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SCHOOL: AGRUCULTURE AND TECHNICAL STUDIES

DEPARTMENT: AGRICULTURE (VIDEO CIP PAGE 78

AUGUST CLASS 2023

(PAGE 24 IBP CLASS)

MAIN CAMPUS SEPT 2023 PAGE 49

UNIT CODE: LCUU 2101

UNIT TITLE: DEVELOPMENT STUDIES AND ETHICS

Bernard--Kivyatu

Contacts

copyright@2019-All rights reserved for LUKENYA UNIVERSITY

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TABLE OF CONTENT Page

Table of contents i
Meaning of symbols ii
General overview of the unit iii
Course outline iv

Lecture 1 6
1.0 Introduction 6
1.2 Conceptual Basis for studying environment and human activities 7
1.3 Permafrost and its effect on the environment 8
1.4 Natural resources 10
1.4.1 Classification of natural resources 10

1.5 Forest resources 11

1.6 Causes and effects of deforestation 11
1.7 Biotic pyramid 12
1.8 Ecosystem disturbance and stability 13

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..
MEANING OF SYMBOLS

Objectives

Activity

Key note

Summary

Self Assessment Question (SAQs)

Further Reading

3
General overview of the unit
Credit Hours 3

Purpose

The course introduces the key issues relating to development, ethical behavior and group
dynamics, and leadership.

Expected Learning Outcomes

At the end of the unit, the learners will be able to

i. To explain the concept of modernization and origins of underdevelopment

ii. To describe the concept of development, underdevelopment and development
iii. Expound on the indicators of economic development
iv. Discuss the theories of leadership
v. Explain and Identify ethical and unethical professional conduct
vi. Identify the principles of leadership and organization

Recommended books.
1. Rebecca Schaaf (2013). Development Organizations. Routledge Publishers.
2. Jennifer Elliott (2012). An introduction to sustainable development. Routledge publish-
ers.
3. Frankena, W. K. (2001). Ethics – 2nd edition – New Delhi: Prentice Hall
4. Frederick Bird and Stewart Herman (2004). International Business and the Challenges of
poverty in the Developing World. London: Palgrave.

Further Reading:
1. Hinman, Lawrence M (2003). A Pluralistic Approach to Moral theory – 3rd edition – Aus-
tralia: Thomson.
2. Todaro, Michael P & Smith Stephen, Stephen C. (2003). Economic Development – 8th
edition; Pearson Education.

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..

COURSE OUTLINE
WK Topic Lectures
1&2  Introduction  The theory of development
 History and  Modernization theory of developmet
Concept of  Development & underdeveloppment as a post
development & WW11 project
underdevelopment  Modernization theory (Rowtow’s theory)
 Depedency theiry/ Economic growth Versus
Economic development
3 Socio-economic indicators  Gross National Product (GNP):
of growth and  GNP per capita
development
 Welfare
  Social Indicators
Challenges associated with GNP, welfare
 The Kuznets’s Hypothesis (on growth & economic
development)
 GINI Coefficient
 Concept of sustainable development
4  Group Dynamics  Causes of poor group Dynamics
 Group formation and evolution
 Reasons why people join groups
 Group cohesiveness
 Types of groups, group behavior, Role conflict
 Group norms , Social loafing
5  Leadership  Styles of Leadership
 Theories of leadership (Trait, Behavioral, Con-

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 tingency etc
 Managerial Grid
 Likert’s school of leadership
CAT 1

6  Division of labour  Theories of Division of labour

 Advantages and disadvantages of division of la-
bour
7  Fundamentals of  Projects constraints
Project  Project cycle
management  Project initiation concept
 Power and influence
8  Business operation  Political, legal, cultural, Technical, and eco-
within different nomic environments (PESTLE)
envirobnments  Importance of economic environment
 Role of profffesionals in rural development
 Objectives of rural development
 Role of Government in economic development
 The Invisble HAND Dotrine
9  Trend of  Top technology trends with big impacts (Mobil-
information ity, Cound computing, Big Data)
technology and its
impacts
10  Nature of Morality  Factots that influence moral behavoiur
 Sources of morality
 Moral Decision Making
 Ethical relativism, Cultural relativism, Descript-
ive ethical relativism,
 Tyyes of moral values
 Organization/ Business Ethical Issues

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 CAT 2
11  Relationship be-  Laws and moral standards
tween law and  Importance of business ethics
moral standards  The Pyramid of Social Responsibility
 Current Ethical Issues in Business
 Advantages and Disadvantages of Business
Ethics
12  Place of Morality in  Kohlberg’s Stages of Morality
society
13 Humman centered  Population and Industrialization
ethics /place of humanity  Value of environment
in a natural world  Environmental problems

Approved and signed by the Dean.

............................................................Date .............................. Sign........................

School Stamp …………………………………………………………………

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 …

Lecture 1: The concept of development and underdevelopment

At the end of this lecture, learners will be able to : -

 Explain the Modernization theory, Dependency theory.

 Discuss the origins of the term developed and Undeveloped.
 Differentiate between Economic growth and Economic development

1.0 Introduction

The term Ethics originates from a Greek word THOS, which means action, customs, habits,
manners, way of being, or character. Early in history, there existed a polytheistic practice which
governed personal actions of people and the rulers.

It is in record that the evolution of ethics continued during the middle ages ( ) , the Patristic and
the Scholasticism ages up to this date. Generally, during all these historical times, Ethics have
governed human actions.

Note that during the the modern age, ethics freed human thought and brakes on historical taboos.
After entering the industrial age, we see the birth of the private property/sector and the
emergence of commerce and the birth of fragmented [Link] comes the constant struggle for
equality and non-oppression (Look at the great men such as Martin Luther King -1929-1968,
(USA), Mahatma Gandhi of India, Dalai Lama (Tibet), Kwame Nkrumah (Ghana), Nelson
Mandela (South Africa) whose effort as revolutionists and thirst for freedom bore fruits of
independence and enhanced human dignity.

At the top of this, we see Human rights being enacted as the culmination of the values that
exists leading to greater participation in women in all business and many political activities.

Moving on, we see that the very search for better days has led people to confront the destruction
of the habitat. From the foregoing, one way of illustrating the aims of Ethics as shown below:

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 Adapted from Prof. Zahik Ivan and Prof. Felipe Degracia P.

Sir Jeremy Bentham puts it that Ethics is the art of directing men’s actions to the production of
the greatest possible quantity of happiness. We can also define Ethics as a discipline that
examines good and bad practices within the context of a moral duty. Many scholars argue that
morality has been seen as dealing with principles concerning right and wrong or good and bad
behavior. Unfortunately, we also see, unethical and immoral attitudes taking place perhaps due
to the desire to achieve results by adopting any means. As observed in many administrations
world over, many people believe that the violent and disruptive nature of war makes a military
ethic impossible. According to Pacifists, the horrible and ungovernable nature of war makes it
morally wrong.

Generally, we can have three branches of ethics as : -

 Descriptive ethics – This involves the art of describing, characterizing and studying
Morality
 Normative ethics – This deals with the art of supplying and justifying situations as they
Are,
 Applied ethics - This deals with moral outcomes are achieved in given specific
situations

1.1 The Concept of development and underdevelopment

The theory of development

Development theory is a conglomeration or a collective vision of theories about how desir-
able change in society is best achieved.

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 Modernization theory of development
Modernization theory is a theory used to explain the process of modernization that a nation
goes through as it transitions from a traditional society to a modern one.

 The term underdevelopment can be used to describe a state of an economy where levels
of living of masses are extremely low due to very low levels of per capita income re-
sulting from low levels of productivity and high growth rates of population.
 The term underdevelopment has been critiqued by theorists in economics, development
studies and post-colonial scholars. Some scholars have used the term underdevelopment
primarily to distinguish states along benchmarks concerning human development—such
as macro-economic growth, health, education, and standards of living.

 Simply said "underdeveloped" state is the antithesis of a "developed ", modern, or indus-
trialized state. Underdeveloped states include those that have less stable economies, less
democratic political regimes, high poverty, malnutrition, poorer public health and week
education systems.
Looking more closely at history, we can easily point out that the concepts
of development, developed and underdevelopment are thought to have
originated from:

(i). The colonial era = where colonial masters extracted free labor and natural resources

(ii) As a post war project of invention of the then third world.

It is well noted that the Mexican activist Gustavo Esteva asserted that underdevelopment began
during the reign of American president, Harry Truman upon his inaugural speech in 1949.
Remember that by then and after the WW11, poverty was on a mass scale and had just been
discovered. After his speech 2 billion inhabitants of the earth became underdeveloped. Escorba,
Arturo (1995) wrote that more than half of the world's nations were categorized by what they
lacked. Indeed, henceforth, The Euro- development discourse and its aura of expertise often
conflated development with economic growth.

If we look at the green revolution, we see a paradigm of a concerted effort of intervention under
the pretense of global development. Developed nations tried to modernize agriculture and sort
to export their industrial agricultural models of production. These nations gave their
surplus crop yields to poor nations as food aid to mitigate hunger. Looking at this more
critically, we see crops which were not prevalent within in most areas such as wheat were being
transferred world over. In the process, India became depended on food aid. To continue receiving
food aid, the US administration made it a condition for food recipients of the food aid to adopt
the whole industrial model of agriculture.

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Looking at the whole scenario more closely, the revolution was titled “Green” not just because of
its connections to agriculture but also was used as a tool to fight the “Red”, or communist
revolution. In fact, as noted by Clapp Jennifer (2012), the west believed that hunger had the
power to drive people to peasant revolutions, so food aid was used explicitly to fight the
spread communism.

The industrial model of agriculture had in it the complexity of necessary inputs in order to
increase yields. Food aid dependent nations were for a while able to produce sufficient food but
the soils soon became degraded by the increased use of chemicals such as fertilizers and
pesticides. Unfortunately, this system exacerbated (intensified) vulnerable populations poverty
in the nations considered underdeveloped.

The Modernization theory

It is clear that this arose as one of the mitigations or solutions to underdevelopment and
highlights the positive role played by western countries in modernizing and facilitating
development in the non-west countries.

The theory of modernization can be viewed on three parts.

i. A hierarchical identification of nations or societies, which explains how those designated

as "modernized" or relatively modernized differ from others
ii. Specification of how societies become modernized, comparing factors that are more or
less conducive to transformation
iii. Generalizations about how the parts of a modernized society fit together, involving
stages of modernization and ideal types of successfully modernized countries

 History has it that Sir Walt Whitman Rostow is regarded to have significantly contributed
to the modernization theory through his economic model which outlined five stages of
growth for nations to follow in his essay, “The Stages of Economic Growth: A Non-
Communist Manifesto”. According to W. Rostow, Walt (1960), once implemented prop-
erly, these stages present a linear trajectory of development in which the traditional so-
ciety, exhibiting feudal and “backward” characteristics, can transform into a modern soci-
ety with advanced industries and urban societies.
 Indeed, Rostow's model simplifies complex inequality between nations by claiming dif-
ferent societies are simply at different stages of growth.
 Furthermore, Rostow’s model makes the assumption that the inequality between states
will eventually disappear once each progresses on the timeline of modernity.

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The Rostow’s Five Stages of modernization include: -

(i) The Traditional Society ..

(ii) The Preconditions for take-off: This can take a long period of time to establish the pre-
conditions for takeoff. These include fundamental changes in the social, political and
economic fields; these include:-
(a) Society’s attitude towards science, risk taking behavoiur and profit (money) earning
(b) Adaptability of the labor force
(c.) Political sovereignty
(d) Development of a centralized tax system and financial institution
(e) construction of economic and social infrastructure.

“We can strongly say that most East African Countries and especially Kenya have now
fullfield this requirement and ready for the next step – (the take off)”

(iii) The Take-off: defined as “the interval during which the rate of investment in-
creases in such a way that real output per capita rises and this initial increase carries with
it radical changes in the techniques of production and the disposition of income flows
which perpetuate the new scale of investment and perpetuate thereby the rising trend in
per capita [Link] crucial stage which covers a relatively brief period of two to three
decades in which the economy transforms itself in such a way that economic growth sub-
sequently takes place more or less automatically.
(iv)The Drive to Maturity: This occurs when the economy becomes mature and is capable
of generating self-sustained growth. The rates of saving and investment are of such a
magnitude that economic development becomes automatic.
(v) The Age of High Mass Consumption: In this stage of development per capita income of
country rises to such a high level that consumption basket of the people increases beyond
food, clothing and shelters to articles of comforts and luxuries on a mass scale. Leissure
travelling and tourism now creeps in as required.

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 Adapted from other sources
Modenization theory same as Rowtow’s theory of development

In fact, it is already in record that countries which adopted the Rowtow’s model in the 1960’s
are now super countries. Look at South Korea (SAMSUG). Singapore, Hong Kong, India, Brazil,
Taiwan, etc.

The Dependency theory.

This suggests that the wealthy nations of the world need a subjugated peripheral group of poorer
states in order to remain wealthy. It is true to say that the poor nations provide natural resources,
cheap labor, and consumer markets for the wealthy nations, without which, according to
dependency theorists, they could not have the standard of living they enjoy.

First world nations actively, but not necessarily consciously, perpetuate a state of dependency
through various policies and initiatives. This state of dependency is multifaceted, involving
economics; media control politics, banking, finance, education, sport and many forms of human
resource development.

Why a sovereign state should be subjected to alien policies in order just to be given economic
aid. In the past attempts have been seen by the dependent nations to resist the influences of
dependency only to result in economic sanctions and/or military invasion and control.

 Note that although this is rare, however, dependency is still far more enforced by the
wealthy nations through setting the rules of international trade and commerce.

As advocated by Paul Prbisch, dependency theory first emerged in the 1950s, after his
research which showed that the wealth of poor nations tended to decrease when the wealth of
rich nations increased.

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Dr. Immanuel Wallerstein, a famous American sociologist refined the Marxist theory, and called
it the world system. World system theory furthet adds another layer to what dependency
theorists describe as the structure of the world: the semi-periphery.

 Countries in this layer include India, South Africa, and Brazil-etc.). World systems
theory also states that the dynamic of surplus extraction that occurs between nations
also occurs within them, between their elite and poor classes.

According to Brazilian social scientist, Theotonio Dos Santos, dependence means a situation in
which certain countries economies’ are conditioned by the development & expansion of another
to which the former is subject.

Back home and with reference to Africa’s underdevelopment, Walter Rodney opposes that the
decisiveness of the short period of colonialism and its negative consequences for Africa spring
mainly from the fact that Africa lost power.

Indeed, as viewed by Irogbe, Kema (2005), when one society finds itself forced to relinquish
power entirely to another society, that in itself is a form of underdevelopment.

As it was: Manipulated & forced Dependency Theory- the case of

Congo

In what could be termed as a forced dependency theory in Africa, the USA and Belgium could be
used as some of the best examples. In this regard, the first Prime minister of Congo, His
Excellency Patrice Lumumba stood firm against the western world imperialism against his
country. As a revolutionary nationalistic leader, soon after Congo gained independence, Patrice
Lumumba wanted true independence and sovereignty of the country’s vast natural resources
which the western nations especially the US and Belgium were “literally stealing. Lumumba
spoke forcibly and fearlessly on the violence and humiliation of colonialism.

 History has it that the USA was one of the first powers to recognize the ownership claims
of Belgium’s King Leopold the 2nd to the territories of the Cong basin in 1885.
 Besides, still in 1885, King Leopold of Belgium created the Congo Free State of Bel-
gium. During the 21 years of his rule over the Congo, between 5 to 10 million were bru -
tally killed.
 There was reign of terror in which there was rape, forced labour, mutilations and all kinds
of atrocities to the African people.
 The Congo and Russia are known to possess vast amounts of cobalt. Besides, Congo is
rich in other minerals such as gold, Uranium, Diamonds among others. The cold war
between the USA and the then Union of Soviet Socialists Republics (USSR). Alloys of
Cobalt are used in jet turbines and gas turbine generators, where high-temperature
strength is important.

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  When combined with Chromium and Tungsten, it is used in making high speed cutting
tools.
 It is also used in making super alloys, in coatings, electronic equipment’s and batteries
etc.
 During the cold war, especially the period between 1950’s and 1960’s, the rivalry and
politics made that the USA could not get Cobalt from the USSR. Hence the only source
was only the Congo, but then the Prime Minister was not ready for his country to let his
country lose its minerals without proper compensation.
In this regard, the CIA of the US and the Belgium Security Operation planned for the
assassination of Patrice Lumumba. Sadly though, this happened on 17 th, January 1961 at 9.40
pm. The prime minister and two of his closest allies Mr. Joseph Okitto and Mr. Maurice
M’polo were aligned in a tree and short one at a time.

Mr. Patrice Lumumba’s life may have been cut short, but his Lumumbism ideology of
Nationalism, Pan Africanism and Social Progressivism is stays alive to this date.

This partly explain how the western countries influenced the African continent to remain poor,
while the western nations became wealthy by getting cheap raw materials, cheap labour and
consequently markets for their products. This is the case of what is referred to as the Dependency
Theory.

With the removal of Lumumba, the regime of President Mobutu Seseseko paid lip service in
which there was rampant corruption and natural resource mismanagement.

i. Citing examples, discuss why some countries are richer than oth-
ers
ii. Colonization of the African Continent was a necessary evil. Dis-
cuss

Economics of Development: Concepts and Approaches

Economics of development refers to the problems of economic development of underdeveloped

countries. Starting from a western ideological frameworks, we see a changed view after the
WW 11 where more attention was given towards analyzing the problems within
underdeveloped countries and formulating theories of development and economic growth.

History has it that after the Second World War, the poverty and backwardness of some of the
world countries became extremely conspicuous. Many reasons, including colonial exploitation,

15
devastation by war, war -induced inflation and the like, could possibly be said to be responsible
for such a sad state of affairs in many countries.

 It is precisely at this time that the subject of development economics came into being
to study the problems of backwardness and underdevelopment of these nations.

Essentially, Development economics (DE) was basically designed to theorize on economic

backwardness of the less developed countries (LDCs) and apply the theoretical knowledge to
the analysis of particular problems of underdevelopment, low income and poverty, and to find
ways and means to solve these problems.

The purpose of DE has been mainly to study the phenomenology of under development, and to
prescribe appropriate policies to eradicate it.

Economic growth Versus Economic development

Many economists often tend to use the two terms economic development and economic growth
Interchangeably, as they appear to be synonymous with each other.
 The economic development can be defined as the development of the economic
wealth of the country. Economic development is aimed at the overall well-being of
the citizens of a country, as they are the ultimate beneficiaries of the development of
the economy of their country.

Economic development is a sustainable boost in the standards of living of the people of a

country. It implies an increase in the per capita income of every citizen. It also leads to the
creation of more opportunities in the sectors of education, healthcare, employment and the
conservation of the environment.

 Economic growth on the other hand, is a narrower concept than economic develop-
ment and is defined as the increase in the value of goods and services produced by
every sector of the economy. It is usually expressed in terms of the gross domestic
product or GDP of the country.

In this lecture, we have learnt the following: -

i. The concept of developed and undeveloped

ii. Modernization and Dependency theories
iii. Rostow’s theory of modernization
iv. Economic growth and Economic development

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..

We hace come to the end of this mlecture, attempt to answer the following quation.

i. Discuss why many African countries are not at the same eco-
nomic development status with countries like South Korea,
Singapore, Taiwan and India despite having attained indepen-
dence almost at the same time.
Part answer: Corruption, political stability, geography, technol-
ogy, education, civil wars, religion ….

i. Rostow, Walt (1960), The Stages of Economic Growth: A Non-Communist

Manifesto”.

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forward them to the Dean of the School (email) at your earliest convenience.

Circle the most appropriate response

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2.0Socio-economic indicators of growth

and development
By the end of this lecture, learners will be able to explain the following: -

i. Indicators of economic development and the associated challenges

ii. The concept of economic growth and income distribution
iii. The GINI Coefficient
iv. The concept of Sustainable development

We have already seen the concept of economic growth and economic development from the
previous lecture.

Economic scholars have developed various indicators for measurement and dertermination of of
economic development: these include: -
i. Gross National Product (GNP):
ii. GNP per capita
iii. Welfare
iv. Social Indicators
Other extrapolations from part (iii) and (iv) above:
v. Life expectancy and health/disease indicators
vi. Literacy rates
vii. Employment rate vs. Unemployment rate
viii. Demographic indicators (annual pop growth, urban pop, % of pop under 15, in-
fant mortality)

(a). Gross National Product

 GNP-is the total value of all final goods and services-produced within a nation in a
particular year, plus income earned by its citizens (including income of those located
abroad), minus income of non-residents located in that country. Basically, GNP mea-
sures the value of-goods and services that the country's citizens produced regardless of

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 their location. GNP is one measure of the economic condition of a country and assumes
that a higher GNP leads to a higher quality of living, all other things being equal.

 Closely related to GNP is Gross Domestic Product (GDP):-which is the total market
value of all final goods and-services produced in a country in a given year, equal to total
consumer, investment and-government spending, plus the-value of exports, minus
the value of import

Economic development indicators
 Gross Domestic Product (GDP) is the total value of goods and services
produced by a country in a year.
 Gross National Product (GNP) measures the total economic output of a
country, including earnings from foreign investments.
 GNP per capita is a country's GNP divided by its population

Challenges faced by GNP as a measure of national development

i. It fails to take into consideration changes in growth of population, ideally, a rise in real
national income is accompanied by a faster growth in population, and there will be no
economic growth but retardation.
ii. The GNP figure does not reveal the costs to society of environmental pollution. It consid-
ers natural resources to be free.
iii. It tells nothing about the distribution of income in the economy.

iv. GNP is always measured in money terms, but there are a number of goods and services
which are difficult to measure in terms of money e.g. taking care of the children by the
mother.
v. Double counting which arises from the failure to distinguish properly between final and
intermediate products.

 GNP as an index of economic development has not been successful in reducing

poverty, unemployment, inequality nor has it helped raise standards of living in
developing countries. Therefore, on its own GNP cannot be regarded as a satis-
factory measure of economic development.

(b). GNP per capita

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This relates to increase in the per capita real income of the economy over the long period. This
indicator of economic growth emphasizes that for economic development the rate of increase in
real per capita income should be higher than the growth rate of population.

(c). Welfare
Economic development is often measured from a welfare point of view. From this perspective,
economic development is regarded as a process whereby there is an increase in the
consumption of goods and services by individuals. From a welfare perspective, economic
development is defined as a sustained improvement in material well-being, which is reflected
in an increasing flow of goods and services.

Limitations
Questions can arise with regard to the weights to be attached to the consumption of individuals
because generally, consumption of goods and services depend on the taste and preferences of
individuals.
i. The composition of the total output that is giving rise to an increase in per capita con-
sumption needs a closer look. This is so since the increased total output may be com-
posed of capital goods or r it may be the cost of a reduced output of consumer goods.
ii. It is important to consider not only what is produced but how it is produced. You see, in
some cases, the expansion of real national output might have resulted from long hours of
labor and deterioration of working conditions associated with the labor force.
iii. It is also possible that increase in welfare might be accompanied by increased inequality
in distribution of income. The Bible says in the last days, the rich will get richer and the
poor will get poorer. This is already happening all over the globe especially in the capi-
talistic world. The BIBLE is so TRUE indeed.

(d). Social Indicators

This arose due to dissatification with the GNP/GDP per capita. Some indicators are ‘inputs’ e.g.
nutrition standards or number of hospital beds or doctors per head of population while others are
outputs e.g. infant mortality rates, sickness rates etc. Generally, Social indicators are normally
referred to as basic needs of development. The direct provision of basic needs such as health,
education, food, water, sanitation and housing affects poverty in a shorter period and with fewer
monetary resources than GNP/GNP per capita strategy which aims at increasing productivity and
incomes of the poor automatically over the long run.

The limitations
i. There no unanimity (agreement) among economist as to the number and type of items
to be included in such an index.
ii. There is a question on assigning weights to the various items which may depend
upon the social, economic and political set-up of the country.
iii. Majority of indicators are ‘inputs’ and not ‘outputs’ such as education, health etc
iv. They involve ‘value judgments’ hence they are not popular

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 Emerging issues: Replacing GDP with Gross Ecosystem Product
(GEP) reveals value of nature

University of Exeter

 Replacing Gross Domestic Product (GDP) with a new "ecosystem" measure reveals the
enormous value of the natural world,

 GDP—widely used by decision-makers around the world—summarizes the value of all

goods and services bought and sold in a country during a specific period as a single fig-
ure.

 But it takes no account of how nature contributes to economic activity and human wellbe-
ing.

 Scholars have put it that this is a great “critical omission" and suggests a new
way to measure that missing value of nature: "Gross Ecosystem Product"
(GEP).

According to Professor Ian Bateman (University of Exeter Business School), in order to achieve
sustainable development, there is need to move beyond conventional economic measures like
GDP.

 You see, the global economy, as conventionally measured by GDP, more than doubled
between 1990 and 2015.

 On the other hand, however, the stocks of 'ecosystem assets' - such as forests, grass-
lands, wetlands, fertile soils and biodiversity—have come under increasing pressure.

Green Ecosystem Product (GEP) can provide decision maker’s decision with clear and com-
pelling evidence of the value of the natural world expressed using money.

Scholars have put it that in many parts of the world including China, GEP was actually greater
than GDP in the year 2000. Indeed, Prof. Bateman argues that GEP can be calculated in a clear
and transparent manner, similar to that used for GDP.

Remember that Ecosystem services can be classified into material services

 The contribution of nature to the provision of food, water supply, etc)

 Regulating services (the contribution of nature to carbon sequestration, flood mitigation,

soil retention, sandstorm prevention, etc)

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  Non-material services. Cultural and Supportive i.e. (the contribution of nature to eco-
tourism, nature experience for mental health, etc).

Economic growth and income distribution: The Kuznets hypothesis

 There exists a big debate as to whether economic growth increases or decreases income
distribution. Fortunately, Prof. Simon Smith Kuznets (1955) became the first man to sug-
gest the relationship between the income inequality and income per capita. This hypothe-
sis states that “the income inequality initially rises with economic development but after
reaching its maximum it subsequently falls in advanced stages of economic develop-
ment”.
 Indeed, according to Moran (2005), this hypothesis has become one of the most influen-
tial statements ever made on inequality and development
 Many theoretical models have been developed since Kuznets work and it appears there is
a great controversy. Some empirical evidence results have controversial and in-complete
results (Anand and Kanbur, 1993a), Deininger and Squire, 1998, Tam, 2008).
 Although we have some controversies (Anand and Kanbur, 1993a), many scholars have
supported the Kuznets work (Ahluwalia, 1976, Jha, 1996, Milanovic, 2000, Bulir, 2001,
Linet al. 2006).

The Hypothetical Kuznets curve: “Notice the in the early stages of economic
development, relative inequality increases, then stabilizes for a while and
then declines in later stages”.

It is normal that during the early stages of economic development, new investment opportunities
increase for those who already have the capital to invest. These new investment opportunities
mean that those who already hold the wealth have the opportunity to increase that wealth.
Conversely, with the influx of cheap rural labor to the cities keeps wages down for the working
class thus widening the income gap and escalating economic [Link] inverted U-curve
tends to flatten in nations countries with high social contributions.

With respect to kuznet’s curve, the truth is that as a country industrilizes, the center of the
economy shifts from rural areas to the cities as rural laborers and farmers start a rural – urban
migration in serch of better jobs. Eventually, this results in a large rural-urban income gap and
rural populations decrease as urban populations increase.

22
What is your view on how rural –Urban migration in Kenya and how it influences economic
development, does this have any link with the Kuznets hypothesis?

The GINI Coefficient

Gini-coefficient: This is simbly a measure of inequality.

 In economics, the Gini coefficient (Gini ratio or Gini index ) is a measure of sta-
tistical dispersion intended to represent the income or wealth distribution of a na-
tion's residents, and is the most commonly used measure of inequality.

Mathematically, the Gini Coefficient can be represented as

Gini Coefficient = A
__________
(A + B)

Disadvantages of the Gini coefficient.

 It is not additive across groups. This means the total Gini of a society is not equal to the
sum of the Ginis for its sub-groups.

i. Explain five key factors used in determination of economic de-

velopment in developing countries
ii. Discuss to what extend the Kuznet’s curve applies in Kenya

23
.

The concept of Sustainable Development (SD)

The Bruntland Commission defines Sustainable Development as “Development that meets the
needs of the present without compromising the needs of future generations to meet their own
needs in the future.

 It has been argued that the reactions of both economists and ecologist are well considered
in this definition. In fact, these two groups of people (economists & ecologists) assume
that individuals derive welfare from, and have preference for, consumption, environmen-
tal quality and social heal.
 In the developing world sustainable development is directly concerned with increasing
the material standard of living of poor at the grass roots level (food, education, real in-
come, sanitation, water supply and is indirectly concerned with economic growth at the
aggregate or national level.
 In 1987, E Barbier (1987) summarized SD as development that aims to reduce the abso -
lute poverty of the world’s poor through provision of lasting and secure livelihoods that
minimize resource base depletion, environmental degradation, cultural disruption
and social stability.
 Another famous scholar, Gillis et al., (1992) reports that sustainable development path
maximizes the present value of the intertemporal social function. From this, we can have
a set of economic, environmental and social indicators aggregated together into a single
indicator that becomes a universal indicator of sustainability such as the Human Devel-
opment Index (HDI), which includes life expectancy, literacy, and income per capita.
 LoenBraat (1991) views that the concept of sustainable development combines two basic
nations (economic development and ecological sustainability).
 Indeed, B. J. Brown (1988) goes further and assert’s SD to be the indefinite survival of
human species with a quality of life beyond mere biological activity through the mainte-
nance of basic life support systems like air, water, land, good infrastructure and institu-
tions, which distribute and protect the components of the these systems.
 Furthermore, Robert Harveman (1989) reports that SD is the maintenance of growth of
the aggregate level of economic wellbeing, while John Mccormick (1991) notes that SD
aims at improving the quality of human life while living within the carrying capacity
of the supporting systems.
 According to Hans Opschoor and Reijnders (1991), a country that has maintained a
steady state falls within the definitions of sustainability.

As reported by Richard Norgaard (1992), SD is concerned with the rights of future

generations to the services of natural and produces assets and whether the formal and

24
informal institutions which affect the transfer of assets to future generations are adequate to
assure the quality of life in the long run.

Criteria used for the selection of the developing countries in

The identification of the least developed countries (LDCs) is currently based on three criteria:

 per capita gross national income (GNI)

 Human assets
 Economic vulnerability to external shocks.

The latter two are measured by two indices of structural impediments, namely the human assets
index and the economic vulnerability index

As indicated by the World Bank (2016), we can have low income and Lower middle income
nations. The former are described as economies with a GNI per capita in 2015 of US $1,025 or
less while the latter are described as economies with a GNI per capita in 2015 between US
$1,026 and $4,035.

 Imagine of the total LDC’ globally, 34 states are in Africa while nine are in Asia, four in
Oceania (Kiribati, Solomon Islands, Tuvalu and Vanuatu. Former LDC nations are
Botswana, Cape Verde, Samoa, Sikkim and Maldives.
 Although this changes annually, the top ten most developed countries in ascending order
include: Denmark, Singapore, Canada, New Zealand, Germany, US, Netherlands,
Switzerland, Australia and Norway.
 In comparison, the top ten least developed countries in order of ascending poverty are
Mali, Mozambique, Sierra Leone, Guinea, Bukina Faso, Burundi, Chad, Eritrea, Central
Africa Republic and Niger.

In respect to human development index, Kenya is ranked within the medium human
development at position 146 among the world’s 188 states.

i. Attempt to discuss the concept of sustainable development

ii. Discuss the global and regional challenges that face the achieve-
ment of sustainable development

25
We have come to the end of this lecture, use the knowledge gained to asnwer the question/s that
follow: -

i. Discuss the activities and procedures that t African countries

should undertake to achieve an accelarated and sustainable
development.

EVALUATION
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forward them to the Dean of the School (email) at your earliest convenience.

Circle the most appropriate response

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Sequence of content Very good Good Poor
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Time required covering content Adequate No comment Inadequate

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26
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[Link] dynamics

By the end of this lecture, learners should be able to

i. Explain how groups are formed

ii. Expound on the causes of poor group dynamics
iii. Explain the various types of groups and group norms
iv. Explain the concept of social loafing and how it can be applied in ensure
work performance and efficiency

 History has it that Sir Kurt Lewin (1940’s) coined the term group dynamics after noticing
that people often take on distinct roles and behaviors when they work in a group.
 "Group dynamics" describes the effects of these roles and behaviors on other group mem-
bers, and on the group as a whole.
 Generally, group dynamics is that division of social psychology that investigates the for-
mation and change in the structure and the functions of the psychological grouping of
people into self-directing wholes.

Various scholars have put forward varying but yet similar definitions on Group dynamics.

 Group dynamics deals with the attitudes and behavioral patterns of a group.
 Group dynamics concern how groups are formed, what is their structure and which pro-
cesses are followed in their functioning.
 It is true to say that Group dynamics is a system of behaviors and psychological pro-
cesses occurring within a social group (intragroup dynamics), or between social groups
(intergroup dynamics).
 According to Backstrom, [Link] al.,2006), the study of group dynamics can be useful in
understanding decision-making behavior, tracking the spread of diseases (HIV/AID)
in society, creating effective therapy techniques, and following the emergence and
popularity of new ideas and technologies.
 Poor group dynamics can adversely affect performance, leading to a negative outcome on
the common goal or project.

27
  In other circles of life, group dynamics are at the core of understanding racism, sexism,
and other forms of social prejudice and discrimination.

In a work place, group dynamics is important in order to:

I. Provide strong leadership within a group: The manager needs to define specific
roles and responsibilities for members of the group
II. Recognize how personalities affect team dynamics: Recognizing each person’s
style of work, motivation, and level of aptitude can help a manager understand
how a person fits within the Group as a whole. Besides, it can also provide an op-
portunity for managers to note any gaps in Experience or behavior that need to be
filled with additional team members in order for the group to successfully accom-
plish its goal
(iii). Understand the life cycle of a group (Group formation –Forming, Storming, Norming,
Performing and Adjourning)
(iv). Allow good communication: This can determine the success or failure of the group in
reaching its goal

Nothing on earth is perfect. In this regard, many formed groups break up or fail to achieve their
intended goals. In this regard: -

Causes Poor Group Dynamics

 Weak leadership: when a team lacks a strong leader, a more dominant member of the
group can often take charge. This can lead to a lack of direction, infighting, or a focus on
the wrong priorities.
 Excessive deference to authority: this can happen when people want to be seen to agree
with a leader, and therefore hold back from expressing their own opinions.
 Blocking: this happens when team members behave in a way that disrupts the flow of in-
formation in the group. People can adopt blocking roles such as:
i. The aggressor: this person often disagrees with others, or is inappropriately outspoken.
ii. The negator: this group member is often critical of others' ideas.
iii. The withdrawer: this person doesn't participate in the discussion.
iv. The recognition seeker: this group member is boastful, or dominates the session.
v. The joker: this person introduces humor at inappropriate times.

NEXT CLASS
Group formation.
Group formation starts with a psychological bond between individuals. According to Hogg, M.
A.; Williams, K. D. (2000), group formation starts with a psychological bond between
individuals. The social cohesion approach suggests that group formation comes out of bonds of
interpersonal attraction.

28
  On the contrary, the social identity approach suggests that a group starts when a collec-
tion of individuals perceive that they share some social category (‘smokers’, ‘nurses,’
‘students,’ ‘hockey players’), and that interpersonal attraction only secondarily enhances
the connection between individuals (Hogg, M. A.; Williams, K. D. (2000).
 Besides, Majchrzak, A (2007) has pointed out that Emergent groups arise from a rela-
tively spontaneous process of group formation. For example, in response to a natural dis-
aster, an emergent response group may form.
 These groups are characterized as having no preexisting structure (e.g. group member-
ship, allocated roles) or prior experience working together.

Interestingly, it is normal for individuals to tend to upgrade likeable in-group members and
deviate from unlikeable group members, making them a separate out-group. This is referred to
as black sheep (Marques, J. [Link] al. 1988).

 This can arise due to beliefs within the in-group based on how individuals in the group
see their other members. This phenomenon has been later accounted for by subjective
group dynamics theory. In-fact, according to this theory, people derogate socially unde-
sirable in-group members relative to out-group members, because they give a bad image
of the in-group and jeopardize people's social identity.
 Pinto, I. R et al (2016) clearly demonstrated that this occurs more strongly with regard to
in-group full members than other members. This simple, indeed, whereas new members
of a group must prove themselves to the full members to become accepted, full members
have undergone socialization and are already accepted within the group.
 At some point, a member may not personally agree with something the group does, but
to avoid the black sheep effect, he will publicly agree with the group and keep the pri-
vate beliefs to themselves.

Further, Pinto, I. R (2010), observed that in a situation where one is the person privately self-
aware, he is more likely to comply with the group even if they possibly have their own beliefs
about the situation.

Reasons why people join groups

 Security
 Power
 Goal achievement
 Status.
 Self–esteem
 Affiliation
 Identify and recognition
Other reasons: (Companionship, source of information, outlet of frustration, generation of
ideas, job satisfaction, perpetuation of cultural values.

Group cohesiveness

29
  A characteristic feature of groups which is particularly important for the behaviour of
their members is cohesiveness Extent to which the members are attracted to each other.
In other words, it is the degree to which members are attracted to and motivated to re -
main as part of the group.

Sources of cohesiveness can arise from = (Factors affecting Group Cohesiveness)

 Presence of a common threat.= Outside pressure
 Size of the group
 Nature of group / and status.
 Shared goals
 Attitudes and values
 Solving problems
 Interaction
 Communication
 Leadership of the group
 Management behavior
 Groups success
 Location of the group

Group’s decision making process

 Diagnose the problem
 Develop alternatives
 Evaluate alternatives and select the best one
 Implement and monitoring.

Process/Stages of Group Development/Evolution:

Group Development is a dynamic process and involves a process of five stages through which
groups pass through. The process includes the five stages (Figure 1): forming, storming, forming,
performing, and adjourning.

 Forming: At this level, members seek either a work assignment (in a formal group) or
other benefit, like status, affiliation, power, etc. (in an informal group). The group mem-
bers either engage in busy type of activity or show apathy despite much uncertainty.
 Storming: Here we see formation of dyads and triads. Members seek out familiar or
similar individuals and begin a deeper sharing of self.
 Norming: In this stage, members are marked by a more serious concern about task per-
formance. The dyads/triads begin to open up and seek out other members in the group.
 Performing: In this stage, a group is fully functional and members see themselves as a
group and get involved in the task.

 Closing or Adjourning: In the case of temporary groups, like project team, task force,
or any

30
 o other such group, which have a limited task at hand, also have a fifth stage, This
is
o known as adjourning.

 The group decides to disband. Some members may feel happy over the performance
while others may be unhappy over the stoppage of meeting with group members.

Although many different forms of group formation exist, below are simplified versions of the
same: -

Adapted from other sources

Types of groups

 Groups may be classified by way of formality – formal and informal (Figure 2 below).
While formal groups are established by an organization to achieve its goals, informal
groups merge spontaneously. Formal groups may take the form of command groups, task
groups, and functional groups.

Formal groups
 Command groups: specified by the organizational chart and often consist of a
supervisor and the subordinates that report to that supervisor
 Task groups:= Task force = consist of people who work together to achieve a
common task. Members are appointed by the organization or are brought together
to accomplish a narrow range of goals within a specified time period.
 Functional groups: is created by the organization to accomplish specific goals
within an unspecified time frame and remain in existence after achievement of
current goals and objectives (Marketing dept., Accounting dept. )
Informal groups
 These groups can have a strong influence in organizations that can either be positive or
negative. For example, employees who form an informal group can either discuss how to
improve a production process or how to create shortcuts that jeopardize quality. Cate-
gories of informal groups include:

31
  Interest groups: These continue over time and may last longer than general in-
formal groups. Members of interest groups may not be part of the same organiza-
tional department but are bound together by some other common interest.

 Friendship groups: This is formed formed by members who enjoy similar social
activities, political beliefs, religious values, or other common bonds

 Reference groups: A reference group is a type of group that people use to evalu-
ate themselves. The key objectives of reference groups are to seek social valida-
tion and social comparison.

Factors Affecting Group Behavior:

Generally, the success or failure of a group depends upon so many factors. Group member re-
sources, structure (group size, group roles, group norms, and group cohesiveness), group pro-
cesses (the communication, group decision making processes, power dynamics, conflicting inter-
actions, etc.) and group tasks (complexity and interdependence).

1. Group Member Resources:

 The members’ knowledge, abilities, skills; and personality characteristics (sociability,
self- reliance, and independence) are the resources the group members bring in with
them. The success depends upon these resources as useful to the task.

2. Group Structure:
Group Size:
 Group size can vary from 2 people to a very large number of people. Small groups of two
to ten are thought to be more effective because each member has ample opportunity to
take part and engage actively in the group. Large groups may waste time by deciding on
processes and trying to decide who should participate next.

Generally, as the size of the group increases, satisfaction increases up to a certain point. Increas-
ing the size of a group beyond 10-12 members’ results in decreased satisfaction. It is increasingly
difficult for members of large groups to identify with one another and experience cohesion

32
Group norms.

 Every group has a set of norms: a code of conduct about what is acceptable behavior
which may apply to everyone in the group or to certain members only. Group norms vary
based on the group and issues important to the group. Without group norms, individuals
would have no understanding of how to act in social situations
 Norms are the informal rules that groups adopt to regulate members' behavior.
Norms refer to what should be done and represent value judgments about appropri-
ate behavior in social situations. Hahn, M. (2010), noticed that norms have powerful in-
fluence on group behavior. Furthermore, Forsyth, D.R. (2009), observed that group
norms provide direction and motivation, and organize the social interactions of members.
 Group norms develop gradually throughout interactions between group members.
As reported by Forsyth, D.R. (2009), there are various types of norms, these include in-
cluding: prescriptive, proscriptive, descriptive, and injunctive.
i. Prescriptive Norms: the socially appropriate way to respond in a social situa-
tion, or what group members are supposed to do (e.g. saying thank you after
someone does a favor for you) = (A consensual standard that identifies
preferable, positively sanctioned behaviors)
ii. Proscriptive Norms: actions that group members should not do; prohibitive
(e.g. not belching in public) = (A consensual standard that identifies prohib-
ited, negatively sanctioned behaviors )
iii. Descriptive Norms: describe what people usually do (e.g. clapping after a
speech) = (A consensual standard that describes how typically act, feel, and
think in a given direction)
iv. Injunctive Norms: describe behaviors that people ought to do; more evalua-
tive in nature than a descriptive norm = (This is an evaluative standard that
describes how people should act, feel and think in a given situation rather
than how people do act, feel and think in that direction)

33
 .

..
Activity xx

i. Explain the critical stages involved in group formation

ii. State the causes of poor group dynamics

Further reading:
Role ambiguity:
 Unclear expectations about behaviors to be performed by an individual occupying a par-
ticular position within a group. This is caused by:
i. Lack of clarity in the role itself
ii. A lack of consensus
iii. Or individual role taker’s uncertainty with regard to the types of behav-
iors expected by others.
Role conflicts

We can have three distinct role conflicts as shown below:

34
Characteristics of a Group:
Regardless of the size or the purpose, every group has similar characteristics:
i. Norms: Standard of behavior that every member is expected to follow
ii. Conformity; Behavior or actions that follow the norms.
iii. Cohesiveness: Forming a united whole.
Team cohesion outcomes:
 Motivated to remain members
 Willing to share information
 Strong interpersonal bonds
 Resolve conflict effectively
 Better interpersonal relationships.
The Cs of building Effective teams
 Conditions: Practices – including policies and incentives – need to support teams
 Capability: Having the necessary skills, and knowledge
 Cooperation = Collaboration: Understanding how to work together and use re-
sources effectively to achieve team goals.
 Coordination: Effective teams foster mutual support, adaptability, and flexibility.
 Communication:
 Cognition:This involves a shared understanding of tasks and member roles.
 Coaching: Leaders promote teamwork and care about team members.
 Creativity:
 Commitment: commitment to the team’s mission and to each other.
 Conflict: Effective teams provide a climate where it is safe to deal with conflict.
 Clarity
 Continuous improvement


Social loafing

35
This was mobsered and explained by a French great thinker and Engineer called Ringlemann in
1913. It was noted as the group size increases, the less the force or effort was made by each
individual in the group while pulling a rope attached to a dynamometer. This then named
the Ringlemann effect but was later re-named the social loafing effect because of the wide
range of salutations in which the phenomenon occurs. Latane et al later in 1979 confirmed this
through an experiment involving clapping of hands and cheering. The social loafing states that
“as group size increases the social force or impact on each individual member decreases” andc
can be represented as shown in the chart below: -

Adapted from other sources

Ways to minimize social loafing

(a). Make individual performance more visible through:

 Formation of smaller groups
 Special tasks
 Measure individual performance.

(b). Increase employee motivation

 Increase job enrichment
 Select motivated employees.

Structure and behavior of small groups

36
  Group structure refers to the underlying pattern of roles, norms, and networks of relations
among members that define and organize the group.
 It is the integrated organizational pattern that reflects the totality of the separate parts that
inhere (exist essentially or permanently) in each group.
 It is important to note that differentiation can occur on the basis of formation
of group structure. For example, some people talk more than others, others
exert more influence and some are generally more active than others.

Each group member occupies a position in the group and the pattern of relationship among the
positions constitutes the groups structure. The evaluation of a position is called social status
and the set of expected behavior associated with a position within the group constitute the role.

i. Explain how the concept of social loafing can be applied in work places
to ensure efficiency and increase output

Further reading; Gain more knowledge .. ..

EVALUATION
We appreciate your evaluation of the course. Please give us comments in the following areas and
forward them to the Dean of the School (email) at your earliest convenience.

Circle the most appropriate response

Clarity of information Very clear Clear Not clear
Sequence of content Very good Good Poor
Standard of material Very good Good Poor
Questions in assessed assignment Very helpful Helpful Not helpful
Time required covering content Adequate No comment Inadequate

37
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5 Leadership

At the end of this lecture, learners should be able to: -

i. Define the term leadership and explain the various theories of leadership

5.0 Many definitions of leadership exists, for exmple,

 Leadership can be explained as the action of leading a group of people or an organization

.In fact, it is noted that only three (3) things happen naturally without leadership; these
are Friction, Confusion and Underperformance (Peter Drucker) and involves establish-
ment of a clear vision, sharing that vision with others so that they too follow willingly.
 Leadership is the ability to develop a vision that motivates others to move with a passion
towards a common goal. This means leadership is a process by which a person influences
others to accomplish an objective and directs the organization in a way that makes it
more cohesive (unified) and coherent (logical).
 An integrated definition is given by Martin M. Chemers (1997), where he describes
leadership is the process of social influence in which one person can enlist the aid and
support of others in the accomplishment of a common task.
 Alan Keith (1968), States that Leadership is ultimately about creating a way for peo-
ple to contribute to making something extraordinary happen.
 Prof Ann Marie E. McSwain (Lincoln University) states that Leadership is about
capacity: the capacity of leaders to listen and observe, to use their expertise as a start -
ing point to encourage dialogue between all levels of decision making, to establish a
process and transparency in decision-making, to articulate their own values and vi-
sions clearly but not impose them.
 Generally, leadership can be seen in many forms (Political, explorer, religious, executive)
and as reported by Marcus Buckingham, Great leaders rally people to a better future.

38
According to [Link] Burns (1978), transformational leadership is a process where
"leaders and their followers raise one another to higher levels of morality and motivation),

An effective leader is a person who does the following:

1. Creates an inspiring vision of the future.

2. Motivates and inspires people to engage with that vision.
3. Manages delivery of the vision.
4. Coaches and builds a team, so that it is more effective at achieving the vision.

Styles of leadership

 Authoritarian or Autocratic
 Participative or Democratic
 Delegative or Free Reign.
 Laissez-faire


The perfect leadership mixes the one that balances and mixes these three.

Theories of leadership (see below)

39
..

(a The Trait Theory

Advantages of Trait Theory

 It is naturally pleasing theory
 It serves as a yard stick against which the leadership traits of an individual can be as-
sessed.
 It gives a detailed knowledge and understanding of the leader element in the leadership
process.
Disadvantages or Limitations of the trait Theory
 There should be some subjective judgment in determining who is regarded as a good or
successful leader.
 There is also a disagreement over which traits are the most important for an effective
leader.
(b). Behavioral Theory
 These theories of leadership are based upon the belief that great leaders are made, but not
born
 They are rooted in behaviorism, and focuses on the actions of leaders not on mental qual-
ities or internal states.
 According to this theory, people can learn to become leaders through teaching and obser-
vation.
 The behavior approach says that anyone who adopts the appropriate behavior can be a
good leader. (Do you agree with this, discuss).
(c). The Contingency theory.

40
  In this theory, the success of the leader is a function of various contingencies in the form
of subordinate, task, and /or group variables. The leaders who are very effective at one
place and time may become unsuccessful either when transferred or transplanted to an-
other situation or when the factors around them change.
 In fact, this theory helps to explain how some leaders who seem for a while to go off the
boil and make very unsuccessful decisions.

Different versions /sets /or theories of contingency theory.

(i). Fiedlers Contingency Model: This assumes that group performance depends on (i).
Leadershipstyle and (ii). Situational favorableness (leader-member relations/ acceptability, task
structure /clear goals and position in power.

(ii). Harsey & Blanchard’s Situational theory: This theory states that instead of using just one
style, successful leaders should change their leadership styles based on the maturity of the people
they’re leading and the details of the task. Here, emphasis is laid on the specific tasks. Four
leadership styles are known here:

o Telling (S1) = Leaders tell their people exactly what to do and how to do it.
o Selling (S2) = Leaders still provide information and direction, but there’s more
communication with follower. Here, leaders sell their massage to get the team on
board.
o Participating (S3) = Leaders focus on the relationship and less on direction. The
leader works with the team and shares decision-making responsibilities.
o Delegating (S4) = Leaders pass most of the responsibility onto the follower or
group.

(iii.). Path Goal Theory: = in this theory, leader’s responsibility is to increase subordinates
motivation and organizational goal. A person may do these by adopting a certain leadership
style according to the situation.
 Directive leadership – Here, subordinates are told exactly what to do, such as planning,
making schedules, setting performance goals and behavioral standards.
 Supportive leadership – This shows concern for subordinate’s wellbeing and personal
needs.
 Participative leadership – Decision making based on group consultation and informa-
tion is shared with the group.
 Achievement-oriented leadership – Challenging goals are set and high performance is
encouraged while showing confidence in the group’s ability.

(iv). Vroom-Jago Contingency Model:

The Managerial grid

41
  This managerial grid was developed by Robert Blake and Jane Mouton in 1964. It sug-
gests five different leadership styles exist based on the leaders concern for people and
their concern for goal achievement. The managerial grid is based on two (2) behavioral
dimensions.

(a). Concern for people:This looks into the degree to which a leader considers the needs
of the team members and their interests, areas of personal development when
deciding how best
to accomplish a given task.

(b). Concern for Production: The focuses on the degree to which a leader emphasizes
on concrete objectives., organizational efficiency and high productivity when
deciding how to accomplish a given tasks/tasks.

Under these two categories, (see figure below), we see five sets of leadership styles

a) Country Club Leadership = High on people/Low on Productivity.

b) Produce or perish Leadership = High production/Low on People
c) Middle-of-the-Road Leadership = Medium production/Medium on People
d) Team Leadership = High production/High on People

42
Adapted from other sources

Likert’s school of leadership

According to Dr. Rensis Likert, the efficiency of an organization or its departments is influenced
by their system of management. Here, four management systems re known:

 Exploitive authoritative system: Where responsibility lies at the hands of the people in
the upper echelons of the hierarchy.
 Benevolent authoritative system: Responsibility lies at the managerial levels but not at
the lower levels of the managerial hierarchy.
 Consultative system: Responsibility lies at the managerial levels but not at the lower
levels of organizational hierarchy.
 Participative (group) system: Responsibility for achieving the organizational goals is
widespread throughout the organizational hierarchy.

43
 i. Attempt to collect data from your location and ward and find out if
local people are satisfied with nthe type of the leadership at the re-
spective grass root levels.

Organizing people and activities such as Harambee.

Generally, Harambee is a Kenyan tradition of community self-help events, e.g. fundraising, or

development activities. Harambee literally means "all pull together" in Swahili, and is also the
official motto of Kenya and appears on its coat of arms.

Soon after independence, the Government adopted and encouraged people to the Harambee
concept as a way of pulling the country together to raise funds for all sort of national, provincial,
district and even other local projects.

Wealthy individuals wishing to get into politics could donate large amounts of money to local
Harambee drives, thereby gaining legitimacy; however, such practices were never
institutionalized during Kenyatta's presidency.

We hace come to the end of this lecture,

i. From the above lecture, attempt to explain the type and style of
leadersip in your home ward.
ii. According to the managerial Grid, evaluate yourself and ex-
plain the style that best meets your school of thought

EVALUATION

We appreciate your evaluation of the course. Please give us comments in the following areas and
forward them to the Dean of the School (email) at your earliest convenience.

44
Circle the most appropriate response
Clarity of information Very clear Clear Not clear
Sequence of content Very good Good Poor
Standard of material Very good Good Poor
Questions in assessed assignment Very helpful Helpful Not helpful
Time required covering content Adequate No comment Inadequate

Suggestions you would like to make concerning this course:

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[Link] of labor

After the end of this lecture, learners will be able to: -

i. Expound on theories of division of labour and give the merits and de-
merits
ii. Explain on the contraints of project management
iii. Describe the project cycle

45
  This concept was popularized by Adam Smith in “An Inquiry into the Nature and
Causes of the Wealth of Nations” (1776) after noticing that efficiency of produc-
tion increased after workers were given different tasks.
 Going back in history, we can move in to Plato’s Republic, where we notice that
the origin of the state lies in the natural inequality of humanity, which is embod-
ied in the division of labor. Furthermore, the 14th Century scholar IbnKhal-
dun emphasized the importance of division of labor in the production
process. Indeed, in his Maqadddimah, he states that “the power of the indi-
vidual human being is not sufficient for him with as much as he requires
lives”.
 Division of labor is a process of dividing the responsibilities within the organiza-
tion or system in order to achieve the daily, weekly and monthly targets as de-
signed by the organization. In economic concepts, Division of labor means divid-
ing the production system process into different stages which enable workers to
focus on specific tasks. Most production operations involve different systems op
operation and according to Merriam-Webster (2016), a system is defined as a reg-
ularly interacting or interdependent group of items forming a unified whole.
 Each member performing a given task is supposed to have complete competency
in his sector/line of operation. In fact, small animals (insects such as even bees,
termites ) and primates such as Monkeys and other animals are known have ap-
propriate division of labor.

In the process of implementation, Key Performance Indicators ((KPI) or Key Success In-
dicators (KSI) are used to evaluate business data against business goals.

Some Key Performance Indicators in different institutions include:

 In business, Key Performance Indicators percentage are tagged on how much in-
come is generated by returning customers.
 The number of clients visited per year.
 Graduation results of the students are key performance indicators in a learning in-
stitution.

Theories of Division of Labor.

(i). Structural-Functionalism Theory

 Emile Durkheim (1893) observed that the division of labor appears in all societies and
positively correlates with societal advancement because it increases as a society pro-
gresses.

(ii). Conflict Theory.

 Here, we see Mar’s theoretical contribution is his sharp distinction between the economic
and the social division of labor. He described division of labor negatively and said about

46
 alienation, when the same work becomes repetitive then the process of production creates
less-skilled workers. He further argued that class differentiation and status variation origi-
nated by division of labor.
Types of Division of Labor
i. Simple Division of Labor
ii. Complex Division of Labor
iii. Occupational Division of Labor
iv. Regional and International Division of Labor.

Advantages of Division of Labor.

o Practice makes perfect
o Increases in efficiency of labor = Workers chose tasks where they have the great-
est ability.
o Increase in skill = same task for a long time.
o Increase in production and output
o Increase in Employment Opportunities
o Best Selection of the workers
o Reduction in the Cost of Production
o Economy of time. No waste of time switching for tasks = (Efficient use, work
time expended in a given period)
Disadvantages of Division of Labor.
o Work Becomes Dull and Monotonous = same work for years.
o Increases Dependence = e. g. If a machine breaks down. A delayed task can create
bottlenecks in the process.
o Greater Risk of Unemployment = Workers find it difficult to get jobs which do
not require the skills acquired.
o Decline in the Quality of Craftsmanship
o Loss of Responsibility
o Exploitation of Labor
o Discrimination
o Industrial Disputes.
o Loss of pride = Since a worker has just finished a part of a process in production
of a product.

In 2001, Marx, Karl and Frederick Engels noted that human progress has led to various
developments in the division of labor: The two observed that: - first the "separation of industrial
and commercial from agricultural labor, and hence to the separation of town and country and to
the conflict of their interests. Marx, Karl and Frederick Engels (2001), further argue that the
"various stages of development in the division of labor are just so many different forms of
ownership. They noted those stages as:

47
(i) the tribal form, which is really "a further extension of the natural division of Labour existing
in the family" and
(ii) primitive communism: "the ancient communal and State ownership which proceeds
especially from the union of several tribes into a city by agreement or by conquest.

 So, Division of labor is a kind of specialization. As our resources are scarce, and in order
to satisfy the largest possible number of wants, we have to organize them by division of
labor. Division of labor is therefore an important feature of modern industrial organiza-
tion.. Besides division of labor occupies so important place in modern production process
and adds so greatly to total output and wealth of a country.


Box question: Some useful questions and answers.

What is tolerance This is the ability of accepting others in terms of social, ethnic,
in a business or cultural and religious differences, provided they do not violate the
in an fundamental human rights. Many scholars to understand it as
organizational set acceptance of diversity of opinions. We can explain tolerance as
up? the acceptable and non-acceptable deviations from what is
expected.
What is referred This is defined as designing a product of a company into an image
to as that occupies a distinct place in the markets mind
Positioning?

i. Try to visit any industry or project in your home county and clas-
sify the division of labor\ involved in the production processes
ii. Discuss the importance of division of labor in Kenta.

We hace come to the end of this lecture,

i. Examine the history and importance of division of labor

with respect to developed and developing world.

48
EVALUATION

We appreciate your evaluation of the course. Please give us comments in the following areas and
forward them to the Dean of the School (email) at your earliest convenience.

Circle the most appropriate response

Clarity of information Very clear Clear Not clear
Sequence of content Very good Good Poor
Standard of material Very good Good Poor
Questions in assessed assignment Very helpful Helpful Not helpful
Time required covering content Adequate No comment Inadequate

Suggestions you would like to make concerning this course:

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NEXT CLASS

7.0 Fundamentals of project management.

By the end of this lecture, learners will be able to : -

i. Expound on project constraints

ii. Describe the project cycle

49
 iii. Explain the various environments which influence business operations
iv. Explain the role of professionals, government in rural development
v. Expound on the concept of invissible hand doctrine

7.1 Project constraints

A development project has to manage four (4) basic constrains; Scope, Schedule, Budget and
Quality. Indeed, the project manager plays a big role in the success of a project and must have
the right and necessary skills, ability and knowledge most as to take considerations of the
constraints and plan the processes to keep them in balance.

Adapted from other sources

(i). The scope is what the project is trying to achieve and entails all the work involved in
delivering the project outcomes and the processes used to produce them. Hence in a project,
scope implies:
 The boundaries of a project
 The strategy for implementation a project
 The activities of a project
 The duration of a project.

50
(ii). The schedule: This defines the approximated time required to complete the project and
includes specific dates to deliver an activity or complete the project.
(iii). The Budget: Every serious production system must have a budget -which includes the
funds approved for the project and includes all required expenses needed in order to deliver the
project within a scope and schedule.
 It is well noted that constraints like finance, political, or organizational issues may dictate
the way resources such as personnel, equipment, services and materials are acquired.
(iv). Quality: This is is concerned with delivering the project outcomes according to the stated or
implied needs and expectations of the project beneficiaries and the donor agency. Here,
conformance is key to the requirement stated.

Question: What are some examples of factors that influence from the project external
environment?
 Donor regulations and government requirements.
 Policies and procedures
 Norms and values of the organization
 Senior management requirements.

7.2 The project cycle.

Under this, six distinct phases are known as illlustrated beow. The phases relate tom each other
in a linear rationale rather than a cyclical manner to form a process.
 Initiation:
 Planning
 Implementation
 Monitoring
 Adapting
 Closure.

51
 (i)What project constraints can you identify in the local industies in
your home county?

Some scholars have tried to explain that the initiation stage is somewhat intricate: -

(i). Initiation phase:

During the initiation phase, an idea or concept is authorized and funded as a project. Planning
and estimations are done to clarify objectives and scope. Specifically, the major steps involved in
the in initiation stage include Project concept, Concept Approval, Project Proposal, Project
Approval, Project Negotiations and Project Contract as shown below.

52
 Adaptd from other sources

(ii). Project Planning: This includes the development of detailed plants required to manage the
Implementation of the project. i. e. The project chatter, team organization, project kick-
off, project management plans, Project Plan Approval and Communication plans.
(iii). Implementation: this stage includes all necessary actions to ensure effective operations and
timely completion of tasks and outputs as outlined. Mini tasks involved are Development
of project team, Assigning of work, Contract management, Quality assurance and
communications.

(iv). Monitoring phase: This is about measuring the progress of the project against the laid
Objectives while looking at deviations from the plan, and recommending corrective steps
for corrections. It includes activities such as Evaluation of project reports, Quality
control, Issues /risks monitoring, Team evaluation, Variance Analysis and
Determining needs for change.

(v). Adapting stage/phase.: This refers to the process by which the project manager learns and
adapts the methods, plans, and approaches and determines what works best for the
project. Steps in this phase include: Review of Performance Reports, Review Change
Requests, Develop Proposals for Changes, Approval for Proposed Changes, Update
Project Plans, and CAPTURE Lessons Learned.

53
(vi). Closing Phase: This takes place when the project has achieved the planned objectives and
all deliverables have been completed. The phase includes: Project Evaluation, Project
Final Reports, Closing Contracts, Administrative Close, Team Reassignments and
Distribute Lessons Learned.

7.3 Project manager Roles

Integrator = ensures all activities, strategies and approaches are in an integrated effort.
Communicator = Communicate with al stakeholders.
Leader: Motivating and inspiring the team to deliver.
..
6.5 Power and influence
 The level of power provides a level of power and influence on the project and its mem -
bers. Indeed, five (5) different types of power are known here

(i). Coercive power: Uses some form of Punishment or threat to have people do things.
(ii). Reward Power: Involves the use of incentives such as money, status, and promotions,
official Recognition or special work assignments.
(iii). Expert Power: Use of personal expertise influence the team to follow directions.
(iv). Legitimate Power:Thisis based formal authority, and uses the power vested on the project
Manager by the organization to make decisions and assign work to the team members.
(v). Referent Power:This is based on the personal charisma of the project manager; it is based
on the leadership qualities of the project manager and his ability to build a good level of
Trust with the team.

Note
 Risk management in projects: This includes the process concerned with identifying, an-
alyzing and responding to project risks. Risks in projects is defines as something that may
happen and if it does, it will have an adverse impact on the project.
 There are four (4) steps in risk management.
a) Risk planning

54
 b) Risk Monitoring and Response
c) Risk Evaluation and
d) Risk Plan Improvement.

7.4 Business operation within the political, legal, social, cultural, technological and
Economic environment

The economic environment consists of external factors in a business market and the broader
economy that can influence a business and greatly determines the success or failure of this
[Link] can divide the economic environment into two as:
 Microeconomic environment which affects business decision making - such as individual
actions of firms and consumers
 Macroeconomic environment which affects an entire economy and all of its participants.

Generally, many economic factors act as external constraints on your business. For example -

 Macroeconomic influences are broad economic factors that either directly or indirectly
affect the entire economy of a country and comprises of demographic, government, eco-
nomic, socio-cultural, legal, political, technological, and global environment.
 Microeconomic factors influence how a business will make decisions., these factors are
far less broad in scope and do not necessarily affect the entire economy as a whole, ex-
amples include:
 Market size
 Demand
 Supply
 Competitors
 Suppliers
 Distribution chain, such as retail stores
 Marketing intermediaries: Marketing intermediaries aid the company in pro-
moting, selling and distribution of the goods and services to its final users.

Question: Why is Economic Environment Important in business?

55
The economic environment of a business will play a pivotal role in determining the success or
failure of a business. For example, if interest rates are too high, the cost of borrowing becomes
very expensive. If unemployment rate is high, there will be cheap labor. Then if the
unemployment is too high, then the country may go on recess (Recession) and eventually to less
discretionary consumer spending resulting in insufficient sales to keep the business in operation.
Again, high taxes will eat into your profits while currency exchange rates may either be fruitful
or harmful.

(a)Political environment

It could add a risk factor and lead to a major loss. The political environment of any
country influences the business activities. Shaikh (2010) observed that this political envi-
ronment is influenced by the political organization, philosophy, government ideology, na-
ture and extent of bureaucracy, the country’s political stability, its foreign policy, defense
and military policy, the country’s image and that of its leaders both locally and interna-
tionally.

 Look at country’s policy that restricts the growth of multinationals in the market, simi-
larly, look at government policy that allows licensing that is liberal, liberal exportation
and importation, inflow of foreign capital and technology.

56
  It could add a risk factor and lead to a major loss. The political environment of any
country influences the business activities. Shaikh (2010) observed that this political envi-
ronment is influenced by the political organization, philosophy, government ideology, na-
ture and extent of bureaucracy, the country’s political stability, its foreign policy, defense
and military policy, the country’s image and that of its leaders both locally and interna-
tionally.

 Look at country’s policy that restricts the growth of multinationals in the market, simi-
larly, look at government policy that allows licensing that is liberal, liberal exportation
and importation, inflow of foreign capital and technology.

 Note that even increase or decrease in tax could be an example of a political element
 Note that some countries lean more towards a socialist economy where many industries
and businesses are owned by the state. However, Operating businesses in this environ-
ment will be more difficult.
 Furthermore, only very few countries operate under a communistic economic system
where the state pretty much controls all aspects of the economy. Conducting business in
this environment ranges from difficult to impossible
 Authoritarian regimes are usually answerable to no one, including the law. It is less risky
to conduct business in democracies and constitutional monarchies.

(b) Economic environment

 Economic factors include all the determinants of an economy and its condition. Eco-
nomic factors that influence the business are the collective of the nature of the country’s
economic system, the inflation rate, interest rates, foreign exchange rates, Recession,
Taxes, Demand/supply its structures, and economic policies, how the capital market is
organized, and nature of factors of production, business cycles, and socio-economic infra-
structure.

(c )Social- Cultural environment

 The country’s social environment affects the functioning of the business since it deter-
mines the value system of the society.

57
  You see, since sociological factors establish the culture of work, labor mobility, work
groups etc, hence, business operation of an enterprise.
 According to Shaikh, (2010), these factors include cost structure, customs and conven-
tions, cultural heritage, peoples’ view towards wealth and income and scientific methods,
seniority respect, gender and connected demographics, the social lifestyles, domestic
structure, mobility of labor.
 Peoples demand has a direct influence on the products to be produced. Note that when
there is a social change in life, there could be changes in newtrends such as fashion that
affect business in any part of the economy.

(d) Technological environment

 Technology is one of the most important elements of the macro-environment.

 In real world sense, a firm that cannot cope with the technological changes may not sur-
vive in business. Technological factors affects business concerning technological invest-
ment, technological application and the effect of technology on markets. Indeed, any
technological advancement affects highly the business in a country.
 Distinguished scholars such as Mühlbacher, Dahringer&Leihs( 2006) reported that
the type and quality of goods and services to be produced and the type and quality
of plant and equipment to be used in a company, is determined by the kind of tech-
nology employed by that company.
 Thus, Technology changes every minute and therefore companies need to stay connected
along the way and integrate as and when needed

(e.) Legal environment

 Legislative changes occur from time to time and many of them affect the business envi-
ronment. The legal environment affects the business and its managers greatly.

 Legal factors involve how flexible and adaptable the law and legal rules that govern the
business are. It also includes the exact rulings and courts decision.

58
  Legal provisions may also contribute to more or less income depending on the environ-
ment of operation.(Other legal issues are consumer law, employment law, health and
safety laws, etc.)

(f). Natural environment

 These are the geographical and ecological factors and include Country’s natural resource
endowment, weather, climatic conditions, Topographical factors, Location aspects in
global context, port facilities, etc.
 You see, geographical and ecological conditions can influence the due to source of mate-
rials; climate /weather can affect textile industries. Also, depletion of natural resources
and pollution are factors worthy to consider. .

Note: The six environments can be illustrated as the “PESTLE “

Analysis = (P = Political, E = Economic, S = Socio-
Cultural, T = Technological, L = Legal factors).

Note : - BUSINESS ENVIRONMENT

 The success of every business depends on adapting itself to the environment within
which it operates and functions. The term ‘business environment’ connotes external
forces, factors and institutions that are beyond the control of the business and they af-
fect the functioning of a business enterprise. These include customers, competitors,
suppliers, government, and the social, political, legal and technological factors etc.
While some of these factors may have direct influence over the business firm, others
may operate indirectly. Thus, business environment may be defined as the total sur-
roundings, which have a direct or indirect bearing on the functioning of busi-
[Link] factors are uncontrollable in nature and affect the business decisions of a
firm.

7.5 IMPORTANCEOFBUSINESSENVIRONMENT

There exists a close and constant interaction between the business and its environment. This
interaction helps in strengthening the business firm and using its resources more effectively.
Specifically, this means that proper understanding of the social, political, legal and economic
environment helps the business in the following ways:

 Determining Opportunities and Threats:

59
  .Giving Direction for Growth:
 Continuous Learning: Environmental analysis makes the task of managers easier in deal-
ing with business challenges.
 Image Building: Environmental understanding helps the business organizations in im-
proving their image by showing their sensitivity to the environment within which they are
working. A good example is observed that when there is power shortage, many compa-
nies put up Captive Power Plants (CPP) in their factories to meet their own requirement
of power.
 Meeting Competition: It helps the firms to analyze the competitors’ strategies and formu-
late their own strategies accordingly.
 Identifying Firm’s Strength and Weakness: Business environment helps to identify the in-
dividual strengths and weaknesses in view of the technological and global.

6.8 Role of professional in rural/industrial environment

Professionals:These are people who are knowledgeable and experienced in their own field of
specialization.

NOTE : Development in Rural Areas can bring about

 Increased economy
 Improved infrastructure.
 Enhanced education standards
 Improved health
 Technology advances

Importance of rural develop

 Rural development is the process of improving the social, economic and cultural condi-
tions of a village or a small town. It is in record that Mahatma Gandhi (2 nd October 1869
– 30th January 1948) once said that India lives in villages, in relation to the 70% of popu-
lation in the villages.

60
Role of professionals in rural development

 They improve the quality and service consistency on new or grown projects.
 They provide instructions regarding to developments and maintenance and skills to meet
organizational goals.
 They provide in-service training programme for youths in rural areas also employees in
industries.
 They aid in decision making. i. e. they are consulted in their areas of specialization since
they have knowledge.
 They ensure justice and equality in the society. That is, in turn brings in peace and unity
in the society.
 They promote poverty eradication in rural areas.
 They are sources of employments through investments.
 They aid achievement of millennium development goals through maintaining develop-
ments.
 They support economic, social, and environmental links between urban, peri-urban, and
rural areas by strengthening national and regional development planning.
 They carry out research and extension services and thereby increase nation’s production.
 They eliminate old and new forms of illiteracy in rural communities and ensure provi-
sion of primary education and access to secondary and tertiary educational opportunities.
They also support vocational and entrepreneurship training .
 They take measures that promote access to and ownership of means of production includ-
ing land, capital entrepreneurship to all genders for better development.

They promote sustainable natural resource use and management including ecotourism
conservation through community based programmes.

We can illustrate the objectives of rural development as shown below: -

The objective of rural development is to:

61
Adapted from other sources

7.6 Role of Government and government agencies in rural development

 Generally, a governmentagency is often an appointed commission, permanent or semi-

permanent organization in the machinery of government that is responsible for the over-
sight and administration of specific functions, such as an intelligence agency.
 The history of government agencies dates back to 1546 where we see King Henry estab-
lishing the British Navy Board. Similarly, as reported by Macleavy, J. and O. Gay (2005),
we also see the formation of the British Commissioners of Bankruptcy in 1570. From
then onwards, various governments continued with the establishment of agencies.

Many examples of government agencies exist. For example, In Nigeria, the Nigerian Maritime
Administration and Safety Agency (NIMASA) is a parastatal of the Ministry of Transport, re-
sponsible for implementation of maritime policies in the sub-sector of the economy and gener-

62
ates revenue for Government by collection of a special levy imposed on all ocean going vessels
that enter the country.

NEXT CLASS

The history and role of government in the economy of a country

 As observed by SudarshanKadariya, early in history, there was less role of government in

economic activities. The ruler had control of the economy.
 Next, coming to the Middle Ages, the government started to control the economy and by
the 17th Century, the government had a major control.
 Then during the 18th Century, we see the introduction of the Invisible hand doctrine
whose aim was to reduce the role of government.
 Then later 18th Century, Adam Smith came up with an analysis of market trends of pro-
duction and consumption, where he concluded that markets, if left alone, have an in-
herent potential of becoming efficient. Indeed, it is as if there was an invisible hand
that guides the markets to a level that is good for society. Indeed, as it is today, two hun -
dred years later, this theory still holds firmly.

7.7 The Invisible hand doctrine (IHD) explaned

 This states that in a free and regulated market, where anybody can become a producer or
a consumer,, people’s demand of different goods and their production of the same goods
will be equal, and the allocation of their resources for production and consumption of dif-
ferent goods will be optimal for welfare of the society.
 What this means is that , the invisible hand of market forces of demand and supply will
achieve the most efficient level of production, consumption and distribution of goods in
the society. In fact, this has led to a suitable argument against the government’s control
of production or consumption in any form.

It is interesting that in the late in the 19th Century, the Laissez-faire policy was born and was
against the government intervention. Many scholars suggest that the term (IHD), was derived
from the ASNSWER given by Jean-Baptiste Colbert (Controller general of Finance under
King Louis XIV of France received when he asked industrialists what the government could do
to help business: The answers was “LEAVE US ALONE”
63
  Then during 20Century, there was rapid economic growth which however led to exploita-
tion of unskilled labor, monopolistic exploitation and increased gap between the rich and
the poor. As a result of this state of affairs, the role of the government again began to in -
crease all over the world.
 Interestingly, arising from above, in the today’s modern economy, the deserving sectors
are segregated to the public as well as the private sector so that it is assumed to stabilize
the economy.

7.8 The reasons for the increased government role

o For equitable distribution of resources
o To look after the public goods like defense services and supplies.
o To curve the externalities
o To stabilize the economy
o To achieve acceptable rate of growth
o To enforce the government laws – acceptable to all citizens.

Thus roles of government include

 Regulatory: Direct/indirect measures of the government to control and regulate private

sector.(Regulate production process, Agreements, ( see figure below)
 Promotional: The incentives of the private sector to flourish such as provision of
o Infrastructure facilities, transportation, communication, security, grant incentives,
Patent facilities etc.
 Observation:
 Invest:
 Create a suitable environment for entrepreneurship

64
 Adapted from other sources

Adapted from other sources

NB: Government roles

 Keeping peace (Enforce laws,, protect rights)

 Protecting the country (Defense, treaties)
 Provide necessary services (Roads, health, general infrastructure = bridges)
 Maintain other institutions (Protect our freedom/religion

7.9 Computerization/automation

 Indeed, Automation is basically the delegation of human control to technical equipment

for increasing productivity, increasing quality, reducing cost and increasing safety of
workers. Data available today indicates that Automation and computerization are rapidly
becoming hot-button issues, both journalistically and [Link], it is noted
that althoughAutomation and computerization are related, they actually show separate
phenomena. Automation means the mechanization--and usually the speeding up--of pro-
duction andservice provision. On the other hand, Sunil Upneja (2011) defined Automa-

65
 tion as a broader term that means carrying out any task with the help of machine which
eventually decreasesthe human effort.
 Computerization is an innovative form of automation. History has it that the golem of
Jewish legend, for example, is a powerful automaton. However, Americans’ historic re-
ceptivity to technological innovation and their need for machines to compensate for
scarcity of labor have made the United States a center for automation.
 According to Rifkin, Jeremy (1995), automatic control, is the use of various control sys-
tems for operating equipment such as machinery, processes in factories, boilers and heat
treating ovens, switching on telephone networks, steering and stabilization of ships, air-
craft and other applications and vehicles with minimal human intervention.
 Indeed, in many industrialized states, some processes have been completely automated.

We have come to the end of this lecture, attempt to answer the following
questions
i. Why do project constraint arise in production systems
ii. Expound on why the project initiation is very critical in any project pro-
duction system
iii. State the objectives of rural development
iv. Examine the history and the role of government in economic develop-
ment of a country.

EVALUATION

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forward them to the Dean of the School (email) at your earliest convenience.

66
Circle the most appropriate response
Clarity of information Very clear Clear Not clear
Sequence of content Very good Good Poor
Standard of material Very good Good Poor
Questions in assessed assignment Very helpful Helpful Not helpful
Time required covering content Adequate No comment Inadequate

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8.0 Trend of information technology and its impacts (Class/or-group discussion topic)

By the end of this lecture, learners will be able to : -

i. Explain how technology trends are impacting on development

 We are at a critical juncture in the evolution of human society where advances in infor-
mation technology offer unprecedented opportunities as well as new challenges in the in-
ternational exchange of scientific data. Actually, developments in Information Communi-
cation Technology have brought forth the merger of computing, information, communi-
cations, entertainment, mass media industries thus providing a means of exchanging in-
formation in the digital format used by computers.

8.1Three top technology trends with big impact include Mobility, Cloud computing and big
data.

(i). Mobility: Under Mobility, we see that the proliferation of mobile devices, apps and
operating systems, has got almost every company considering how to they can take
advantage of expanding mobile technology

(ii). Big Data: The volume of data available to enterprises today is overwhelmingly large and
growing dramatically every year. The frequency that data changes and the dissipate
sources of the data, like mobile devices and social media, is creating an overflow of
unstructured data. Behind this massive amount of data is essential insight about
Customers, operational costs and other key aspects of business

(ii). Cloud Computing: Cloud computing is helping businesses across industries and of all sizes
Compete at a higher level. With cloud computing, traditional, lofty on-premise software
and systems that require huge investments are no longer necessary.

The history of library technology can be used as an example of a real trend in information
sciences. In the 1980 – 1994, computerization was born borne; we see the use of automation of
backend functions. Then in 1995 – 2005, the internet came into being followed by the the Digital
scholarship in 2006. Further to this, Jerry D. Campbell by 2006 brings forth the Academic
Library as a Virtual Destination. Then, a disruptive innovation sets in:

 Move from print to electronic collections

 Preservation of data for centuries
 Through ICT, digital information can be made available to remote areas.

In the millitary field, the use of drones and computer guided arsenals is already with us.

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In the field of medicine, computer systems stand out as key in treatment and surgery. The list
continous … ….

i. Expound on how changes in technology have influenced learn-

ing in Kenya

i. Discuss how the proposed Laptop project may affect the eco-
nomic development of Kenya.

EVALUATION

We appreciate your evaluation of the course. Please give us comments in the following areas and
forward them to the Dean of the School (email) at your earliest convenience.

Circle the most appropriate response

Clarity of information Very clear Clear Not clear
Sequence of content Very good Good Poor
Standard of material Very good Good Poor
Questions in assessed assignment Very helpful Helpful Not helpful
Time required covering content Adequate No comment Inadequate

Suggestions you would like to make concerning this course:

69
5.1 Nature of morality

By the end of this lecture, learners will be able to : -

i. Explain the parameters that influence morality

ii. Expound on the sources of morality
iii. Explain the general steps in moral decision making
iv. The link between morality and law
v. Expound on cultural, descriptive, and normative relativisms
vi. Understand the importance of organizational / business ethics

The words "moral" and "ethics" are often used interchangeably. Morality helps us to judge
between the difference between the Right and Wrong and then do what is right. Imagine you
have encountered a moral situation. Here one can act either in a way that is right or take the
opposite act in a way that one knows is actually wrong.

It has been observed that moral behaviour can depend on various parameters such as:
 The Consequence: What will happen if I do it or do not do it?
 One’s Emotions: How one will actually feel about the decision made after the act
 The Situation: The background… what led to this ….
 Laws and Rules: Is it against the law? …
 Authority: If one is ordered to do what he does …
 Common practice: Whether everyone is doing it or not …
 One’s Conscience: The inner that tell one that this is wrong or Right

Hence, hollistically, and upon looking at all this, .. .. morality has to do with CO-
EXISTENCE.
It becomes clear that a moral person would do what is right and what is of value to him.
This brings us to another level where we ask ouselves, what are Values:
 A value is something that we think is very important and worthwhile.
 Our values affect the way we think, what we say and how we behave.
 Human values are not acquired by accident; rather we get them from other people.

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 i. Discuss what morality means and its application to Kenyan youth
in the current decade.

While answering this question, consider the following:

 The Law (i. e. The Ten Commandments. Thought shall not …).
The opposite leads to Legalism.
 Ones inner conviction (as of beliefs), here, the opposite would
cause
 As of love, Morality is relational and the opposite would lead to
Emotionalism
 As personal Growth = which deals with ones personhood and
whose opposite would lead to Personalism
 As a Social Transformation where we see morality as bringing
about changes in a society and whose extreme leads to Activism.

Where does Morality come from?

 Morals come from issues taught and passed from one person to another. But the original is
based on religious beliefs. Actually without religion, all things may be possible and no
morals are required.

a) Home and Family: As humans, our parents were the first to teach us the differences be-
tween Right and wrong.
b) Friends and Peers: Either in school or elsewhere, our peers elsewhere also start their In-
fluencing.
c) Religion and Church: Peoples outlook is strongly influenced by religion in which they
are brought up. Here, we see that what we learn at home is reinforced by the teachings
and practices of religion.
d) Society and the State: The state passes laws which do influence the morals of people
since it defines what is accepted as good or bad.
e) Emotions: We can actually be influenced by our emotions to behave in certain ways. At
times, this can be positive as we are driven by sympathy or compassion to help needy
People while at other times, it can be negative as when driven by anger or hatred when

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 responding to certain situations. How does this influence people in political and social
Matters?

Sources of moral values

 Religion: The greatest source of values.
 Science: Prove certain facts, phenomenon. E. g. Working too hard is bad for ones health,
hence … …
 Culture: Refers to the set of values, rules / standards transmitted among generations and
acted upon to produce behaviors that fall within acceptable limits
 Law: Rules of conduct, approved by legislature that guides human behaviour in a soci-
ety. Ideally, these rules codify ethical expectations and keep on changing when evils
emerge.
Place of morality in society
It should be understood that Morality is about human and their relationships and that moral
issues are not always simply a matter of stating what is right and what is wrong.

What are the general steps in moral decision making? See illustration below: ---

General Steps in Moral Decision Making

 Morality and Etiquettes

Etiquettes refer to any special code of behaviour or courtesy. For example, It is usually
considered bad etiquettes to CHEW with ones mouth open. Going against the known etiquettes

72
can be considered as bad manners or even un-civilized but not necessarily immoral. Normally,
rules of etiquettes are generally non-moral in nature. Look , as a Kenyan, do you consider
pushing your chair back after leaving a dinning table? However, we see that violation of
etiquettes can lead towards being immoral. For example, a boss who refers his/her junior staff
as honey or doll shows bad manners.

 Morality and law: (Here, we should have our minds wide open and reason … )
Note that there are four (4) sets of law: statues/ regulations/ common law /and constitutional law.
i) Statues: This is enacted by the legislature. E.g. Law prohibiting theft.
ii) Regulations: Here we can have administrative regulations. This arises due to limited
knowledge of legislature.
iii) Common law: This was law that was applied to the English speaking world when there
was no or few statues.
iv) Constitutional law: This refers to court rulings on the constitutionality of any law.

It is common sense that breaking law is not always or necessarily immoral. Similarly, the legality
of an action does not guarantee that it is morally right. What would you say of legal abortion in
the western world when neither the mother nor the child is at any risk?
 An action can be illegal but morally right = Assisting Jewish nationalities to hide
from the Nazis (German) soldiers was against the German Law but it
would have been a morally right thing to do.

 Also an action that is legal can be morally wrong as the

laying out of junior staff in a profitable firm and then using
the money to boost the pay of top managers.

Now, in between the law and the etiquettes, lies a professional code of ethics: the rules that are
supposed to govern the conduct of members of a given profession. In some places, one is not
allowed into a function without a tie or when indecently dressed. Again, in some places, wearing
of Jeans trousers is not allowed in office. Being drunk and disorderly is immoral both at
domestic level and in institutions. Smoking in public is both immoral and illegal as well. A

73
doctor should be seen clean, a soldier may be best placed when in well camouflaged attire while
in combat. A Gods servant (Preacher) should set the example in many forms (dressing,
forgiveness, peaceful, humble, speech, actions, kind, in prayers etc).In fact, in order to enhance
efficient professional system and harmony; many institutions have a set of professional ethics
such as:

 It would be morally wrong to attend classes while in slippers or wearing a hat.

 It would be morally wrong to drop litter within the University compound.
 It would be morally wrong for one to visit the opposite sex in the hostels.
 It would be morally wrong and probably illegal to engage in a physical confrontation
while inside the premises of a named institution.
One can just say: The choice is yours. You know the consequence.
Note = A look at Strathmore University system of ethics is worth of noting, find out !!!!!!!
Ethical relativism
Ethical relativism represents the position that there are no moral absolutes, no moral right or
wrong. This position would assert that our morals evolve and change with social norms over a
period of time. In this regard, this philosophical stand point allows people to mutate ethically
as the culture, knowledge, and technology change in society. In history, we can say that slavery is
a good example of ethical relativism.

Note // Subjective ethical relativism supports the view that the truth of moral principles is
relative to individuals. Subjective relativism allows you to be sovereign over the principles that
dictate how you live your life.

The theory of Ethical relativism holds that morality is relative to the norms of one’s culture. This
is to say that an action is right or wrong depending on the moral norms of a given society in
which it is practiced. It could be morally right in society (A) and very morally wrong in society
(B). Interesting, look at the phrases involved such as commercial sex workers in Washington DC
and prostitution in Least Developed Countries (LDC’s). In Kenya for example, there is nothing
like commercial sex workers but simply prostitutes - (Malaya tu). However, in the western

74
world, the phrase commercial sex workers holds firmly. Which side of the coin are you
in ?.
Albert Carr, reports that a number of things we normally think as wrong are really
permissible in a business context. For example, conscious misstatement and concealment of
pertinent facts in negotiations, lying about ones age in a resume, deceptive packaging,
automobile companies neglect of car safety, utility firms manipulation of regulations and
even over charging electricity users.

Conventional ethical relativism supports the view that the truth of moral principles is relative to
cultures. Look, in many palces of Africa, a daughter may NOT fit well to parents/elders while
she is in short miniskirts, is it the same in the developed world?

“Relativist ignores any religious system built on absolute morals and would convict absolute
ethics. God has the power to convey things to us that are absolute truthful and ethical. Those
absolutes, however, may not be to our liking or please our subjective tastes. “‘For my
thoughts are not your thoughts, neither are your ways my ways,’ declares
the Lord” (Isaiah 55:8))”

Philosopher Peter Kreeft once said that “NO culture in history has ever embraced moral
relativism and survived”. In fact, Greg Koukl has given seven things one can not do as a Moral
Relativist:
i) Moral Relativists cannot Complain About the Problem of Evil.
ii) Relativist Can’t Claim Anything Is Unfair or Unjust.
iii) Cannot Promote the Obligation of Tolerance
iv) They cannot accuse others of Wrong Doing.
v) Cannot hold meaningful Moral Discussions.
vi) They cannot Improve their Morality
vii) Can Not Place Blame or Accept Praise

 Indeed, during the twentieth century many people have come to accept a good deal of the
relativistic perspective.

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  Relativism has entered into the thinking of many people, even people who would hold
for some absolutist ideas. Actually, there are people who hold inconsistent and contra-
dictory ideas concerning morality and ethics. In this regard, we can identify people lean-
ing on three phases of relativism.

Cultural Relativism, Descriptive Relativism, and Normative Relativism

Cultural relativism
 This puts it that there are different cultures and each has different ways of behaving,
thinking and feeling as its members learn such from the previous generation. There
is good evidence to this. For example, it is well known by just about every human on the
planet that people do things differently around the globe. People dress differently, eat
differently, speak different languages, sing different songs, have different music and
dances and have many different customs.

Descriptive ethical relativism

 Describes the fact that in different cultures one of the variants is the sense of morality:
the morals, customs and ethical principles may all vary from one culture to another.
What is thought to be moral in one country may be thought to be immoral and even made
illegal in another country.

Examples of Descriptive Relativism

Moral in USA Immoral in

Eating Beef India

Drinking alcohol, Gambling Middle Eastern Islamic Countries
Women in school or business Afghanistan
Women wearing shorts, face uncovered Iran, Saudi Arabia, Sudan

Or the reverse pattern

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 Immoral in USA Moral or Acceptable
Killing newborn females China, India
Female genital mutilation Many African nations (It is female
circumcision)
Family kills a woman family member who is raped Somalia, Sudan

 Conscious: This is the inner sense of what is right or wrong in ones conduct or motives
impelling one towards the right action. i. e. It is the complex of ethical and moral princi -
ples that controls or inhibits the actions or actions of an individual.


i. Define and Identify examples of ethical relativism in Kenya

ii. How does the dress code for the Est African countries compare?

What is the definition of morality in philosophy?

Morality refers to that which is considered right or wrong. In Descriptive ethics, it is the branch
of philosophy which studies morality in this sense (intelligence).Note that Philosophy literally
means love of wisdom: where,
o Philia= Means love or Friendship and
o Sophia = Means Wisdom.
o It is closely related to
 Epistemology – Study of knowledge, belief, truth, perception,
 Metaphysics – the study of the nature of reality
 Ethics – the Study of morality.
 Morality is the system through which we determine right and wrong .
 Ethics is the philosophical study of Morality

Some important terms

(i). Amorality = Having no moral sense or being indifferent to right and wrong.
(ii). Non- moral = The immoral person knowingly violates human moral standards, the amoral
person on the other hand may also violate standards because he /she may have no

77
 moral sense.

What is natural morality?

 Natural morality describes a form of morality that is based on how humans evolved, rather
than a morality acquired from societal norms or religious teachings. Charles Darwin's theory
of evolution is central to the acceptance of a natural morality

In 1759, (one hundred years before Charles Darwin), the Scottish philosopher Adam Smith
published The Theory of Moral Sentiments.

Smith’s Moral Sentiments was a real scientific breakthrough as it showed that our moral ideas
and actions are a product of our nature as social creatures. Morality is not something we have to
calculate, it is something we feel. According to Adam Smith, though we are mainly interested in
our own welfare, we have an empathy (Smith called it sympathy) for others. We feel their
emotions of joy or grief, and we want them to empathize with us too, by acting in ways that help
and please them. We are struck by conscience when we distress someone. So we curb our own
emotions and self-interest in order to live more harmoniously with others.

The study of morality

Approaches to Morality
(i). The Scientific or Descriptive approach: This is used in social sciences and is concerned
with how human beings do, in fact behave.
(ii). The Philosophical approach: This is divided into two parts:
(a). Normative or Prescriptive Ethics which deals with norm or standards
(b). Meta-ethics or Analytical Ethics = This approach is analytical in two ways
 It analyses language
 Analyses the rational foundations of ethical systems, or the logic of reasoning of various ethi-
cists.

78
Aspects of morality
(i). Religious Morality = Concerned with human beings in relationship to supernatural beings.
Here Albert Einstein disagrees, you see, he argues that supernatural exists and that this belief is
based on faith with no conclusive proof of the existence of the Supernatural being or principle.
In the Christian Moral Living, James 4:17 says = “So for one who knows the
right thing to do and does not do it, it is a Sin.

(ii). Morality of Nature = Concerned with human beings in relationship to nature.

(iii). Individual Morality = This is concerned with human beings in relation to themselves.
How does culture play into this?
(iv). Social Morality = This is noted as the most important aspect of morality and is concerned
with human beings in relation to other human beings. Can culture have a role here?

Moral values
 Moral values are the standards of good and evil, which govern an individual’s behaviour and
choices.

Types of Values
i) Universal values: Has the same value or worth for all. (Peace, human dignity, sanctity
(Purity) of life.
ii) Instrumental Values: Values that can be used to get something else. (Progress, Freedom
Knowledge.
iii) Intrinsic Values: Here, something has an intrinsic value just because of what it is and
not Necessarily what it will lead to (Beauty, happiness, artistic expression)
iv) Prerequisite Value: Values that are necessary before one gets to some bigger goal (e.
mg.
 Safety needed before human can think of anything else
 Justice = needed before we can move to equality and
 Common good which must be honored if we can ever get to a state of peace.

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 v) Paramount Values: The value which above all other things. (Freedom). Some people
gave their lives e. g. Martin Luther King. (Video clip- I’ve been to the Mountain Top -
at 1.40 min)
vi) Operative Value: These types of values are the ways that we make judgments on how to
live the rest of our lives. They are used as an overarching and guiding principles which
tell us what is always right, and wrong (Integrity, Honesty, Loyalty).

5.3 Business Ethical Issues

 Business ethics is the study of what constitutes right and wrong, or good and bad, human
conduct in business context.
 It applies to all aspects of business conduct and is relevant o the conduct of individuals
and entire organization.
 Business ethics is the study of proper business policies and practices regarding potentially
controversial issues, such as corporate, governance, insider trading, bribery, discrimina-
tion, corporate social responsibility(CSR)and fiduciary responsibilities (a fiduciary is a
person or organization that owes to another the duties of good faith and trust).
 It includes moral principles that guide the way a business behaves. It streamlines compa-
nies to act in an ethical ways that involves distinguishing between the right and wrong
and then making the right choice.

NOTE: Three C’s of Business Ethics

We can talk of the three C’s of business Ethics =

(i)Compliance of rules (laws, principles of morality, firm’s [policy), the

(ii)Contribution of business (core values, jobs, useful to community) and the

(iii)Consequence of business (to environment, CSR, public image)

Business ethics is a set of rules that define right and wrong conduct.
Business ethics can be defined as written and unwritten codes of principles and values that
govern decisions and actions within a company.

 Business Ethics comprises of principles and standards that guide behaviour in the world of
business. According to Prof. John Donaldson, Business Ethics can be described as the sys-
tematic study of moral matters pertaining to business, industry, or related activities, institu-

80
 tions, or practices of values in business and industry. According to PriyaKrishmani, business
ethics can be defined as written and unwritten codes of principles and values that govern de-
cisions and actions within a company. It comprises of principles and standards that guide the
behaviour in the world of business.
 The relationship between business and Ethics can be viewed as below:

Yet, others view a separatist view of Ethics, for example, Adam Smith puts it that business is
distinct entity and does not include ethics and morality, (see below:

81
Yet however, we can view have an integrated view of ethics as shown hereunder:

Generally, we can conclude that ethical behaviour is important because:

 Business is a subsystem if a society.

 It empowers all stakeholders concerned
 Reduction in cost of friction with social environment
 Important for organizations leaders because they influence the ethical climate for the rest.

Looking at the above, we can have four basic general business ethics.
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 Ethics of business resource management
 Ethics of sales and marketing
 Ethics of Production
 Ethics of Intellectual property, knowledge and skills.

There are three models of Management Ethics

(i). Moral Management: This conforms to high standards of ethical behaviour.

(ii). Immoral Management: A style devoid of ethical principles and active to what is ethical.
(iii). Amoral Management:- Intentional – does not consider ethical factors: Unintentional -
Casual or careless about ethical consideration in Business.

 Note :;; - Gihan Aboueleish explains that ethical and unethical businesses can be developed
into a Legal Ethical Grid as shown below.

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 i. Assume you are appointed a key leader in Kenya, how would you
handle the issues of ethics and morality.

EVALUATION

We appreciate your evaluation of the course. Please give us comments in the following areas and
forward them to the Dean of the School (email) at your earliest convenience.

Circle the most appropriate response

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Sequence of content Very good Good Poor
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84
The relationship between law and
moral standards
Actually, these two overlap to some extent at some point between what is legal and what is norm.
Laws about driving on one side of the road have an element of respect for people and property.
In many cases, valid laws have to some common element shared moral principles. Look at
adultery, it may mean ending up in jail but cheating is morally wrong for believers Looking at
abortion, people may be required to act as per the law but actually against their conscience. Here,
we see a nurse may be required to assist in the said abortion. You see, Acts: 5:29, refers,
Christians often then claim they must obey GOD but not men; this means that not all that is legal
is morally right.

Actually, note that Moral beliefs and motives can not be legislated – but moral actions or
behaviour can be. In fact, this means that may laws are in some way an imposition of someone’s
morality. In the USA, look at laws pertaining to Abortion, Assisted suicide, Cloning, Same
sex marriage.

In Christian ethics, the Judeo-Christian system, which is a blend of principles and virtues of
morality has had a massive impact on western civilizations, where it quite often acts as the basis
of moral guidelines. The character of GOD is the ultimate reference point for Christian morality.
The Commands of GOD are an overflow from his character. GOD commands that we love our
neighbors because he is himself are Love. We forgive because he is a forgiving GOD. Looking
back in history, we see Augustine (386 AD) who attempted to formulate Christian ethic for a
world which was just beginning to experience Christianity. Indeed, after many years in
hedonism, he ended up as a missionary in North Africa. He was the first Christian to develop a
systematic ethics. He further adds that the supreme joy for humanity is appending eternity with
GOD. He suggested that because of the strong effect of sin on institutions, the state should have
minimum role. Beside, he put it that the Mosiac law and the prophets tend to be very
deontological (principles derived from the character of GOD).

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Ethical egoism and self-interest are actually addressed in Deutronomy 27:30 while agricultural
prosperity and national security are linked to obedience to the covenant. The Bible has no appeal
to relativism (cultural or moral subjectivism).

The Law represents a minimum set of standards for producing a desired human behaviour.
However, Ethics often represent a standard that exceeds the legal minimum requirements.

Questions

1) How are ethics important in business, politics and medicine?

2) Distinguish between morality and ethics.
3) Describe the relationship between morality and the law.

Generally, there are three factors that influence business Ethics

 Individuals standards and values + Managers and Coworkers influence + Opportunity
(codes and compliance requirements) = Ethical /Unethical choices in business.

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Importance of Business Ethics

According to Naveed Ahmed and his collogues, Ethics concern an individual’s moral judgment
about right and wrong. Decisions taken within an organization may be made by individuals or
groups, but whoever makes them will be influenced by the culture of the company. The decision
to behave ethically is a moral one; employees must decide what they think is the right course of
action. This may involve rejecting the route that would lead to the biggest short-term profit. In
many cases,

 Ethical behaviour and CSR can bring significant benefits to the business say by attracting
customers to the firms products, thereby boosting sales and profits.
 It can also make employees want to stay within the business thus reducing labor turn-over
and thereby increase in productivity (High ethical performance also protects the individuals
who work in business)
 It can also attract employees wanting to work for the business, reduce recruitment costs and
enable the company to get most talented employees.
 Attract investors and keep the company’s share price high, thereby protecting the business
from takeover.
 Unethical behaviour or a lack of corporate social responsibility, by comparison, may damage
a firms reputation and make it less appealing to stakeholders. Profits could fall as a result.
Actually, Social Responsibility is a company’s obligation to maximize its profits impact and
minimize its negative impact on the society.

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Also …
 Public expects business to exhibit a high level of ethical performance and social responsi-
bility
 Encouraging business firms and their employees to behave ethically is to prevent harm to
society.
 Promoting ethical behaviour is to protect business from abuse by unethical employees or
unethical competitors.

The nature of Social Responsibility

This can take four (4) dimensions which can be shown in a pyramidal phenomenon.
 Economic = Here, a firm earns profits
 Legal = Here, the firm complies with the law
 Ethical = Here, the firm does it not just for profit only.
 Voluntary and charity = Promotes human welfare and good will.

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 Note // // / With regard to CSR, Adam Smith said, (1776/ 1952) "People of the same trade
seldom meet together, even for merriment and diversion, but the conversation ends in a
conspiracy against the public or in some contrivance to raise prices”

Arguments for Social Responsibility

 Business helped to create many of the social problems that exist and so it should play a
significant role in solving them.
 Business should be more responsible because they have the financial and technical re-
sources to help solve social problem.
 Social responsibility is necessary to ensure economic survival.

However, there are those who argue against the social responsibility. The put it that:
 Participation in social programs gives business greater power, perhaps at the expense of
particular local segments in the society.
 Secondly, many people believe that social problems are the responsibility of government
agencies and officials.

Principles of Admirable Business Ethics (Class discussion)

 Be Trustful
 Keep an Open Obligation Mind
 Meet obligations
 Have Clear Documents
 Become Community Involved
 Maintain Accounting Control
 Be Respectful.

Current Ethical Issues in Business.

(i). Social Networking.
Although it is nearly impossible to curb their use, many issues can arise from employees having
access to websites such as Facebook and Twitter. These may include potential breach of
confidentiality, conflicts of interest, misuse of company time and resources, disclosure of private
information and even damage of company reputation.

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(ii). Surveillance and Privacy / Employee privacy
 Due to the rapid rise of surveillance technology, businesses face the challenge of balanc-
ing individual employee privacy with protecting the health of their companies. Employ-
ers require the use of this technology for several reasons, including recovering lost com-
munications, limiting legal liabilities, protecting sensitive information and ensuring that
their employees do not violate company policies.

(iii). Transparency= working environment

 It has grown to mean the practice of being forthright in all aspects — both positive and
negative — of a company’s practices. To make their companies as transparent as possi-
ble, leaders can emphasize the practice in all facets of their operations including em-
ployee conduct, internal culture and corporate objectives.

(iv). Child Labor

 Violations of child labor still persist. This is particularly true in large companies where
leadership is far removed from manufacturing and other ground-level operations. To
combat this problem, companies should commit both privately and publicly to specific
policies regarding child labor.

(v). Environmental issues / Protection

 Companies need to balance their desire to earn profits with adopting processes of sustain-
able operations. Important issues here include Issues of pollution, hazardous wastes,
chemical and nuclear spills and accidents, global warming contribution and deforestation,
among others.
(vi). Unauthorized payments
(vii). Product safety standards.

Advantages of Business Ethics

 Business Ethics offer companies a competitive advantage.
 Good will of the firm hikes depending on its responds towards its ethical issues.

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  Productivity through rigid, firm and sincere workers as well as other business chain mem-
bers.
 Through increasing morale and trust business can increase their market share.
 Publicity due to well and ethical performance of the company. Words of mouth is the
fastest and the best source to gain market. Thus a good performance will help in publicity
through words of mouth of general public.
 Acceptance of products.

Disadvantages of business ethics

 Business ethics reduce a company’s freedom to maximize its profit.
 Diversity of achievements. A company may diverse from its achievement and turn to-
wards other directions.
 Extra expenditure in some cases. A Company may incur extra expenses in solving some
unethical issues.
 Note that, indeed, fairness in business dealings means being objective and
having an interest in creating a win-win situation for both parties whether that
is employer–employee or company-client.

Reasons why ethical problems occur

 Personal gain
 Individual values widely differ with organizational goals
 Managers values and attitudes
 Competitive pressures
 Cross-cultural contradictions.

Class discussion: Sources of Ethical Norms,

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Place of morality in society
In life, there are some things we feel we should do like helping old people and giving charities-
these are inspired by empathy and the desire to help others. On the contrary, there are other
things we feel we should not do like stealing, killing etc. These actions and thoughts are
censored and suppressed. In this regard, we can see morality in two separate interacting agencies.
The Empathic response agency inspires people to take action to help others while the moral
restraint response agency censors and suppresses immoral actions and the associated thoughts
that may lead them. Now, these makes up the Society of Morality. Look, although these two
agencies interact, they perform significantly different functions. The moral restraint agency often
needs to take immediate action to keep us from doing things we would regret later or which
would have unfortunate consequences. In fact, people appear to use it to pass judgment on
whether the actions of others are "bad”. On the other hand, empathy is always inspiring us to
take action. When we see others in need, we have a desire to help them and to perform a "good
deed". Looking at many scenarios of lives and at different ages of people, we can see a structure
for the moral constraint agency. Actually, at the bottom we have many beliefs and desires from
different higher authorities, made by our selves while others are things we are driven to do.
Next, above we have the managerial agency which organizes our morals and beliefs and decides

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what to accept and not to accept. Now, the output of this managerial agency is then used to
censor and suppress our thoughts and actions (see the figure below).

Adapted from Erik Nygren

The Kohlberg’s Stages of Morality.

 The way our beliefs are organized has a significant effect on what we suppress and what
we believe is right and wrong. Although the specific beliefs may vary greatly between in-
dividuals and between cultures, the way we organize the beliefs is much less variable.
Lawrence Kohlberg studied morality by presenting subjects with a series of moral dilemma and
then analyzing their reactions depending on the reasons for picking them. From the observations,
he developed a stage theory of morality with six stages as summarized byBrown & R. J.
Herrnstein (1975)

Stage 1 – Punishment and Obedience orientation (Preconventional)

 Here, rules of conduct derive their force from the power figures who back them and the
primary focus is on avoiding punishment. Rules are looked at as concrete, prohibitory,
and not universally applicable.
Stage 2 -- Instrumental relativist orientation (Preconventional)

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  The focus in this stage is on satisfying the desires of one's self and of others who are
cared about. Very practical and physical reciprocity is also incorporated into the moral
system (e.g., "an eye for an eye")
Stage 3 -- Interpersonal concordance (Conventional)
 Here, the rightness of actions is determined by intentions. The goal is to win approval
from others by pleasing and helping them.
Stage 4 -- Law and order orientation (Conventional)
 Morality is absolutely determined by the rules and laws established by authority. Main-
taining law and order is more important than selfish desires.

Stage 5 -- Social contract orientation (Postconventional)

 In this stage, what is right is determined by the laws which a community has chosen.
However, the laws do not absolutely define values and principles, and the laws may be
changed using established procedures.
Stage 6 -- Universal ethical principle orientation (Postconventional)
 Morality is defined in this stage by an ethical system defined and chosen by one's self.
The conscience is the guide to defining the principles; however one is not at liberty to
choose arbitrary morals. The ethical system constructed must be universally applicable
and logically consistent.
Kohlberg discovered that many of the same results which applied to the development of common
sense reasoning also applied to the development of morals. People seem to progress through the
stages sequentially, with each stage relying on things learned in the previous stages. Higher
stages can't be explicitly taught, but can only be learned over time. People also showed an
inability to fully understand stages higher than their own. There were also some differences from
the common sense stages. Different people progress through the stages at different rates, and
most people never reach the highest stage. In fact, stages three and four are the most common
among adults (see Figure below). In many experiments, no subjects were identified to be in stage
six.

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XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

LATEST ISSUES IN AFRICA CLIMATE AND ENERGY ISSUES

DEVELOPMENT STUDIES AND ETHICS

The rivalry between great powers involves much jostling over alliances. What does this mean in practice
and who is winning? The past month has provided a chance to examine two competing alliance-building
efforts. One is the push, led by China, to create a bloc of emerging economies that acts as a counterweight
to the West. This was the aim of the brics summit held this week in Johannesburg, attended by Narendra
Modi and Xi Jinping, the leaders of India and China. The other is America’s strengthening of its defence
network in the Pacific. Of the two efforts, America’s is more convincing.

The gathering of the brics brought together Brazil, Russia, India, China and South Africa. The stated goals
were to expand the club’s membership and deepen its capabilities in areas such as development lending
and financial payments. The event showed a widespread appetite for a less Western world order: six
countries were invited to join the brics starting in January 2024, including Argentina, Iran and Saudi
Arabia. But it also showed how such a disparate group will struggle to be effective.

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If the aim is to project common values, it hardly helped that Vladimir Putin had to address the summit by
video-link—for fear that the South African hosts would have to enforce a global arrest warrant against
him for war crimes. As the group expands, tensions may rise: India fears its influence will be diluted,
giving more sway to China. Defence co-operation is probably out of the question. The effort to create a
common financial infrastructure (let alone share a currency) looks too ambitious for countries with very
different economies and politics. Rather than a body capable of acting widely and consistently in a
coordinated way, building global norms and institutions, the brics may end up with a significant but more
limited role. Its members may co-operate on narrow issues where they agree, such as rich countries’
obligations in the energy transition, and sometimes act together to attack or try to block Western-led
initiatives.

QUESTION ONE - -COMPULSORY (30 MARKS)

a) Examine the implications of the newly created BRICKS alliance headed by China with
respect to the following.
i. Global economy (4 marks)
 Efforts to from a common financial infrastructure may be too ambitious for countries
with different economies and politics and therefore influence on the global economy
may be limited
 India may experience some dilution giving sway to China
 Members may only cooperate on a narrow issues where they can agree such as obli-
gations in energy transition
 African states may be caught in the confusion of supporting either alliance
ii. World security (4 marks)
 As the group expands, it may raise tension among other global alliances such as
NATO and AUKUS among others
 Defense cooperation may not succeed due to different objectives among member
states
 Members can easily agree and act on issues either to attack or block western led ini-
tiatives
 Many African states will be in a dilemma of joining either of the alliances due to vari-
ous historical issues on both sides.

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