CORPORATE GOVERNANCE AND ITS IMPACT ON THE MANAGEMENT OF AN ORGANIZATION ( A CASE STUDY OF AIRTEL, UYO MAIN OFFICE)

CORPORATE GOVERNANCE AND ITS IMPACT ON THE MANAGEMENT OF AN ORGANIZATION

Concept of Corporate Governance
Corporate governance refers to the relationship that exists between the different participants and defining the direction and performance of a corporate firm. The following bodies are the main actors in corporate governance. The Chief Executive Officers (Management), the Board of Directors and Shareholders (Kesho, 2008).
Similarly, Okoh (2009) opined that corporate governance is a number of processes, customs, policies, laws and institutions which have impact on the way a company is controlled. Corporate governance involves a number of inter-related and mutually supportive components. These components centre on creating transparency and accountability (Shore & Wright 2004) Furthermore, these intended outcomes are, aimed at mitigating principal-agent problems and promoting the long term interests of stakeholders (Gilardi 2001). Corporate governance is a multifaceted concept that centres on notions of organisational accountability and responsibility (Williamson 1998, 2005). Governance implies that institutional structures (i.e. norms, values and assumptions) whether formal (e.g. laws and regulations) or informal (e.g.cultural values) create constraints on the behaviour of a given party (Gayle, Tewarie & White 2003). Such constraints are implied to be in the interests not just of the party under direct governance, but of the parties who, by virtue of their imposition of governance mechanisms, have an interest in the governed party. Governance necessitates the formulation, monitoring and enforcement of institutional structures by third parties, as well as the adherence to such institutional structures by individuals purported, subject to such institutional structures (Rutherford, BA 1983).
The issue of corporate governance is thereby replete with complicated issues concerning ideal institutional mechanisms, effective monitoring and the balancing of competing interests of
stakeholders (both internal and external to the corporate governance structure) (Williamson 2005). Today, “corporate governance is complex and mosaic, consisting of laws, regulations,
politics, public institutions, professional associations and code of ethics” (Babic 2003, p. 1).
Governance explains more than the board processes and procedures which includes relationships between the boards, management, shareholders and other stakeholders such as employees and the community (Bain & Band 1996; Chowdary 2003).

CORPORATE GOVERNANCE AND ITS IMPACT ON THE MANAGEMENT OF AN ORGANIZATION