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Corporate Governance in Zimbabwe's Public Sector

Corporate governance is a term that has been derived from the Latin words "gubarne" and "gubernator," both of which mean "to guide a sheep," according to Okene (2010). So that's how an organization is managed and controlled in the modern era. Chen (2022) defines corporate governance as the set of rules, practices, and processes that are adopted in directing and controlling a firm. Chen (2022) added that good corporate governance creates transparent rules and controls, guides leadership, and reduces the risk of financial loss, waste, risks, and corruption.

According to Chimbari (2017), corporate governance in the public sector is rapidly becoming a topical issue in developing countries due to the critical role it plays in creating and maintaining stable economic systems. Chimbari (2017) added that the recent wave of high-profile business scandals that have rocked Zimbabwe's state-owned enterprises has been attributed to poor corporate governance practices.  In support of Chimbari (2017), Foya et al (2022) asserts that Zimbabwe has witnessed the closure of many organisations, including banks over the past two decades and this can be attributed in part to poor corporate governance practices. In addition, according to Sifile et al. (2014), the Zimbabwe Institute of Directors' leadership actively participated in the promotion of governance issues by developing and enacting the Zimbabwe Code of Corporate Governance, or ZIMCODE.

Baker and Anderson (2010) cited in Drogalas et al (2018) defines corporate governance as processes and structures that exist among shareholders, top management, board of directors and other stakeholders, and it also includes roles of effective management and governance, as well as performance improvement and ensuring accountability in organisations. According to Mudashiru et al. (2014), individual managers and directors who haven't received the proper training in the concepts of corporate governance are more likely to falsify financial accounts and also engage in other unethical business practices. According to Schoeberlein (2020), good governance has been identified as crucial in achieving sustainable development and inclusive growth, making governments accountable to their citizens, and successfully addressing corruption-related issues. Adedokun et al. (2016) added that effective and timely goal-achieving is made possible by excellent corporate governance in organizations. In support of Adedokun et al (2016) and Schoeberlein (2020), Chimbari (2017) concluded that creating a suitable corporate governance system for the public sector is a top priority for Zimbabwe's economic development. This was due to the lack of good corporate governance that was found by various researches and which had led to corporate governance reforms and formation of audit committees like what has happened in Zimbabwe’ public sector.

The formation of internal audit functions and functions in Zimbabwe was anchored in the Zimbabwe Corporate Governance Code (ZIMCODE, 2015), which emphasizes the significance of these essential principles in the country's economic governance. Schneider (2010) cited in Abdullah et al. (2018) supported that audit managers and committees ought to participate actively in evaluating the competence of internal audit resources, such as qualifications and continuous education. Al-Baidhani (2016) stated that audit committee's activities and responsibilities include overseeing and monitoring the organization's overall financial performance, particularly the preparation of financial statements, managerial financial reports such as cost and budgeting reports, the effectiveness and efficiency of internal control, and the performance of both internal and external auditors. These committees are hoped to play a major role in unearthing corruption and enhancing good corporate governance.

Most African countries have put forward reforms to their governance frameworks, most often as part of national development plans and also as part of anti-corruption strategies or efforts to strengthen natural resource governance (Schoeberlein, 2020). In a past study on the structures of corporate governance carried out in Nigeria, Mudashiru et al. (2014) made the case that in order for organizations to demonstrate the higher levels of competitiveness, accountability and transparency, organisations must make sure that the foundation for their managerial control is based on a sound set of corporate governance mechanisms.

According to Foya (2022), a system of corporate governance incorporates transparency, fairness, independence, accountability, responsibility, integrity, and social responsibility in business. The former Zimbabwe's Reserve Bank Governor, Gono (2008) also supported the idea that good corporate governance and integrity in business are the bedrock and foundation for sustainable economic and social prosperity. Wadie (2013) cited in Chimbari (2017) supported that effective governance in the public sector is essential in ensuring the efficient use of resources, strengthening accountability for the stewardship of national resources, and improving administration and service delivery. These views by the researches have shown that corporate governance is a key to transparency and integrity in business.