Role of Company Employees in Promoting Corporate Governance: A Comparative Analysis of the Approaches in Nigeria and the United Kingdom

Abstract

Good governance is an ideal which is difficult to achieve in its totality. Very few countries and societies have come close to achieving good governance in its totality. However, to ensure sustainable human development, actions must be taken to work towards this ideal with the aim of making it a reality. Recognition of the crucial place corporate organisations occupy in the economic advancement of any society, as well as the campaign to entrench, promote and sustain good governance in such organisations, has led to a rapid rise in global drive towards promoting good corporate governance rules, concepts and practices. An aspect of corporate governance involves resolution of conflicting interests of company stakeholders, including the company employees. Company employees are interested in outcome of company decisions because these decisions affect them directly and indirectly; it is therefore important for them to have a role in corporate decision-making so as to have an opportunity of protecting their interests. This paper aims to determine what role, influence or control employees should play in corporate governance and to what extent. Paying particular attention to role of employees in achieving good and sustainable governance within corporate organisations, the paper undertakes a comparative analysis of the systems, practices and approaches in Nigeria and the United Kingdom, the objective of the comparison being to draw insights from the highly advanced systems such as the UK in assessing the level of success and effectiveness of the Nigerian experience. Starting with a cursory look into the idea of governance, good governance and corporate governance, legal and regulatory framework and evolution of corporate governance in Nigeria, the paper identifies major stakeholders in corporate governance generally and proceeds into a discussion of corporate governance role of company employees in the named countries, after which a cursory evaluation of the Nigerian approach is undertaken while recommendations are offered for improvement, as or where necessary.