 member armed paramilitary Hausa constabulary was formed. In 1896 the Lagos Police was established. A similar force the Niger coast constabulary was formed in Calabar in 1894 under the newly proclaimed Niger coast protectorate. In the North, the Royal Niger Company steps up the Royal Niger constabulary in 1888 with headquarters at Lokoja. When the protectorates of northern and southern Nigeria were proclaimed in the early 1900s, part of the Royal Niger Company constabulary became the northern Nigeria police and part of the Niger Coast Constabulary became the northern Nigeria police. Northern and southern Nigeria was amalgamated in 1914, but their police forces were not merged until 1930, forming the NPF, headquartered in Lagos. During the colonial period, most police were associated with local governments (native authorities). In the 1960s, under the first republic, these forces were first regionalized and then nationalized.
In 1952, the police came under the command of an inspector general assisted by a commissioner in charge of each region and an assistant commissioner in the southern Cameroun. When Southern Cameroun voted to join the Cameroun republic in 1961, members of the forces serving there were given choice of returning to Nigeria or enlisting in the Western Cameroun Police Force (AWESU 1995). Under the Nigeria constitution (order in council), the force was established as a federal force. The constitution also set up the police council, and the police service commission which were dealing with general problems relating to the force and with promotions and appointments in the senior ranks respectively.
On October 1, 1963, Nigeria became a republic. The force continues to be administered on a federal basis as enacted in the republican constitution of that date. In 1967, Nigeria was divided into 12 states in 1976. Nigeria was further divided into 19 states, 21 states in 1987, 30 states in 1991 and 36 states in 1996. With further creation states in Nigeria, the Nigeria police force had been followed suite having a state police command in each of the states, commanded by commissioner of police and commissioner of police at Abuja, FCT.
However, Nigerian police, Imo State Command is as old as creation of Nigeria beginning from the 12 states. Therefore, the Department Criminal Investigation (DCI) is the highest criminal investigation arm of the Nigeria Police Force (NPF). The department is headed by a Deputy Inspector General (DIG) currently DIG: Solomon Arase. Its primary functions include investigation and prosecution of serious and complex criminal cases within and outside the country. The department also coordinates crime investigations throughout the NPF. The DG is divided into sections with most of the headed by commissioners of police (Qs).
The sections are:
a. Administration
b. Anti-fraud section
c. The Central Criminal Registry (CCR)
d. Special Anti-Robbery Squad (SARS)
e. X-squad
f. General investigation
g. Special Fraud Unit (SFU)
h. Legal section
i. Forensic science laboratory
j. Interpol liaison
k. Homicide
l. Anti-human trafficking unit
m. Force Intelligent Bureau (FIB)
n. DCI Kaduna Annex

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Corporate Corruption And Survival Of Profit Making Organizations:

Corporate corruption can have significant implications for the survival of profit-making organizations. Corruption refers to dishonest or fraudulent activities conducted by individuals within or associated with a corporation. This can include bribery, embezzlement, fraud, insider trading, and other unethical practices that prioritize personal gain over the interests of the organization and its stakeholders. The survival of profit-making organizations is influenced by several factors related to corporate corruption:

  1. Reputation and Trust: Corruption damages a company’s reputation and erodes the trust of its customers, partners, investors, and employees. A tarnished reputation can lead to reduced customer loyalty, decreased sales, and difficulty in attracting new business relationships. Over time, a loss of trust can result in declining profits and even bankruptcy.
  2. Legal Consequences: Engaging in corrupt practices often violates laws and regulations. Companies found guilty of corruption can face substantial fines, legal penalties, and even criminal charges for their executives. These legal consequences can drain a company’s financial resources, hinder its operations, and negatively impact its ability to generate profits.
  3. Market Value and Stock Performance: Corporate corruption can lead to a drop in a company’s stock price and market value. Shareholders may lose confidence in the company’s ability to maintain sustainable profits, causing them to sell their shares. A decline in stock performance can make it harder for the company to raise capital, affecting its growth and survival.
  4. Loss of Talent: Talented and ethical employees are less likely to stay with a company known for corruption. High turnover rates can disrupt operations, impact productivity, and hinder the development of innovative products and services, ultimately affecting profitability.
  5. Operational Inefficiencies: Corrupt practices can divert resources away from productive activities and towards unethical activities. This can result in operational inefficiencies, increased costs, and decreased overall performance, reducing the organization’s ability to generate profits.
  6. Competitive Disadvantage: Companies engaging in corruption might resort to unfair and anti-competitive practices to gain advantages. However, these advantages are often short-lived and can lead to regulatory scrutiny, legal actions, and damaged relationships with competitors, further impacting profitability.
  7. Stakeholder Withdrawal: Investors, customers, suppliers, and partners may choose to disassociate from a corrupt company to protect their own interests. This can lead to reduced access to capital, limited business opportunities, and strained relationships that hinder profit generation.
  8. Regulatory Scrutiny: Governments and regulatory bodies often investigate and penalize companies involved in corruption. Increased scrutiny can lead to ongoing legal battles, regulatory fines, and compliance costs that impact profitability.

In contrast, organizations that prioritize ethical behavior and transparency are more likely to maintain a positive reputation, foster trust with stakeholders, attract and retain talent, and build lasting relationships. They are also better positioned to adapt to changing market conditions, innovate, and seize growth opportunities.

Ultimately, the survival of profit-making organizations depends on their ability to create value, generate sustainable profits, and maintain the trust of their stakeholders. Corporate corruption undermines these fundamental principles and can significantly jeopardize an organization’s long-term viability.