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Diaspora Matters

Office Entanglements and Risk Management

office

The greatest weakness organisations face is when supervisors are engaged in illicit affairs with subordinates! For risk professionals its tricky how to find this out—this is why even in risk registers this area does not often appear. It is difficult to rely on hearsay as one needs evidence. In most cases the evidence is hidden as parties engage in entanglements in privacy.

However there is an unwritten rule of matters of the heart –as soon as parties engage themselves in between the sheets, respect is instantly lost!

This is how third parties get wind of an affair between parties. A boss commanding respect by everyone at a company may have that one subordinate with little respect and everyone is bound to find out.

What are the implications of office romance?

  • As soon as the rest of the employees find out—respect is lost by everyone.
  • Zimbabwe is still a culturally sensitive country and some will take matters into their own hands and report. If they fail to report within, they are bound to engage tabloids, use social media or other platforms.
  • If the boss is a man, then his wife is bound to find out,
  • If the boss is dating a married woman, then the husband of the woman is bound to find out,
  • Company secrets are as good as gone once bosses engage in illicit workplace affairs,
  • Internal controls are the first victim due to office romance. The fastest way to losses is office entanglements,
  • Poor morale is inevitable once other employees find out that hard work is not enough for promotion and benefits,
  • If a supervisor engages is a couple of affairs, the company becomes a jungle as the affected parties can start open fights or even creating tag teams fighting each other,

Therefore the greatest risk facing any business entity if office romance!

Whereas at established companies, many fear human resources policies sanctions and hide affairs, for small businesses, founders can openly engage in affairs fearing no one,

This means competitors and other employees can quickly spread word of shenanigans to others,

Once you get entangled to a junior as an entrepreneur, that junior is instantly elevated to the position of business partner.

  • You now need to pay the junior extra salary and benefits,
  • You also need to share profits,
  • You also need to factor in losses due to the junior stealing or misusing resources,
  • You face reputational losses when things go sour or even law suits,

As soon as you put on clothes after sleeping with a junior, just remember the business is gone! All the hard work flies through the window….

So where does the problem starts from?

Researchers say during recruitment, bosses especially men recruit those they like and by default those they are attracted to! Bosses in most cases have final say of who they hire and this is the source of problems from day 1.

Managing office entanglements

  • Companies should have solid policies for protection against losses from office entanglements,
  • There should be regular awareness programmes of office romance risks,
  • There should be internal mechanisms for managing reported cases of office romance,
  • Failure of reporting internally will lead to information leaking outside where its impossible to control and comes with heavy costs,
  • Conduct anonymous surveys (audits) where employees report whether they suspect there are illicit affairs at the company and present the reports at selected intervals. This can be used as a deterrent to involved parties. If 90% employees suspect there is office romance then there is need to take corrective action. This is a recommendation auditors can factor in reports to management especially for big companies that stand to lose out big by sex scandals.

As for start-up, just remember you are on your own and all the work can be up in smoke due to entanglement with a subordinate and in some cases can be with clients. So tread carefully in this area. Read more about ethics and practise them, for unethical practices=heavy losses!

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Diaspora Matters

Stock Exchange Investment Consortium

zsw

The year just ended 2020 was horrible year in many aspects—millions of lives lost, millions infected, many businesses in the grave yard and the few which survived still struggling to get back on feet. However there are a few exceptions like local manufacturers who enjoyed brisk business as borders were closed leading to focus and support of locally manufactured products!

For our forum, we can safely say this is the year members came to the party!

We witnessed a great spirit of support with well attended meetings and events. All the behind the scenes hard work finally paid off in 2020 with the forum also witnessing rapid growth from 50,000 members in January 2020 to 92,000 in December 2020.

The number of views for our Facebook Forum also shot up from a monthly 400k to end at 700k providing a rich market place for entrepreneurs in Zimbabwe.

This is also the year Crowdfunding peaked in Zimbabwe with a record 6 companies registered (Agri-volution, Nutricio, Big Ideas Galore, Patsime, Global Runners and Ziglobal Runner). We are looking at adding a record 10 more companies in 2021 starting with a Stock Exchange Consortium.

The performance record of the ZSE in 2020 is featured below:

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2019 Closing Value=US$1.8 Billion

2020 Closing Value =US$3.8 Billion

Net gain +115%

Using Parallel Market Rates

2019 value $1.17 Billion

2020 value $2.7 Billion

Net gain +130%

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Stock Exchange Investment literacy is very low in the country leading to many easily falling prey to ponzi schemes. We witnessed the collapse of many ponzi schemes in 2020 which is really regrettable. A lot of our members also lost out despite an avalanche of advice we posted interminably.

So in 2021 we are looking at pooling resources into a trust and then exploring opportunities on the Zimbabwe Stock Exchange and the Victoria Falls Stock Exchanges. This is a trial run and only for those who are patient enough to invest small amounts—watch closely performance and make decisions to withdraw, remain or invest more.

The forum will engage a reputable stock broker who will assist with all logistics so that we get professional advice. We sold the idea to the forum yesterday (last year) and there has been an overwhelming response—we would like to thank everyone for the interest and input.

To those with little or no financial knowledge on stock exchange investment—this is your perfect learning platform and the knowledge will assist you to invest on your own.

We are going to form the Whatsapp group on the 15th of January 2021 and we will widely share the group links on the forum for those interested in the initiative.

So mark 15 January 2021 on your calendar.

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