The root causes of ethical dilemmas and leadership failures at state-owned enterprises and public institutions in South Africa

Abstract

This article investigates ethical dilemmas and leadership failures within South African state-owned enterprises (SOEs) and public institutions. Persistent misuse of power and inequitable decision-making continues to challenge the effectiveness and legitimacy of these organisations, reflecting both systemic pressures and the socio-political legacy of apartheid. The article focuses on how leadership failures emerge from structural constraints, cultural transmission, and moral disengagement, rather than solely from acts of corruption. It critically examines the root causes of leadership and ethical lapses, with the aim of creating awareness and informing governance practices, by applying insights from deontology, utilitarianism, virtue ethics, cultural reproduction, and social action theory. Findings reveal inter alia that ethical and leadership failures are perpetuated by systemic conditions and cognitive overload, highlighting the urgent need for leadership paradigms rooted in integrity to enhance governance and accountability in SA public institutions.