The Impact of Implementing Good Corporate Governance Mechanisms and Compliance Programs in Combating Corruption in Egyptian Companies: A Case Study from Egypt

Abstract

In recent years, there has been increasing interest and demand for the application of good corporate governance mechanisms and compliance programs as a means of reducing corruption in institutional companies. Since corporate corruption is widespread in all societies, both developed and developing, and since corruption has a serious impact on economic, sustainable, and social development, there has been widespread agreement that the application of good corporate governance mechanisms and compliance programs are effective tools that can reduce the serious consequences of corruption in large companies. Therefore, this study aimed to study the impact of the application of different corporate governance mechanisms and compliance programs on reducing corporate corruption. The study also included the advantages and disadvantages of each corporate governance mechanism according to the latest findings of experimental studies. The study also assessed the extent to which Egyptian companies comply with the Egyptian legislation and laws issued for corporate governance, and identified the best mechanisms that can be applied in Egyptian companies to govern those companies and implement compliance programs, and the impact of the application of good governance in reducing Egyptian corporate corruption, increasing employee and customer satisfaction, and reducing the depletion of company resources. In addition, the study addressed the main challenges facing Egyptian companies in implementing good corporate governance and compliance. The results of the study indicated that corporate governance mechanisms proposed by most international agencies and organizations concerned with combating corruption have an effective impact in reducing corruption in companies. However, to achieve the desired results from each good corporate governance mechanism, recent experimental studies have proposed some requirements or precautions that companies or governments can commit to to maximize the benefits of these mechanisms. On the other hand, the results of the study showed that Egyptian companies, both in the private and public sectors, have taken serious steps in implementing good corporate governance and implementing compliance programs. However, companies do not fully comply with the instructions of good corporate governance, and there are still some shortcomings in the implementation of good corporate governance and compliance programs. These shortcomings are due to several different reasons, which are mainly related to the non-mandatory nature of corporate governance in Egypt, in addition to the lack of sufficient incentives for companies to implement the proposed programs. Keywords: Governance mechanisms – compliance programs – corruption