Corporate loyalty and discipline is an important part of doing business. This means business organizations and their personalities should behave in a responsible manner while doing their job. However due to different factors, there is a strong belief in the business world that ‘bad and good go together`. Business manipulation and conspiracy motivated by the motive for lucrative profit and undue benefit are not uncommon in today’s globalized world where the business community is on the verge of revolution. The purpose my article therefore is to show how businesses may behave badly to conspire at the expense of the lawful business as well as the social and economic capital; and the possible factors thereof.

Considering the existing reality in the Ethiopian finance sector, one may propose that an excessive short-term focus by some boards of directors, corporate leaders and shareholders combined with insufficient regard for long-term strategy can cause an imbalance in the companies’ long term and sustainable growth. Particularly, shareholders represented by a board of directors typically affect company operations and decisions differently than other stakeholders concerned with the business.

Ethiopia has been making various reforms that may finally lead it towards genuine democratization. Part of the reform measures has been the court reform effort within the macro legal reform program. Ethiopia’s court system has been hassled by the drastic upheavals in the political system over more than half a century. Although the country successfully implanted modern codes of law in the 1960s, establishing a court system that can accommodate the modern laws have been and is still the challenge. Accordingly, the country’s modern civil law, penal law, and commercial law are ahead of the level where the court system needs to be to understand them, let alone apply them.

The financial sector in Ethiopia, and particularly banks, do hardly any work towards developing future CEOs. You might argue that this is anecdotal evidence, but I have surveyed various bank executives to find out if there is an ongoing, constant, and systematic process of development and discernment. Rather, I have found out that it is a time – limited event which it is not driven by the strategy and core values of the banks, and it does involve the intentional engagement of all of board members. To be specific, most banks, for instance, grapple with CEO succession when there is a real need to find a CEO.

Customers are what keep a business alive. Coming up with a business idea, doing research, making plans, and executing the business- this should all be done with customers in mine. Once the business has identified a problem to solve for the customers, has understood its niche market, and has decided how to reach out to customers, it can be up and running. But many fledgling businesses run into a problem here. Days and weeks, and even months go by, but only a few customers have come in, nowhere close to the targeted numbers.


Mengistu Worku, the late renowned Ethiopian Footballer, ones said, ‘‘we used to play for the passion of the sport not for the money that we get from it’’ and he reminisced about how the late Yidnekachew Tessema, refered by some as the father of Ethiopian football, used to give him ten or twenty five cents for transport after training. Such stories were common in the amateurish, early stage of the ‘beautiful game’ in Ethiopia. In those days, formal organization and structure were absent, but recently, following the trend in other sectors of the economy, some changes are occurring in the Ethiopian football, though it still has a long way to go before becoming fully professional.

Ethiopian Business Review | EBR is a first-class and high-quality monthly business magazine offering enlightenment to readers and a platform for partners.

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