Abstract
During the last three decades, corporate governance has received growing attention at both the national and international levels. This is mainly due to the increasing corporate financial scandals and the growing acknowledgement that improved corporate governance was crucial for economic growth and development. In Ghana, the enactment of the corporate governance code (2002) by the Securities and Exchange Commission (SEC) resulted in numerous interpretations regarding codes of best practices. However, due to unethical governance activities and decisions, compliance with the codes and enforcement by the SEC and other regulators has become an issue of growing concern. This chapter presents the ethical dimensions of corporate governance practice in Ghana. Using a constructivist grounded theory methodology the study develops a substantive theory of corporate governance which identifies the dominant influence of national culture on corporate governance practices. In the context of Ghana, corporate governance is socially constructed, thus understanding the behaviour of the board of directors is vital for comprehending how corporate governance is practised and serves as a useful guide to investors and corporations both locally and internationally.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abor, A., & Adjasi, C. K. D. (2007). Corporate governance and the small and medium enterprises sector: Theory and implications. Corporate Governance, 7(2), 111–122.
Adda, E., & Hinson, R. (2006). Exploring the legal framework for business and ethical practices in Ghana. Journal of Legal, Ethical and Regulatory Issues, 9(2), 69–80.
Adegbite, O. G. (2012). Corporate governance developments in Ghana: The past, the present and the future. Public and Municipal Finance, 1(2), 74–77.
Amao, O. O., & Amaeshi, K. (2007). Galvanising shareholder activism: A prerequisite for effective corporate governance and accountability in Nigeria. Journal of Business Ethics, 82(1), 119–130.
American Evaluation Association. (2004). Guiding principles for evaluators [Online]. http://www.eval.org/Publications/GuidingPrinciples.asp. Accessed 16 Feb 2010.
Ardayfio-Schandorf, E. (1994). Family and Development in Ghana. Accra: University Press.
Baah, Y. A. (2007). Organizing the informal economy: Experience and lessons from Asia and Africa. Accra: Ghana TUC, LOFTF (Denmark) Project.
Banking Law. (1989). PNDCL 225. Official Gazette of the Republic of Ghana. Accra.
Basu, K. (2001). The role of norms and law in economics: An essay in political economy. In J. W. Scott & D. Keates (Eds.), Schools of thought: TwentyFive years of interpretive social science (pp. 154–178). California: Princeton University Press.
Boadu, M., & Sorour, M. K. (2015). Utilizing grounded theory in business doctoral research: Guidance on the research design, procedures, and challenges. International Journal of Doctoral Studies, 10(9). ISSN: 1556–8881.
Bovens, M. (2007). Analysing and assessing accountability: A conceptual framework. European Law Journal, 13(4), 447–468.
Bruner, C. (2011). Corporate governance reform in a time of crisis. Journal of Corporation Law, 36, 309–341.
Business Dictionary Online. (2011). http://www.businessdictionary.com/
Carasco, E., & Singh, J. (2003). The content and focus of the codes of ethics of the world’s largest transnational corporations. Business and Society Review, 108(1), 71–94.
Carcio, W. (2004). Board governance: A social systems perspective. Academy of Management Executive, 18(100), 97–100.
Collis, J., & Hussey, R. (2003). Business research: A practical guide for undergraduate and postgraduate students (2nd ed.). London: Palgrave Macmillan.
Corbin, J. A. and Strauss, A. (2008) Basics of qualitative research. 3rd edn. Thousand Oaks, CA: Sage Publication.
Companies Code. (1963). Act 179. Ghana.
De George, R. T. (2000). Business ethics. Upper Saddle River, NJ: Prentice Hall.
De Wit, B., & Meyer, R. (1998). Strategy: Process, content, context (2nd ed.). London: Thompson Learning.
De Wit, R., & Meyer, R. (2004). Strategy: Process, content, context—an international perspective (3rd ed.). London: Thompson Learning.
Djankov, S., La Porta, R., Lopez de Silanes, F., & Shleifer, A. (2008). The law and economics of self-dealing. Journal of Financial Economics, 88(3), 430–465.
Dyck, A., & Zingales, L. (2004). Private benefits of control: An international comparison. Journal of Finance, 59(2), 537–600.
Financial Reporting Council. (2011). Guidance on board effectiveness [Online]. http://www.frc.org.uk/Our-Work/Publications/Corporate-Governance/Guidance-on-Board-Effectiveness.aspx. Accessed 25 Feb 2013.
Gibson, D. E., & Barsade, S. G. (2003). Managing organizational culture change: The case of long-term care. Journal of Social Work in Long-Term Care, 2(1), 11–34 [Online]. doi:10.1300/J181v02n01_02. Accessed 2 Feb 2013.
Giurca, V. L. (2008). Corporate governance in developing and emerging countries: The case of Romania (MPRA Paper, No. 10998) [Online]. http://mpra.ub.unimuenchen.de/10998/. Accessed 10 Feb 2012.
Graham, G., & Thomas, K. (2008). Building knowledge: Developing a grounded theory of knowledge management for construction (p. 116). Waterford Institute of Technology: Waterford.
Graham, J., Amos, B., & Plumptre, T. (2003, June 30). Principles for good governance in the 21st century Ottawa. Institute on Governance, The Fifth World Parks Congress in Durban, South Africa [online]. http://www.iog.ca/publications/pa_governance2.pdf. Accessed 12 Sept 2009.
Green, T. A. (1997). Folklore: An encyclopedia of beliefs, customs, tales, music, and art (pp. 80–1210). ABC-CLIO.
Gregory, C. A. (1982). Gifts and commodities. London: Academic Press.
Greif, A. (2006). Institutions and the path to the modern economy: Lessons from medieval trade. Cambridge University Press. ISBN: 978-0-521-48044-4. Accessed 9 Dec 2012.
Hendrick, J. (2000). Law and ethics in nursing and health care. Cheltenham: Nelson Thornes.
Hofstede, G. (2001). Culture’s consequences (2nd ed.). Thousand Oaks, CA: Sage.
Holme, L., & Watts, R. (2000). Making good business sense (pp. 1–4) [Online]. www.Mallenbaker.net/csr/CSRfiles.definition.html. Accessed 15 Nov 2009.
Huse, M. (2005). Accountability and creating accountability: A framework for exploring behavioural perspectives of corporate governance. British Journal of Management, 16, 65–79.
Institute of Directors (2010): Guidelines on Corporate Governance Practices in Ghana, Accra.
Internal Revenue (Amendment) (No. 2) Act (2006). (Act 710)6, Ghana.
Jackson, A. C., & Thomas, S. A. (2005). Client’s perspectives of, and experiences with, selected Australian problem gambling services. Journal of Gambling Issues. www.camh.net/egambling/issue14/pdf/jgi_14_jackson.pdf. Accessed 1 Oct 2010.
Klein, S. B., Astrachan, J. H., & Smyrnios, K. X. (2005). The F-PEC scale of family influence: Construction, validation, and further implication for theory. Entrepreneurship Theory and Practice, 29(3), 321–339.
Klomegah, R. (1997). Socio-economic characteristics of Ghanaian women in polygynous marriages. Journal of Comparative Family Studies, 28, 73–88.
Kotler, P. (1991). Marketing management: Analysis, planning, implementation and control (7th ed.). Englewood Cliffs, NJ: Prentice Hall.
Kotler, P., & Lee, N. (2005). Corporate social responsibility: Doing the most good for your company and your cause. Hoboken, NJ: John Wiley.
Kyereboah-Coleman, A., & Biekpe, N. (2005).Corporate governance and the performance of microfinance institutions (MFIs) in Ghana (Working paper No. 4330–05). Legon: UGBS.
Li, J., & Harrison, R. (2008). Corporate governance and national culture: A multi-country study. Corporate Governance, 8(5), 607–621 [Online]. doi:10.1108/14720700810913278. Accessed 21 Mar 2013.
Licht, A. C., Schmidt, G., & Schwartz, S. H. (2005). Culture, law, and corporate governance. International Review of Law and Economics, 25, 229–255.
Mauss, M. (1954). The gift. London: Routledge and Kegan Paul.
Mauss, M. (2002). The gift: The form and reason for exchange in archaic societies. Abingdon: Routledge.
Muenjohn, N., & Armstrong, A. (2008). Evaluating the structural validity of the Multifactor Leadership questionnaire (MLQ), capturing the leadership factor in transformational-transactional leadership. Contemporary Management Research, 4(1), 3–14.
Mysterud, I., Drevon, T., & Slagsvold, T. (2006). An evolutionary interpretation of gift giving behavior in modern Norwegian society. Evolutionary Psychology, 4, 406–425.
Nwanji, T. I. (2006). Ethical implications of corporate governance a deontological and teleological approach: Applying grounded theory. Cambridge and Chelmsford: Anglia Ruskin University.
Odotei, K., & Aweodoba, A. (Eds.). (2006). Chieftaincy in Ghana: Culture governance and development (p. 11). Legon: Sub-Saharan.
OECD. (2004). Corporate governance principles: OECD—Organisation for Economic Co-operation and Development [Online]. Paris: OECD. www.oecd.com. Accessed 18 Mar 2010.
Ofori, E. G. (2009). Taxation of the informal sector in Ghana: A critical examination. A dissertation presented to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology, in partial fulfilments for the degree of Commonwealth Executive Master of Business Administration (CEMBA).
Oghojafor, B., George, O., & Owoyemi, O. (2012). Corporate governance and national culture are Siamese twins: The case of Cadbury (Nigeria) Plc. International Journal of Business and Social Science, 3(15), 270.
Okike, E. N. M. (2007). Corporate governance in Nigeria: The status quo. Corporate Governance, 15(2), 173–193.
Prempeh, H. K. (2002a). The persistent corporate governance deficit in the Ghanaian public sector: An agenda for reform. Ghana: Ghana Center for Democratic Development, CDD.
Prempeh, H. K. (2002b). Reforming corporate governance in Ghana - Part 1: The private sector. CDD Briefing Paper, 3(4), 1–7.
Report on the Observance of Standards and Codes (ROSC). (2005). World Bank: Corporate governance country assessment (pp. 2–8). Ghana: The World Bank.
Ruth, J. A., Cele, C. O., & Frederic, F. B. (1999). Gift receipt and the reformulation of interpersonal relationships. Journal of Consumer Research, 25(3), 385–402.
Schein, E. M. (2004). Organizational culture and leadership (3rd ed.). San Francisco, CA: Jossy-Bass.
Schmidt, S. L., & Brauer, M. (2006). Strategic governance: How to assess board effectiveness in guiding strategy execution. Strategic Governance, 14, 13–22.
Securities and Exchange Commission. (2009). Corporate Governance, Guidelines on Best Practice. Ghana.
Securities Industry Law. (1993). PNDCL 333.
Shils, E. (1971). Tradition. Comparative Studies in Society and History, 13, 122–159.
Stiglitz, J. E. (1985). Credit markets and the Control of Capital. Journal of Money, Credit, and Banking, 17(1), 133–152.
Stoker, G. (1998). Governance as theory: Five propositions. International Social Science Journal, 50, 17–28.
Strauss, A., & Corbin, J. (1990). Basics of qualitative research: Grounded theory procedures and techniques (pp. 12–145). London: Sage.
Strauss, A., & Corbin, J. (1994). Grounded theory methodology: An overview. In Denzin, N.K., & Lincoln, Y. S. (eds). Handbook of Qualitative Research. London: Sage Publications.
Strauss, A., & Corbin, J. (1998). Basics of qualitative research: Techniques and procedures for developing grounded theory (2nd ed.). Thousand Oaks, CA: Sage.
Takatera, S., & Yamamoto, M. (1987). The cultural significance of accounting in Japan. Seminar on Accounting and Culture, European Institute for Advanced Studies in Management, Brussels.
Tsamenyi, M., Enninful-Adu, E., & Onumah, J. (2007). Disclosure and corporate governance in developing countries: Evidence from Ghana. Managerial Auditing Journal, 22(3), 319–334.
World Bank. (2004). Corporate governance country assessment: Nigeria. Report on the observance of standards and codes (ROSC). Washington, DC: World Bank–IMF.
World Bank. (2005). Capacity building in Africa: An OED evaluation of World Bank support. Washington, DC: World Bank Operations Evaluations Department.
Yücel, R., Elibol, H., & Dağdelen, O. (2009). Globalization and international marketing ethics problems. International Research Journal of Finance and Economics, 26, 94–104.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 2016 The Author(s)
About this chapter
Cite this chapter
Boadu, M. (2016). Ethical Dimensions of Corporate Governance Practice in Ghana: Developing a Theoretical Perspective. In: Howell, K., Sorour, M. (eds) Corporate Governance in Africa. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-56700-0_5
Download citation
DOI: https://doi.org/10.1057/978-1-137-56700-0_5
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-56699-7
Online ISBN: 978-1-137-56700-0
eBook Packages: Business and ManagementBusiness and Management (R0)