Towards a theoretical framework of corporate governance: Perspectives from Southern Africa

Abstract

Purpose – The paper attempts to locate the debate on corporate governance in a social and cultural context. Methodology – It draws on the traditional African philosophy of ubuntu and articulates how this might affect corporate governance frameworks. The paper utilises multiple methods that include interviews, a review of documents, and case studies. It analyses incidents from across Southern Africa that demonstrate how notions of ubuntu influence corporate practices. Findings – The incidents in selected organisations reveal how multinational corporations are involved in the delivery of social welfare programmes to their employees and local communities. Such practices underscore the differences in perceptions about corporate social responsibility in the West and Southern Africa. Practical implications – It highlights the implications of these practices for multinational corporations and auditors who do business in Southern Africa. Originality – The paper argues that ubuntu informs corporate practices and influences perceptions on what constitutes ‘good’ corporate governance and ethics in Southern Africa. Finally, it proposes an alternative corporate governance framework informed by ubuntu, communitarianism, and stakeholder theories. Arguably, such a corporate governance framework will take into account the social and historical context of Southern Africa. Research limitations – The proposed corporate governance framework might suit only those communities who subscribe to ubuntu values and communitarianism.