A study of the efficacy of corporate governance frameworks in state-owned enterprises (SOEs): A case study of Zimbabwe Revenue Authority (ZIMRA)

Abstract

The broad objective of the study was to assess the efficacy of corporate governance frameworks in State- Owned Enterprises (SOEs) in Zimbabwe against a backdrop of a strong view that many state owned enterprises lack sound structures of good corporate governance. The poor administration of state owned enterprises, dismal financial and operating performance, corporate fraud, corruption, inefficiency and ineffectiveness, lack of external capital inflows and many other unethical and immoral conducts in state owned enterprises are indications which have been ascribed to a lack of good corporate governance structures.

The research study findings showed that good corporate governance has implications for organisation or company behaviour towards shareholders, employees, banks, customers and society. Corporate governance provides adequate information pertaining to the developments taking place in the company or organisation as a result enhancing organisational performance.The research findings also showed clearly that the Board of Directors should establish the values of the company or organisation in support of the vision and the mission statement. It is the responsibility of the board to establish and ensure communication of principles and standards of ethical business practice for the company or organisation in support of such values.

The research study gives fair discussion of the principles and mechanisms of corporate governance. The study developed a framework of good corporate governance based on the following key corporate governance structures; composition and selection procedures of the board, the roles, responsibilities and performance of the board and malpractice focusing on risk, internal controls, monitoring, disclosure and transparency. Using statistical tools and processes, the study concluded that good corporate governance in key to the performance of State Owned Enterprises. The findings of this research study will benefit the organization immensely in dealing with corporate governance issues and specifically malpractices and corruption.