TITLE:
The Ideal Corporate Governance Model for State Owned Enterprises in Zambia
AUTHORS:
Sabina Luputa, Jason Mwanza
KEYWORDS:
Corporate Governance, Model, State Owned Enterprises, Zambia
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.10 No.11,
October
24,
2022
ABSTRACT: Purpose: Corporate governance concerns many problems of
contemporary corporations and is a
dynamically developing discipline of organisation and management science of
significant practical importance. The purpose of this study was to explore the
current state of corporate governance in these state owned enterprises with a
view to develop an ideal corporate governance model for State Owned
Enterprises in Zambia. Design/Methodology/Approach: This paper
was part of a larger, mixed-method study which employed qualitative measures
(cognitive interviews with key informants and reviewing literature on corporate
governance models and theories used in other countries). We employed Martin
Heidegger’s existential phenomenology as the underpinning philosophy and
methods for this study. Findings: The findings indicate that state owned enterprises do not have good
corporate governance structures and this is compounded by a complicated
legal framework in the country. Major shareholders have more powers in
determining board composition and even how the enterprise ought to operate.
There are impositions on state owned enterprises where owners hardly finance
state owned enterprises and impose public service obligations. In many ways,
owners impose restrictions. Research Limitations/Implications: Understanding of the ways in which
shareholders are determining the current corporate governance practices
could help to advance standard practices and a context specific framework.
Methods to ensure the application of cooperate governance should also be
explored further. Originality/Value: This is one of the first studies to
provide a corporate governance framework for state owned enterprises in Zambia.