Analysing the Role of Good Corporate Governance in TVET Colleges in South Africa

Thebogo Portia Percians Mange

doi:10.7176/ppar/11-5-02

Abstract

The main purpose of the study was to analyse the role of good corporate governance in TVET colleges in South Africa (SA).The study employed qualitative methods using secondary data from various credible publications. From a theoretical perspective, the study discovered that, corporate governance plays a pivotal role in TVET colleges to certify equal treatment of shareholders, integrity and business ethics, conflict resolution, accountability and transparency in all spheres of their operations and leadership. In the same vein, empirical studies examined indicated that, TVET colleges face a myriad of challenges such as lack of effective leadership and sound administration; inadequate and misappropriation of funds as well as weak accountability. Furthermore, TVET colleges also experience inadequate and substandard infrastructure and insufficient equipment thus inter alia. The study recommends that, TVET colleges in SA should leverage on compliance with good corporate governance principles both internally and externally as contained in the King’s reports of corporate governance. It emerged from the study that, TVET colleges should develop code of practice in line with the CET Act. Likewise, TVET colleges must consider training in King codes and other relevant governance codes so as to reap fully the rewards of good corporate governance within their space. Keywords : Corporate governance, performance, management DOI: 10.7176/PPAR/11-5-02 Publication date: June 30 th 2021

Highlights

With the outbreak of the global economic meltdown, corporate failures, and other challenges, there has been an increase in the demand for detailed organisational disclosures
Integrated sustainability performance and integrated reporting are recommended in the report to enable stakeholders to make informed assessments on the economic value of a company Naidoo, (2009)
Corporate governance plays a pivotal role in technical and vocational education and training (TVET) colleges to certify equal treatment of shareholders, integrity and business ethics, conflict resolution, accountability, and transparency in all spheres on their operations and leadership

Summary

Introduction

With the outbreak of the global economic meltdown, corporate failures, and other challenges, there has been an increase in the demand for detailed organisational disclosures. The stakeholders believe that the disclosures will promote transparency and accountability by those entrusted with running the organisations’ affairs (Moloi 2014; Reuters 2008; Minamihashi 2009; Ali 2007). TVET colleges function in a turbulent and complex atmosphere requiring difficult choices and trade-offs within competing priorities to be made (Naidoo, 2009). For this reason, the fundamental roles of corporate governance are used to promote business ethical practices to meet the increasing demands for equal treatment of shareholders, integrity and business ethics, conflict resolution amongst other roles. Moloi (2008) indicated that corporate governance values in South Africa were created to ensure the ethical control and management of companies, organisations, and institutions to enhance ethical leadership, accountability, transparency, and sustainability of these organisations. The roles of corporate governance became prominent in TVET colleges following increased, dishonest, and unethical dealings that caused shareholders to flee out of fear, distrust, and disgust (Zhou and Cheng, 2011)

Objectives

Conclusion