Strategic Choice (Group 4)

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The purpose of having a strategic choice in implementing an Organizational Anti-

Corruption Plan (OACP) in Malaysia is to ensure that the plan is tailored to the specific needs
and circumstances of the organization. A one-size-fits-all approach may not be effective in
addressing the complex and dynamic nature of corruption, which can take various forms and
manifest itself in different ways in different organizations. Therefore, it is important to have a
strategic choice in implementing an OACP to ensure that the plan is customized to the specific
risks and vulnerabilities of the organization and is aligned with its overall objectives and values.

There are several key factors that should be considered when making a strategic choice in
implementing an OACP in Malaysia. These include the following:

1. The nature of the organization: Different organizations have different structures, cultures,
and operating environments, which can influence the way in which corruption may
manifest itself. Therefore, it is important to tailor the OACP to the specific needs and
circumstances of the organization.
2. The level of corruption risk: Different organizations may face different levels of corruption
risk depending on their size, sector, and geographic location. It is important to assess
the level of corruption risk faced by the organization and to design the OACP
accordingly.
3. The resources available: The implementation of an OACP requires resources such as
time, money, and personnel. It is important to consider the resources available to the
organization and to design the OACP in a way that is feasible and sustainable.
4. The legal and regulatory framework: Malaysia has a comprehensive legal and regulatory
framework to combat corruption, including the Malaysian Anti-Corruption Commission
Act 2009 and the United Nations Convention Against Corruption (UNCAC). It is
important to ensure that the OACP is compliant with these laws and regulations.

In conclusion, the purpose of having a strategic choice in implementing an OACP in Malaysia is


to ensure that the plan is tailored to the specific needs and circumstances of the organization
and is effective in addressing the complex and dynamic nature of corruption. By considering
factors such as the nature of the organization, the level of corruption risk, the resources
available, and the legal and regulatory framework, organizations can develop an OACP that is
customized to their specific needs and is aligned with their overall objectives and values.
Strategic Choice

1. Diversification Strategy: Unrelated Diversification

The goal of the diversification strategy is to increase the amount of variety present in the
geographic regions and economic subfields in which enterprises operate. Businesses may reap
various benefits from diversification, including but not limited to the spreading of risks and a
variety of other financial and non-financial benefits (Tien, 2020). To begin, diversity is important
for more reasons than just spreading risks over a number of various firms. If that were the only
reason, owners could easily acquire shares in a number of different companies. However,
diversification does more than that. Second, diversification will only make sense if it can raise
the advantages for owners to a greater extent than those benefits can be increased by the
owners investing on their own. Therefore, a sector or area that is chosen for diversification
needs to be alluring enough to generate larger profit margins and support more company
sectors than it does when the sectors are operating independently.

Unrelated diversification, also known as non-linked diversification, refers to the practise of


applying the concept to firms that specialise in a particular field. In this type of diversification, the
creation of new activities can only be expressed in isolation from those that came before. To put
it another way, non-aligned diversification involves expanding into new business sectors that are
unrelated to the company's existing business sector. Unrelated diversification is a strategy in
which a company expands into new and unrelated industries or markets to diversify its business
and mitigate risk. This can be a risky move, as it requires the company to invest in and learn
about new industries, but it can also provide significant benefits if successful.

Malaysian Anti-Corruption Commission (MACC) is an agency that is responsible for preventing


and combating corruption in Malaysia. As part of this mandate, SPRM has implemented an
organizational anti-corruption plan that involves several different strategies and initiatives. Not
just only Malaysian Anti-Corruption Commission (MACC), under YAB PM Instruction No.1 Year
2018, Series 2 No.1 Year 2019- Article 6.1.2, it gave the mandates to the other agencies such
as Integrity Institute of Malaysia (IIM) and National Governance, Integrity and Anti-Corruption
Center (GIACC). As these agencies does not relate with any business activities (public sector)
and the function of each organization are different, hence the strategic choice to implement
OACP is unrelated diversification. These include educating employees about the dangers of
corruption, establishing clear policies and procedures for preventing and reporting corruption,
and collaborating with other government agencies and organizations to tackle corruption.

The Integrity Institute of Malaysia (IIM), the National Governance, Integrity and Anti-
Corruption Center (GIACC), and the Malaysia Anti-Corruption Commission (MACC) all play
significant roles in the country's implementation of the Organizational Anti-Corruption Plan
(OACP). Each group has its own set of skills and resources that make it an excellent ally in the
battle against corruption. The Institute for Integrity and Ethics in Management (IIM) is a non-
profit group with the mission of improving corporate and public sector cultures of honesty and
fairness. In order to achieve this goal, they provide educational and training events, in addition
to engaging in research and lobbying efforts. The knowledge and experience IIM has in creating
and delivering integrity training programmes would be extremely useful in the context of the
OACP in order to increase awareness and educate stakeholders on the significance of anti-
corruption initiatives. In contrast, the GIACC is a government organisation in Malaysia charged
with advancing the country's anti-corruption, integrity, and governance initiatives. They achieve
this through conducting research and monitoring activities and giving advice and suggestions on
policy matters. Organizations can go to GIACC for help in creating and executing anti-corruption
initiatives within the context of the OACP. The Malaysian Anti-Corruption Commission (MACC)
is a government organisation that conducts investigations and brings charges in cases of
alleged corruption. They accomplish this goal through conducting inquiries, collecting evidence,
and making arrests. To enforce accountability for corrupt activities inside organisations and
pursue legal action against corrupt persons or entities would be MACC's responsibility under the
OACP.
With diversifying their expertise, they can achieve collecting benefit which all of them contributes
to the implementation of OACP which aimed to resolute the corruption issues among employees
in Malaysia. Together, these three groups may use their synergies to develop a powerful anti-
corruption plan. GIACC's policy advice and research initiatives guide and support organisations
as they create and execute anti-corruption measures, while IIM's training and education
programmes lay the groundwork for doing so. The MACC's ability to investigate and prosecute
cases of alleged corruption provides the necessary enforcement and deterrents to guarantee
that businesses are held to account for their actions. One example of this unrelated
diversification is the partnership between Malaysian Anti-Corruption Commission (MACC) and
the Public Service Department (JPA), which is responsible for overseeing the appointment,
promotion, and transfer of civil servants in Malaysia. By working together, Malaysian Anti-
Corruption Commission (MACC) and JPA have been able to more effectively identify and
address instances of corruption within the civil service.

In conclusion, the cooperation between the IIM, the GIACC, and the MACC is an illustration of
unrelated diversity of strategic option, since each institution is able to contribute its own set of
skills and expertise to combating corruption in Malaysia. As part of this plan, Malaysian Anti-
Corruption Commission (MACC) has also diversified its operations by partnering with other
government link companies to help implement the anti-corruption plan. This has allowed
Malaysian Anti-Corruption Commission (MACC) to leverage the expertise and resources of
these other companies, as well as to broaden its reach and impact in the fight against
corruption.

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2. Government Reform Strategy

It is common knowledge that corruption is a societal disease that is prevalent in the majority
of countries around the globe. The so-called "syndromes of corruption," which include elite
cartels, clans, and oligarchs, as outlined by Johnston (2005), place instances of corruption in a
variety of settings. Certainly, instances of corruption may be found in both the public sector
(Anechiarico and Jacobs, 1996; Auriol & Blanc, 2009) and the business sector (Argandoa, 2003;
Castro et al., 2020; Lange, 2008). The detrimental impacts of corruption are brought to light in a
sizeable fraction of the expert-level writing that was published toward the latter half of the 1990s
and focused on the public sector. Although the country's long track record of public
administration since independence and its adoption of international best practises, Malaysia has
consistently fared poorly in international surveys measuring public trust in public institutions. As
political power consolidated, many of the mechanisms created to root out corrupt officials were
weakened. The public did not get furious enough to vote out the political party that had been in
power for nearly 60 years until the extent and degree of corruption in the 1MDB sovereign
wealth fund became publicly known to civil society and the global media. Hence, the second
strategic choice that suitable to be taken is government reform strategy. The strategy's purpose
was to maximise integrity at all levels as a preventative measure against corruption, therefore it
placed an emphasis on human and institutional ethics beyond merely complying with formal
rules and regulations. Moreover, partially in reaction to public and civil society's increasing
dissatisfaction with the government's general quality, service delivery, degree of red tape, and
lack of anti-corruption initiatives, changes were implemented in 2009.

In terms of monitoring strategy, government has reform its strategy by using advance
technology. It helps optimize operations and increase strategic outreach by leveraging
technology to deploy cutting-edge procurement methods. Technology will generate ongoing
improvements in processes, data, and insights, ultimately leading to cost reductions.
Technological advancements are assisting in the fight against corruption by encouraging
governments and the private sector to improve transparency and for citizens to demand greater
accountability. For example, potential whistleblowers, have more channels of reporting,
including through encrypted messages. Information about assets, travel, and procurement is
now easier to access. Malaysia has made substantial progress toward using e-governance,
online platforms, and mobile technologies for openness, public scrutiny, and social benefits,
which ASEAN has identified as an essential part of bridging development gaps. MACC
demonstrated their respective complaint online management systems and mobile applications
for reporting corruption. These digital platforms are mobilizing a big number of citizens and
serving as a valuable source of information for detecting corruption. Not only that, it has been
proven also by The Federal Land Development Authority (FELDA) which FELDA has introduced
latest technology which Anti Bribery Management System (ABMS) in combating corruption.
Thus, by reforming the monitoring activities, it helps government to curb the corruption issues
among public and private workers. Moreover, under the plan of OACP, government also has
introduced the usage of high technology such as big data, artificial intelligence and also
Blockchain & Distributed Ledger Technologies (DLT) which all of them contributes to curb
corruption issues.

In terms of training and education strategy, government also has improvised their initiatives.
One such strategy that has been utilized by the SPRM is the use of training and education
programs to improve government employee’s performance. These programs aim to increase
awareness of the negative impacts of corruption and provide employees with the knowledge
and skills necessary to prevent and report instances of corruption. Additionally, the SPRM has
implemented measures such as strict financial reporting requirements and the use of integrity
pacts, which require contractors to pledge to adhere to high ethical standards in their business
dealings with the government. One such strategy that has been utilized by the SPRM is the use
of training and education programs for government employees. These programs aim to increase
awareness of the negative impacts of corruption and provide employees with the knowledge
and skills necessary to prevent and report instances of corruption. Additionally, the SPRM has
implemented measures such as strict financial reporting requirements and the use of integrity
pacts, which require contractors to pledge to adhere to high ethical standards in their business
dealings with the government. This also includes reforming organizational resources as it
involved the planning processes on how the government creates the new policy that acts
directly to curb and fight corruption in all areas. The government has provided a complete
guideline for implementing and developing OACP in any organization, public and private sector.
The top management plays a crucial role to ensure that the process of OACP is conducted in a
clear and direct way to avoid any issues so the corruption prevention efforts can be
implemented more structured, comprehensive, inclusive, and holistic. Moreover, human
resources refer to skills and knowledge required to build a strong confidence level among
clients. The organization's strategy and its performance record can directly contribute to
improving the confidence among external actors which is clients. Restructuring human
resources includes the process to send them to train and to gain some exposure in regards with
the disadvantage to get involve in corruption. Such initiative can be done by The National
Institute of Public Administration (INTAN) which aims to improve the quality of the public
servants to comply with the rules and regulation which also can contribute towards the
implementation of OACP.

Overall, the strategic management efforts of the SPRM in conjunction with various
government agencies have been successful in reducing instances of corruption within the
government. While corruption is a persistent problem, the implementation of these strategies
has helped to create a more transparent and accountable government, which ultimately benefits
the people of Malaysia.

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