What’s in a King? Unveiling the pragmatic micro-perceived value attributes of a fulfilling corporate governance code for responsible sustainable development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andani Thakhathi ◽  
Derick De Jongh ◽  
Phumzile Langeni
Keyword(s):  
Corporate Governance ◽  
South African ◽  
Good Governance ◽  
Perceived Value ◽  
Recent Contribution ◽  
Content Type ◽  
Corporate Governance Code ◽  
Global Responsibility ◽  
Governance Practice ◽  
Corporate Governance Practice

Purpose A recent contribution entitled Global Responsibility and the King Reports was made to the literature that represents a significant advancement in the understanding of how standards of good governance are practised. The corpus revealed key insights about macro-institutional governance regimes, yet, extraordinarily little about meso-organisational and even less so, micro-individual corporate governance practice. This study aims to shed light on the micro-individual level of corporate governance practice which has remained obscured by drawing pragmatic insights from the landmark South African King Code experience that may be applied to other governance jurisdictions for global organisational responsibility. Design/methodology/approach To unearth micro-individual corporate governance code practices, a phenomenological exploration of corporate governance practitioners’ (CGPs) perceptions was conducted. Qualitative semi-structured interviews with senior board members of securities-exchange listed companies were conducted with 10 directors of leading multinational South African corporations listed on Africa’s largest formal financial market; the Johannesburg Stock Exchange. Recursive analysis of the qualitative data revealed key attributes that render a corporate governance code “fulfilling” as a consequence of being perceived as subjectively valuable by practitioners who are the ultimate end-users of the King Codes for advancing good corporate governance practice in each of their respective companies. Findings Two categories of fulfilling micro-perceived value attributes (MPVAs) of corporate governance codes emerged, namely, internal and external MPVAs. The three internal MPVAs are, namely, (I1) Meaningful innovation, (I2) Ethical pragmatism and (I3) Cultural transformation. The three external MPVAs are, namely, (E1) Governance legitimacy, (E2) Societal licencing and (E3) Risk mitigation. From these six attributes, two testable corporate governance code development propositions are advanced, namely, (P1) a corporate governance code with a higher constitution of MPVAs will fulfil CGPs more than one with less. (P2) A more fulfilling corporate governance code will enjoy higher adoption, application and/or compliance rates. Originality/value Illumining the subjective experiential perceptions that constitute the fulfilment of a corporate governance code deepens the pragmatic understanding of the “demand-side” or consumption of such codes in practice. Knowing these fulfilling MPVAs may also result in the development of codes that enjoy wider adoption and compliance rates thereby enhancing global corporate responsibility pragmatism through enhanced good governance. This study sheds light on the nexus where normative corporate governance principles and the enactment thereof meet at the coalface of organisational activity with an emphasis on those attributes that render them valuable to practitioners.

Business students’ perceptions of corporate governance best practices

2016 ◽  
Vol 16 (2) ◽  
pp. 361-376 ◽  
Author(s):  
Kathryn M. Zuckweiler ◽  
Kirsten M. Rosacker ◽  
Suzanne K. Hayes
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
College Graduates ◽  
Business Students ◽  
School Curriculum ◽  
Strategic Human Resource Management ◽  
Content Type ◽  
Governance Practice ◽  
Corporate Governance Practice

Purpose This paper aims to develop a better understanding of business students' perceptions of the relative importance of corporate governance best practices within the context of major area of study and compare student rankings of corporate governance best practices to those of working professionals. Design/methodology/approach Using a previously published survey, data were collected from business students at two Midwestern US universities and analyzed using factor analysis. Findings This research demonstrated that students rank strategic human resource management as the most important corporate governance practice, matching the perceptions of professionals. Accounting majors report significantly greater understanding of corporate governance, the importance of corporate governance to business and the role of understanding corporate governance in their careers as compared to management majors. Research limitations/implications This study is limited by the inclusion of business students at only two US universities. Further studies should be conducted to better understand the similarities and differences between students and professionals and accounting and management majors in their perceptions of corporate governance best practices. Practical implications Managers can use these findings to enhance the training recent college graduates receive on corporate governance topics. Business schools can use these findings to evaluate ways to embed corporate governance throughout the curriculum. Originality/Value This research highlights gaps in current business school curriculum coverage of corporate governance best practices. It compares and contrasts students' and professionals' perceptions of best practices and offers suggestions for managers and educators.

Securities and Exchange Commission of Nigeria's Draft Revised Code of Corporate Governance: An Appraisal

2011 ◽  
Vol 55 (2) ◽  
pp. 280-299 ◽  
Author(s):  
Nat Ofo
Keyword(s):  
Corporate Governance ◽  
Securities And Exchange Commission ◽  
Final Version ◽  
Draft Code ◽  
Corporate Governance Code ◽  
Good Corporate Governance ◽  
Governance Practice ◽  
Corporate Governance Practice ◽  
Code Of Corporate Governance

AbstractIn furtherance of its role to entrench good corporate governance practice in Nigeria, the Securities and Exchange Commission of Nigeria published a draft revised Code of Corporate Governance. It is intended that this revised code will replace the country's current corporate governance code which came into force in 2003. This article sets out a thorough examination of the draft code with a view to appraising whether the final version of the code will be well-suited to meet its desired goals. Consequently, some of its provisions have been critically reviewed while others have been acclaimed. Furthermore, the article draws attention to the increased responsibility of the Securities and Exchange Commission in establishing good corporate governance practice and makes extensive suggestions in this regard.

scholarly journals Speaking right: HRDs role in mediating good boardroom conversations

2019 ◽  
Vol 44 (2/3) ◽  
pp. 259-277
Author(s):  
Nick Beech ◽  
Jeff Gold ◽  
Susan Beech ◽  
Tricia Auty
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Human Resource Development ◽  
Good Governance ◽  
Communicative Action ◽  
Good Practice ◽  
Content Type ◽  
Governance Practice ◽  
Hrd Professionals ◽  
The Impact

Purpose This paper aims to explore the impact discourse has on decision making practices within the boardroom and considers how personal proficiency in micro-language use can enhance an individual’s personal efficacy in influencing boardroom decisions. The work uses Habermas’ theory of communicative action to critique board talk, highlighting the need for greater understanding of the power of everyday taken for granted talk in strategy shaping. It illuminates the contribution that human resource development (HRD) professionals can make to the management of such behaviour and minimising dysfunctional behaviour and enabling effective boardroom practices. Design/methodology/approach Traditional governance theory from a business and organisational perspectives are provided before considering the boardroom environment and HRD’s role. The authors undertake ethnographic research supported by conversation analysis to explore how directors use talk-based interpersonal routines to influence boardroom processes and enact collective decision making. The authors provide one extract of directors’ talk to illustrate the process and demonstrate what the data “looks like” and the insights it holds. Findings The analysis suggests that the established underlying assumptions and rationale ideologies of corporate governance are misplaced and to understand the workings of corporate governance HRD academics and professionals need to gain deeper insight into the employment of talk within boards. Armed with such insights HRD professionals can become more effective in developing strategies to address dysfunctional leadership and promote good governance practice throughout their organisation. Social implications The work raises a call for HRD to embrace a societal mediation role to help boards to become a catalyst for setting good practice which is strategically aligned throughout the organisation. Such roles require a more dialogical, strategic and critical approach to HRD, and professionals and academics take a more holistic approach to leadership development. Originality/value The paper considers the role of the development of HRD interventions that both help individuals to work more effectively within a boardroom environment and support development to shape a boardroom culture that promotes effective governance practice by influencing boardroom practice thereby promoting strong governance and broad social compliance throughout the organisation.

The myth of the “good governance code”: an analysis of the relationship between ownership structure and the comply-or-explain disclosure

2018 ◽  
Vol 18 (5) ◽  
pp. 809-838 ◽  
Author(s):  
Luigi Lepore ◽  
Sabrina Pisano ◽  
Assunta Di Vaio ◽  
Federico Alvino
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Good Governance ◽  
Ordinary Least Squares ◽  
Ownership Concentration ◽  
Equal Distribution ◽  
Content Type ◽  
Corporate Governance Code ◽  
The Relationship ◽  
Comply Or Explain

PurposeThe purpose of this paper is twofold: first, to assess the degree of disclosure about compliance with corporate governance code and the explanations provided by Italian firms and second, to analyze the relationships between this disclosure and different variables of ownership structure.Design/methodology/approachThe sample was composed of 75 non-financial companies listed in Italy in 2016. Content analysis of the corporate governance statement and ordinary least squares (OLS) multiple regression models were used to test the hypotheses.FindingsCompanies tended to comply with the corporate governance code and to disclose this information, but when they decided to not comply, they did not provide adequate explanations. Findings revealed a negative relation between ownership concentration and the disclosure analyzed. Results also highlight that a more equal distribution of shares among larger shareholders is beneficial for disclosure. Moreover, the presence of a dominant financial shareholder at a high level of ownership concentration creates inefficiency of the degree of adherence to the comply-or-explain principle.Originality/valueThis study examines in depth the underexplored issue of “explanation” and exceeds the issue of ownership concentration, which has already been examined extensively, raising the issues of counterweight power and shareholders’ identities, which remain underexplored. In this way, results presented contribute to explaining some causes of the diverse findings that research has found about the relationship between ownership concentration and voluntary disclosure, demonstrating the importance of counterweight power and largest shareholder’s identity. Consequently, when self-regulating initiatives are designed and implemented, legislators, regulators and managers should not ignore the characteristics of the firms’ ownership structure.

Corporate governance practice in the context of the political situation in South Africa over the last 25 years

2020 ◽  
Vol 11 (2) ◽  
pp. 127-137
Author(s):  
Suresh Parbhoo Kana
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Institutional Culture ◽  
Historical Narrative ◽  
Business And Society ◽  
Content Type ◽  
Social Interests ◽  
Strategic Assets ◽  
Governance Practice ◽  
Corporate Governance Practice

Purpose This study aims to demonstrate, with reference to developments in the four King Reports on Corporate Governance for South Africa, that institutional culture should be governed with the same rigour applied to other strategic assets to align the pluralistic interests of government, business and society. Design/methodology/approach Historical narrative and analysis. Findings Institutional culture should be governed with the same rigour and veracity as more traditional assets to align organisational purpose with political and social interests. Originality/value This is part of a special issue that looks at the contribution of the King Reports to governance globally.

scholarly journals Institutional Contradictions of the French state as Shareholder

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carine Girard ◽  
Stephen Gates
Keyword(s):  
Corporate Governance ◽  
Shareholder Activism ◽  
State Ownership ◽  
The State ◽  
Extensive Literature ◽  
Minority Shareholders ◽  
Content Type ◽  
Legislative Proposals ◽  
Governance Practice ◽  
Corporate Governance Practice

Purpose This paper aims to demonstrate that state shareholders are confronted with contradictory logics leading to institutional contradictions that activist shareholders can exploit. The competing logics of the state as shareholder and their impact on corporate governance and shareholder activism offer fertile grounds for research advances in Coordinated Market Economies (CMEs). Design/methodology/approach Through an extensive literature review of state ownership, institutional contradictions and shareholder activism, this paper analyzes two case studies involving the French State as shareholder. Findings In the French context, these two cases illustrate how institutional contradictions result in opportunities for shareholder activism. By focusing on the institutional contradictions of the state shareholder, this investigation suggests a need for experimental research to observe how shareholder activists adapt to each institutional change in CMEs. This experimentation can help policymakers to avoid creating additional conditions that shareholder activists can exploit. Research limitations/implications This focuses only on France and its state shareholdings. To generalize results, studies of other CMEs and state shareholders are needed. Practical implications Policymakers should consider all legislative proposals for their potential to deviate from corporate governance practice by experimenting with them in a laboratory setting. Shareholder activists can compare state shareholders’ actions against the state’s legislation to emphasize institutional contradictions that counter minority shareholders’ rights. Originality/value This research is the first to analyze how the state as shareholder can exploit its competing logics to resist against shareholder activism and support management or to become itself a shareholder activist.

Understanding decoupling in response to corporate governance reform pressures

2015 ◽  
Vol 23 (4) ◽  
pp. 369-382 ◽  
Author(s):  
Mario Krenn
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Good Governance ◽  
Regulatory Change ◽  
Compliance Monitoring ◽  
Governance Reform ◽  
Firm Level ◽  
Content Type ◽  
Good Corporate Governance ◽  
Actual Use

Purpose – The purpose of this article is to explain under what circumstances firm-level adoption of codes of good corporate governance will more likely be superficial rather than substantive in nature. The article contains lessons for any agency or country that attempts to implement deep and lasting changes in corporate governance via codes of good corporate governance. Design/methodology/approach – The article reviews the literature on compliance with codes of good corporate governance and develops a conceptual model to explain why some firms that have formally adopted a code of good governance decouple this policy from its actual use. Findings – Decoupling in response to the issuance of codes of good corporate governance will be more attractive to firms and also more sustainable under the following conditions: firms’ compliance costs are relatively high firms’ costs of outright and visible non-compliance are relatively high and outsiders’ compliance monitoring costs are relatively high. Originality/value – The article contributes to the debate on compliance and convergence and provides policymakers with a conceptual framework for assessing the likelihood of successful regulatory change in corporate governance.

Is internal and external mechanism of governance enriching the performance of the banking sector of Pakistan?

2017 ◽  
Vol 17 (4) ◽  
pp. 629-642 ◽  
Author(s):  
Sundas Sohail ◽  
Farhat Rasul ◽  
Ummara Fatima
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Good Governance ◽  
Random Effect ◽  
Random Effect Model ◽  
General Meeting ◽  
Governance Structure ◽  
Board Structure ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to explore how governance mechanisms (internal and external) enhance the performance of the return on asset (ROA), return on equity (ROE), earning per share (EPS) and dividend payout ratios (DP) of the banks of Pakistan. The study incorporates not only the internal factors of governance (board size, out-ratio, annual general meeting, managerial ownership, institutional ownership, block holder stock ownership and financial transparency) but also the external factors (legal infrastructure and protection of minority shareholders, and the market for corporate control). Design/methodology/approach The sample size of the study consists of 30 banks (public, private and specialized) listed at the Pakistan Stock Exchange (PSE) for the period 2008-2014. The panel data techniques (fixed or random effect model) have been used for the empirical analysis after verification by Hausman (1978) test. Findings The results revealed that not only do the internal mechanisms of governance enhance the performance of the banking sector of Pakistan but external governance also plays a substantial role in enriching the performance. The findings conclude that for a good governance structure, both internal and external mechanisms are equally important, to accelerate the performance of the banking sector. Research limitations/implications Internal and external mechanisms of corporate governance can also be checked by adding some more variables (ownership i.e. foreign, female and family as internal and auditor as external), but they are not added in this work due to data unavailability. Practical implications The study contributes to the literature and could be useful for the policy makers who need to force banks to mandate codes of governance through which they can create an efficient board structure and augment the performance. The investments from different forms of ownership can be accelerated if they follow the codes properly. Social implications The study facilitates the bankers in incorporating sound codes of corporate governance to enhance the performance of the banks. Originality/value This work is unique as no one has explored the impact of external mechanism of governance on the performance of the banking sector of Pakistan.

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