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Banks must spare us another energy debt – credit consultant

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Ken Ofori-Atta, Minister of Finance

As the government steps up to clear the US$2.4 billion energy sector debt, commercial banks would have to get their credit decisions right, moving forward, to spare the taxpayer another humongous debt in the future, Emmanuel Akrong, a credit consultant has said.

“Poor credit decisions” by commercial banks, he argues, contributed a lot to the buildup of the debt, since the banks ignored the poor financial state of State-Owned Enterprises and the lack of any “explicit guarantees” from government and went ahead to advance the credit to the VRA, ECG, GRIDCo, TOR and NEDCO.

“While I understand some of the reasons that led to this situation, I have pointed out on several occasions, that I am not advocating that banks should not lend to energy-sector SOEs.

However, banks should lend to such entities in a responsible way by following good credit practices and not put the bank itself at risk, such as exceeding single obligator limit and end up putting innocent civilians in the situation of paying for avoidable levies,” he said.

“My view is that it is largely due to corporate greed that some banks were lead to giving credits to the SOEs. Such greedy banks, every now and then, scream for the Government to bail out the energy sector. Their main issue is that it is presenting liquidity problems to them. So, why will you lend to an SOE and have liquidity problems and then expect the Government to bail you out?” he quizzed.

Government, last Friday, concluded the auctioning of the energy bond after, after a one-week extension due to undersubscription of the first tranche of GHS6 billion.

Whilst the 7-year bond made the GHS2.4 billion mark after auctioning closed on October 27, 2017, the 10-year bond failed to raise GHS3.6 billion.

High NPLs

The indebtedness of the SOEs and BDCs to the banks is largely blamed for the prevailing high non-performing loans ratio in the banking sector, which currently is about 21 percent. This means that for every one cedi given out as a loan, banks are unable to recover 21 pesewas.

“In my view, many people point to symptoms of the problem and not the problem itself,” Mr Akrong said. “It is true that the key risk to the banking industry is the high stock of impaired assets to total loans as measured by NPL ratio, of which energy related SOEs and BDC contribute to that number.”

While there are several triggers of credit risks, Mr. Akrong said in the case of the SOEs and BDCs, the primary cause of default is the irresponsible credit decisions taken by some banks, although he acknowledged other possible triggers relating to economic conditions such as oil prices, government action to subside oil prices; and the inability of Tema Oil Refinery to raise sufficient working capital/letters of credit facilities to import oil which, in certain periods, almost halted the operations of TOR and other activities.

“In my view, it is a moral hazard for innocent Ghanaian tax payers to continue to bail out Banks for their bad credit practices and greedy corporate actions,” he said.

BoG to get tough on RCBs …as paid-up capital requirement deadline draws closer

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Governor, Bank of Ghana
Dr. Ernest Addison

The Bank of Ghana in 2015 raised the minimum paid-up capital requirement of all rural and community banks in Ghana from GH¢300,000 to GH¢1million. All the 141 rural and community banks were expected to raise their paid-up capital to GH¢500,000 by December 2016 and GH¢1million by December 2017.

As at June 2017, out of the 141 rural banks in Ghana 51 had met and exceeded the GH¢1million   threshold paid-up-capital; 51 RCBs also had paid-up capital ranging from GH¢500,000 to GH¢950,000; and the remaining 39 RCBs’ paid up-capital ranged from GH¢137,000 to GH¢464,000.

Mr. Kofi Amoa-Awuah, Head of the Other Financial Institutions Supervision Department, OFISD, Bank of Ghana, in a speech delivered on his behalf by Mr. Yaw Akomgong at the 16th National Managers’ Conference of the Rural and Community Banks held recently in Ho, reminded the industry of the approaching deadline.

Mr. Kofi Amoa- Awuah, who raised other regulatory concerns, mentioned weak credit risk management culminating in high NPLs as a result of poor appraisal of credits, lack of monitoring and weak recovery systems. 

According to him, some rural banks – especially those with BoG’s composite ratings of ‘critical’ and ‘unsatisfactory’, continue to violate the 8% Primary Reserve Requirements.

The RCBs, he said, must therefore ensure that they are liquid at all times so as to inspire confidence in the public.

The Bank of Ghana official also warned against the continuous investment in unprofitable subsidiaries and fixed assets, which has serious implications for liquidity.

Besides, he said, many RCBs also do not comply with the 10% minimum capital adequacy ratio requirement as stated in Section 29 (2) of the Banks and Specialised Deposit-Taking Institutions Act 2016, (Act 930). This indicates that non-compliant institutions have insufficient funds to absorb unanticipated losses, and therefore the safety of customers’ deposits is jeopardised. 

He further mentioned that weak boards and management usually result in operational losses, weak loan recoveries and high cost-centres, and investments in high risk institutions – all of which drive the CAR below the 10% prudential threshold. 

Dynamic and well-functioning economies depend on widely-accepted forms of banking to improve the standard of living for their citizenry and support growth of enterprises. In the era before the late 1970s, rural dwellers in Ghana had almost no access to institutional credit; and in many rural communities, secure, safe, and convenient savings and payment facilities hardly existed.

In response to this situation, the government of Ghana, together with the Bank of Ghana, took several measures to increase access to credit in rural areas, including facilitating the establishment of Rural and Community Banks (RCBs).   

Rural Banks have not only played an important role in the development of the financial services sector of Ghana economy, but have also contributed meaningfully to the lives of people in various communities in terms of education, health, security, employment, business among others, in their catchment areas across the country.

Meanwhile, Mr. Simon Nero Davor, Volta Chapter President of the Association of Rural Banks (ARB), has appealed to the Bank of Ghana (BoG) to soften its stance and be considerate in imposing penalties on rural and community banks.

According to him, if the penalties being imposed are not paid, it could lead to the collapse of rural banks with social impacts on rural economies.

He mentioned that a good number of rural and community banks are facing challenges and urged the BoG to devise means of reviving such banks instead of closing them down, which could cause loss of customers’ deposits, as well as loss of jobs and rural enterprises.

Another major challenge facing RCBs, Mr. Davor said, is managers giving loans to themselves – either personally or through third parties – and cautioned them to desist from the practice.

Public Speaking: how to face any crowd with confidence

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Are you familiar with the feeling?  Your heart pounds, your mouth feels dry and you start sweating. In an air-conditioned room!  The MC has just announced your name and the audience is clapping enthusiastically as they wait for you to get up onto the stage.  Instead of getting ready to speak, you feel as if you should just flee the scene.

Like a condemned man whose time is up, you shuffle forward in extra slow motion.  Questions are bouncing around frantically in your head.  What at all was I thinking when I agreed to speak at this function?  What if I don’t perform well?  Can I face this crowd?  What if they don’t like me? 

A few years ago, I had the pleasure of emceeing the Grand Finale of the Springboard Road Show in Kumasi, Ghana.  Before the event, I took part in a ‘Power Mentoring’ session with a couple of young people who wanted some pointers on career advancement and public speaking.  A common concern was the question of nerves and how to summon enough courage to face a crowd.

Let me share with you the tips I gave those young people I met in Kumasi.  To recall them easily, just think of the word SMILE.  Every letter stands for a particular method.  Use them together and you will have a solid system for fighting nerves when you speak in public.

First of all, recognize that feeling nervous about speaking or any other important task is a perfectly normal reaction.  Even the most experienced people feel like this.  Some have been known to even throw up.

The trick is to channel your nervousness into a productive output.  Or to put it in another way, you may feel like you have butterflies in your stomach but the important thing is to make them fly in formation.   But how do you do this?

S for See

It is important to prepare your mind for success long before you get onto the stage.  Visualizing a positive ending will give you a sense of control and imbue you with confidence.

So hear the audience clapping warmly in appreciation of your speech.  Imagine the other speakers congratulating you on a job well done.  Feel the sense of pride you get from knowing that you have performed to the best of your ability.  Repeat this visualization exercise just before you speak – it will help you take care of those nerves.

M for Meet

A good way to face the crowd is to meet them before you speak.  This means arriving at the venue early enough to mingle with the audience before the event actually begins. Smile, go up to an audience member and introduce yourself.  Tell the person you are glad they came and assure them of a good time.  Repeat the process for at least 5 other guests.

When you do eventually get on the stage and scan the audience, you will recognize the familiar faces of people you met earlier.  Suddenly the audience is no longer one mass of strangers.  You ‘know’ some of them and that knowledge will help you get rid of your nerves.  After all your ‘friends’ are in the audience and they are expecting you to do well.  Why worry?

I is for Introduce

Imagine you attend a relationship seminar and a speaker opens her talk like this:  “I am about to tell you the two words that are absolutely needed to make your spouse happy.”  Would you get up and leave?  Or would you stay to find out what those two words are?

The first words that come out of your mouth should make your audience want to listen further.  If that happens, good news – you have hooked them.  If your initial words elicit a feeling of disinterest or boredom, you may tense up and get nervous.

The way to control your nerves when you start speaking is to plan your introduction with care.  It should be relevant, even thought-provoking if you want.  Memorize it and deliver your lines with passion.  Research has shown that audiences remember the beginning and end of a speech better than the body so treat the conclusion of your talk in similar fashion.

L is for Look

Look at your audience when you are speaking and you can beat your nervousness.  Most people will not know you are shy if you look them in the eye when you are talking to them.   Here is how to do it.

Scan the audience and locate your new friends from the ‘meet and greet’ zone.  Imitate the action of a windscreen wiper and let your gaze sweep the room in an arc from left to right.  If you did your ‘meet and greet’ well, those people seated around your new friends will get the impression that you are also connecting visually with them.  They will most likely smile at you.  Please smile back.  You are facing the crowd, not out of nervousness but with confidence.

E is for Enjoy

As a speaker, take note of the following points:

  • Ø Know your audience – (gender, age, profession, religion) so you can tailor your remarks to the various people who make up our audience.
  • Ø Know yourself – only speak about things about which you have knowledge

Be serious about your preparation but don’t take yourself too seriously.  If you stumble over certain parts of your speech, don’t worry – try to laugh it off and keep going. Engage your listeners – ask them questions.

Your awareness of your audience and yourself will enable you to relax and enjoy the speech without leaving any room for nerves.

So there you have it.  Those are your 5 SMILE pointers to help you face any crowd – see yourself succeed; meet the audience; introduce your talk; look at the audience; and enjoy yourself.

Keep in mind that you have to practice constantly and then put the tips into action often.  Nervousness is a natural phenomenon for speakers but you can control it and face any crowd with confidence if you remember to SMILE!  You can do it!

 

Nadia Buari’s Deranged gets huge turnout

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All roads led to Silverbird Cinemas at  Accra and West Hills Malls, where celebrated Ghanaian actress and executive producer, Nadia Buari premiered her latest movie, Deranged on Saturday night.

The premiering event had a successful turnout as movie enthusiasts came out in their numbers to watch the movie about  a young girl who falls in love with her teacher. The cinemas were packed with huge crowds by 6:30pm, everyone wanting to see the movie and also catch a moment with their favourite celebrities on the red carpet.

As usual some members of the star-studded cast including Nadia Buari, Zynnell Zuh, Priscilla Opoku Agyeman popularly known as Ahonfe Patri and the crew took turns to take  pictures and engaged with fans and the traditional media  on the red carpet. Other actors who came to support Nadia included Selassie Ibrahim.

“Life and its little things people ignore gave me the inspiration. It’s kind of a way of bringing awareness to certain disorders such as schizophrenia and bipolar disorders that are usually ignored and I love psychological thrillers. So all in one package,” director, Jameel Buari said about the inspiration behind the movie’s storyline.

Deranged is no doubt entertaining. It also silently creates awareness for the need to pay attention to persons with mental ailment. It also stars Ramsey Nouah, Jason E.L Agha, Henry Prempeh and Lisbeth Lopez Acquah among others and also produced by John N. Okwugo.

Bob Diamond of Atlas Mara still interested in Ghana … but denies ever showing interest in ADB

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Bob Diamond

After an unsuccessful move to enter the Ghanaian market some three years ago, American businessman and financial expert Bob Diamond has told the B&FT he has not abandoned his plans, as he considers Ghana a very viable business destination.

“Our plans have always been to invest in 10 to 15 countries, and Ghana has always been one of them,” he told the B&FT in Dubai on the sidelines of the 2017 African Global Business Forum.

“We are always focused, as we just doubled our effort in Nigeria at the Union Bank. And, as I said, one of the countries we are looking to invest in the next few years is Ghana. We think that the emergence of the middle-class, technology – and on the business side production that will see final products being produced – is important,” he said.

“The Vice President [Dr. Bawumia, who is attending the forum] also being pro-jobs and growth for the economy is an opportunity for consolidation, and favourable for us to come into the market in the next two or three years.

“When I was at Barclays, one of our best countries was Ghana because it was an excellent bank in terms of even the number of customers, and also in terms of bottom line revenue. This, I know, makes Ghana a good destination to be in,” he added.

Although he denied ever making a US$50million attempt through one of his firms, Atlas Mara, to have a stake in ADB Bank, Bob Diamond expressed optimism about the resilience of Ghana’s financial market, disclosing his interest to come in to do business in the financial sector.

“I don’t really know ADB. If we were involved, I would never terminate; but I think there were a lot of rumours, and if there was anything that we were involved in I would come to the public with it,” said Mr. Diamond – considered one of the most controversial bankers to emerge from the financial crisis, and the man ousted as boss of Barclays Plc after a direct intervention by the Bank of England.

His denial is in sharp contrast to reports that suggested there was actually a deal, which fell through following resistance by the ADB workers union.

ADB/Atlas Mara MOU

The Agricultural Development Bank (adb) signed a Memorandum of Understanding (MoU) with Atlas Mara Limited for an initial equity investment of US$50million back in 2015.

This was contrary to earlier assertions by the bank that it would not have foreigners, or foreign companies, either participate or own shares in the bank’s quest to raise funds through an Initial Public Offer (IPO).

The MoU, which was signed on June 4, 2014 by the Managing Director of ADB Stephen Kpordzih, and Head of Corporate Development for Atlas Mara Limited, Kenory Dowers, had the ADB’s Board Secretary and vice president of Atlas Mara Limited as witnesses.

Under the terms of the agreement, Atlas Mara was to be given ordinary shares to the tune of 25% as part of the IPO, for which it demanded consent rights or significant influence in board appointments, CEO appointments, adb’s yearly budget, among others.

Meanwhile, Mr. Diamond – sharing his thoughts on regulation in the financial sector in Ghana – told the B&FT that: “I think strong regulation is important, because anybody who wants to invest in any market would want to be sure their investments are safe – and one way of doing that is strong regulation”.

He stressed that he and his firm are very interested in coming into Ghana to do business, and projected that within the next two to three years they are sure to come into the Ghanaian financial market with a higher minimum capital to foster consolidation.

By Norvan Acquah-Hayford l thebftonline.com l Ghana

AshGold chief Kudjoe Fianoo wants retirement package for footballers

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AshantiGold CEO Kudjoe Fianoo believes the death of former Black Stars midfielder Yakubu Abubakari has re-ignited the debate of having a retirement package for ex-footballers.

Fianoo, a former Black Stars team manager, argues that this would help curtail the challenges some football players face when they retire.

He spoke to the Graphic Sports in Tema during the funeral of Abubakari, a former Ajax Amsterdam and Vitesse Arnhem star.

”The lessons we’ve learnt from his (Yakubu) sudden demise is that what plans do we have for players when they retire?,” Fianoo said.

”The stories associated with his (Yakubu’s) last days were not pleasant.

”As administrators, what welfare packages have we put in place for the future upkeep of the players if they should hang their boots?.

”It is natural that not all of them can continue to be in football like coaches, etc.

”Those who cannot continue in football, what plans do we have for them?.”

US jobs growth in October falls short of forecasts

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US employers added 261,000 jobs in October, a solid gain that nevertheless fell short of expectations.

Analysts had expected a sharp increase in hiring, after hurricanes Irma and Harvey depressed payroll growth in September.

Wage growth was also slower than expected, while the number of people not in the labour force rose.

That helped drive the US jobless rate down to 4.1% in October, the lowest rate since 2000.

The US Department of Labor said employment in the food and drink industries had “increased sharply” and had mostly offset a decline in those areas in September when hurricanes devastated areas of Florida and Texas.

Job numbers for September were revised up to a gain of 18,000 after initial estimates suggested that employment fell by 33,000.

JJ Kinahan, chief market strategist at TD Ameritrade, said that “there was a lot to like” in the report, pointing to an increase in jobs in industries such as manufacturing and professional and business services.

But economists were cautious, saying it is hard to tease out the effects of hurricane-related activity.

‘Where is the wage growth?’

The US economy has expanded steadily in recent months, with GDP growing an estimated 3% in the most recent quarter.

At the same time, job growth has slowly decelerated, with the hurricanes sharpening the effect.

Economists said the earlier pace of hiring would be hard to sustain as the supply of people looking for jobs shrank.

But they have been puzzled that wage growth is not stronger, as employers pay more to recruit staff.

“Again it’s a case of strong jobs growth but where is the wage growth?” said Neil Wilson, senior market analyst at ETX Capital.

The Labor Department said average hourly earnings for private sector employees were $26.53, nearly unchanged over the month. Earnings were up 2.4% year-on-year.

Economist Jared Bernstein, former adviser to vice president Joe Biden, said the figures are a sign there is room for unemployment to fall farther.

Others said the large hurricane-related swing in food and hospitality jobs – typically lower paid fields – might be affecting the numbers.

“Let’s come back next month and see how wages might have evened out after the hurricane impacts,” Mr Kinahan wrote.

Although October’s figures fell short of forecasts, Mr Wilson and others said the report does not alter expectations that the US Federal Reserve will raise interest rates in December.

But he added: “Of concern for the Fed is that wage growth has stalled and this raises doubts about the pace of inflation growth…. Without wages going up the Fed is going to struggle to achieve its inflation target.”

IMF cuts Cameroon GDP growth forecast to 3.7 pct for 2017

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Cameroon’s economic growth rate is expected to slip to 3.7 percent this year, down from an earlier estimate of around 4 percent, due to falling oil production, the International Monetary Fund said on Friday.

The IMF approved a $666 million, three-year extended credit facility in June for Cameroon, which has been hit hard by the global decline in crude prices. Economic growth came in at 4.5 percent last year.

In a statement at the end of a 10-day review mission, the IMF said that it had reached an agreement with the government on economic and financial policy ahead of the first review of the programme, which is expected in mid-December.

“The economic programme of the country remains on the right track despite the difficult context. All the quantitative benchmarks established in the programme…have been fulfilled,” said mission head Corinne Delechat.

The government has been forced to concentrate resources on combating Islamist Boko Haram militants along its northwestern border with Nigeria. It has also faced unrest in two predominantly English-speaking provinces since late last year.

The IMF, meanwhile, said that inflation would remain low this year at 0.5 percent.

Parliament approves VAT exemptions on selected medicines

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Parliament’s approval of the Value Added Tax (VAT) exemptions on selected medicines would correspond to a thirty percent (30%) reduction on the NHIS tariffs on medicines and the private sector is also expected to make about thirty percent (30%) savings on the exemptions of VAT on the selected products, a Committee report on Subsidiary legislation has indicated.

According to a report of the Committee on Subsidiary legislation on the VAT (Exemption of Active Ingredients, Selected Inputs and Selected Drugs or pharmaceuticals) (Amendment) Regulations, 2017, the exemption covered 552 Active Pharmaceutical Inputs and excipients and 483 Imported finished Pharmaceutical products.

The report also states that the current exemption list is 352 Active Pharmaceutical Inputs and excipients and 118 Imported finished Pharmaceutical products. The list of Active Pharmaceutical ingredients includes packaging materials such as bottles, caps, drug information leaflet and other inputs.

The imported finished Pharmaceutical products include vaccine sera, immunoglobulins, medicines for HIV, TB, cancer as well as psychotropic.

The report also revealed that the annual reimbursement bill of the NHIA for medicine to service providers is about GH₵800million.

Furthermore, the list of exemption of VAT on the selected products is to give leverage to the local manufacturers to make them competitive as part of efforts targeted at building the local industry.

Available records indicate that currently, 70% of medicines consumed in the country are imported whilst 30% are locally produced. The exemption would therefore give local manufacturers the space for expansion to be able to manufacture for both local consumption and export.

Chairman of the Committee, Mahama Ayariga stated that: “The exemption would reduce the cost of production which would consequently place more money in the hands of pharmaceutical companies.

This is expected to lead to the downward adjustments of prices of the selected pharmaceutical products. The overall objective is to enable the industry to expand and create more job opportunities for the unemployed,” he told Parliament when they approved the VAT exemptions on selected medicines.

Members of the Committee were also informed that the list of medicines to be exempted from VAT include most of the medicines on the list of drugs paid for by the NHIA.

Officials from Health Ministry also informed the Committee that, VAT constitutes about 40% of the total tax element on medicines in the country and this contributes to the high cost of medicines.

The exemptions are expected to support the drive of the Health Ministry to ensure that prices of medicines are contained in a manner that will sustain the Health Insurance and therefore reduce the amounts reimbursed by the Authority.

 

The contagion of incivility …dealing with the canker of rudeness at work

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She has to be the Empress of Rudeness. If there was a National Competition for Impoliteness, that lady was going to walk away with the crown hands down. The entire office is aware of her behaviour and yet no one dares say anything, for fear that she would download a truckload of rudeness their way. Everyone tries as much as possible to stay away from her path. Some senior colleagues have attempted to sit her down and advise her on a need for a change in her behaviour. That is something many of them have regretted up till today. Like we say in our local parlance, she really “gave it to them.” She is now simply untouchable.

If she was rude to only her colleagues, one would have grudgingly accommodated her poor behaviour. But that is not her case. In her world, everyone is fair game. She would raise her voice at the slightest issue to customers and colleagues alike without blinking an eye. She recently got into a heated argument with a customer who threatened to report her to the MD. She dared the customer to go ahead. That’s how far this individual can go. She just could not be bothered with the mantra that the customer is the lifeblood of the business.

If the lady I am describing here seems like someone you know in your office, someone you have met quite recently or someone you have heard of, I am sorry to disappoint you. I am not describing any particular person. The reason why this person might sound like someone you know is because there a lot of these individuals all around. And I must add that they are not only females. Some of the rudest individuals you would encounter in the world of business are males.

No one likes to deal with a rude person, whether as a customer or a colleague. It is such an unpleasant experience that no one wakes up in the morning looking forward to that. However, apart from the feeling of distastefulness, there is another very important reason why any form of rudeness should be eradicated from the workplace.

More than one scientific study has shown that rudeness is contagious. Some have likened rudeness to a virus. When one person catches it in the office, it begins to spread. It is not as if those who begin to show rude behaviour after witnessing something similar, go out of their way to be rude. It just happens. That is why it is important that rudeness is not allowed to rear its head up in the first place.

Published in the January 2016 edition of the Journal of Applied Psychology, one research undertaking, led by Trevor Foulk of the University of Maryland, was actually made up of three separate studies. The study was titled “Catching rudeness is like catching a cold: The contagion effects of low-intensity negative behaviors.” The results were quite alarming, if you ask me.

According to the researchers, “low-intensity negative behaviors like rudeness can be contagious.” They went ahead to state that even a single episode of witnessing a rude behaviour could have an effect on the person. Secondly, and even more disturbing is the assertion that anybody can be a carrier of the rudeness contagion. Finally, it was found that this behaviour could stay inside an individual for as long as even up to a week, thereby affecting future interaction partners.

It was explained that when people experience or even witness rude behaviour, they are more likely to expect it in subsequent encounters. The lead researcher explained that there were centres in our brains which begins to look out for signs of more rudeness, even when there is nothing to suggest that the one is going to be exhibit any rude behaviour. The spiral begins when the individual goes into the next encounter expecting to be treated rudely and as such also begins to put up a rude behaviour.

Another study from the Department of Psychology, Lund University in Sweden buttressed the point that incivility in the work-place had the potential to initiate a negative spiral. Published in BioMed Research International, the study involved more than 2,800 members of the Swedish Hotel and Restaurant Workers Union. The results indicated that instigated incivility was to a large extent caused by colleagues witnessing co-workers acting in a rude manner. In other words, people were more likely to be rude when they witness others being rude.

The quality of a business’ customer service is directly related to the quality of interactions among co-workers. The service among internal customers is a good barometer of the quality that external customers will receive. And if the preceding discussions are anything to go by, then managers, supervisors and even colleagues should ensure that something as seemingly harmless as a rude comment, gesture or behaviour should be instantly dealt with.

If according to the study, anyone can catch the contagion of rudeness, then it stands to reason that even those who might not be expected to have any form of incivility in them can actually exhibit such behaviour unconsciously. An otherwise cool and mild-mannered individual might end up exhibiting behaviour that might be alien to his or her nature. When rudeness is allowed to fester in the organisation, customers tend to suffer.

In one of the studies undertaken by Foulk and his colleagues, participants were asked to enter into a series of negotiations with their assigned partners; some nice, others rude. After a period of time, the partners were changed for each individual. It was worrying to note that when individuals were given new partners to negotiate with, those who at first had encountered the rude partners were themselves rated as rude by their new partners. It seems the rudeness of the earlier partners had seeped into their system. They had caught it like one catches a cold.

For the purposes of our discussions, this means that when co-workers exhibit rude behaviours to each other, the chances are high that the negative behaviour might be replicated towards their customers. I am sure this can easily explain why sometimes people act in ways that may even surprise themselves.

The timing for sighting a rude behaviour is also of great importance. For instance, if an individual is met with rude behaviour early in the morning, the chances of that individual carrying that behaviour for the rest of the day becomes very high. Like one writer wrote, that person would go through the rest of the day with “rude-colored glasses that taint their perceptions of the world.”

It is important to also note that sometimes rudeness could be a sign of some shade of inferiority complex or an insecurity.  Irish author, orator and philosopher, Edmund Burke was right when he said “Rudeness is the weak man’s imitation of strength.” Such an individual needs more than a query or reprimand. A counselling session might do the one some good. The one must also be made to appreciate the extent his or her negative behaviours is capable of going.

I have opined on this platform before that sometimes it is the very little things that make the biggest difference in life. Customer service is no different as it is a reflection of life. We might think of a single rude act as nothing serious but if we are to consider its ripple effect throughout the organisation, we would realise that there is nothing little about a single rude remark, act or behaviour. Supervisors, unit heads, managers and business leaders must always be on the lookout for any potential acts or remarks smacking of incivility and nip the situation in the bud. After all, in a world where we find ourselves closer to each other than we have ever been, the last thing one wants is to be infected by a contagion of incivility. Too many people might catch it.

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