EVALUATING CORPORATE GOVERNANCE PRINCIPLES AND STAKEHOLDER RIGHTS: A CASE STUDY OF SAFARICOM
Abstract
Purpose of the Study: This study explores corporate governance practices at Safaricom PLC to determine adherence to principles of accountability, transparency, fairness, and compliance.
Methodology: A case study analysis of Safaricom's governance in terms of board structure, executive compensation, reporting integrity, shareholder rights, and stakeholder orientation.
Findings: The findings support Safaricom's use of governance codes and frameworks to encourage stakeholder participation, aligned incentives, risk oversight, and disclosures. The board has enough independent directors, incentives prioritize long-term value, reports ensure accountability, and shareholder engagement follows equitable standards.
Conclusion: While Safaricom demonstrates significant governance best practices, the study suggests it can strengthen governance further to position itself for long-term innovation leadership.
Recommendations: As stakeholders like institutional investors and civil society prioritize environmental/social issues amidst disruption, Safaricom should promote accountability, foresight and inclusive prosperity through effective governance.
Keywords: Corporate Governance, Principles, Stakeholder Rights, Safaricom
References
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Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. Journal of business ethics, 114, 207-223. https://doi.org/10.1007/s10551-012-1336-0
Kirkpatrick, G. (2009). The corporate governance lessons from the financial crisis. OECD Journal: Financial market trends, 2009(1), 61-87. https://doi.org/10.1787/fmt-v2009-art3-en
Matten, D., & Crane, A. (2005). Corporate citizenship: Toward an extended theoretical conceptualization. Academy of Management review, 30(1), 166-179. https://doi.org/10.5465/amr.2005.15281448
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Porter, M. E., & Kramer, M. R. (2011). Creating shared value: Redefining capitalism and the role of the corporation in society. Harvard Business Review, 89(1/2), 62-77.
Rossouw, G. J. (2009). The ethics of corporate governance: Crucial distinctions for global comparisons. International journal of law and management, 51(1), 5-9. https://doi.org/10.1108/17542430910936628
Schachter, K. (2019). The Digitalization of Development: Understanding the Role of Technology and Innovation in Development through a Case Study of Kenya and M-Pesa.
Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The journal of finance, 52(2), 737-783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
Smith, G. (2011). G7 to G8 to G20: Evolution in Global Governance.
Solomon, J. (2020). Corporate governance and accountability, 5th Edition, New Jersey, N.J: Wiley
Steinberg, M.R, (2011). Governance, Risk Management, and Compliance, Hoboken, New Jersey: John Wiley and sons Inc.
Vurro, C., Russo, A., & Perrini, F. (2009). Shaping sustainable value chains: Network determinants of supply chain governance models. Journal of business ethics, 90, 607-621. https://doi.org/10.1007/s10551-010-0595-x
Wanjiru, K. R. (2022). Corporate Governance Practices and Performance of Kenya Forest Service in Nairobi City County.
Aguilera, R. V., Desender, K., Bednar, M. K., & Lee, J. H. (2015). Connecting the dots: Bringing external corporate governance into the corporate governance puzzle. Academy of Management Annals, 9(1), 483-573. https://doi.org/10.5465/19416520.2015.1024503
Arcot, S., Bruno, V., & Faure-Grimaud, A. (2010). Corporate governance in the UK: Is the comply or explain approach working? International Review of Law and Economics, 30(2), 193-201. https://doi.org/10.1016/j.irle.2010.03.002
Asamoah, L. A., Mensah, E. K., & Bondzie, E. A. (2019). Trade openness, FDI and economic growth in sub-Saharan Africa: do institutions matter? Transnational Corporations Review, 11(1), 65-79. https://doi.org/10.1080/19186444.2019.1578156
Balzarova, M. A., & Castka, P. (2012). Stakeholders’ influence and contribution to social standards development: The case of multiple stakeholder approach to ISO 26000 development. Journal of business ethics, 111, 265-279. https://doi.org/10.1007/s10551-012-1206-9
Barth, M. E., & Schipper, K. (2008). Financial reporting transparency. Journal of Accounting, Auditing & Finance, 23(2), 173-190. https://doi.org/10.1177/0148558X0802300203
Bartkus, B. R., & Glassman, M. (2008). Do firms practice what they preach? The relationship between mission statements and stakeholder management. Journal of business ethics, 83, 207-216. https://doi.org/10.1007/s10551-007-9612-0
Chan, K. C., & Li, J. (2008). Audit committee and firm value: Evidence on outside top executives as expert-independent directors. Corporate Governance: An International Review, 16(1), 16-31. https://doi.org/10.1111/j.1467-8683.2008.00662.x
Chimakati, F. M. (2023). Establishment Structural Dimension Design, Exigency Variables, And Challenges Mitigation in Kenya. African Journal of Emerging Issues, 5(9), 21-38.
Chimakati, F. M., & Oduol, T. (2023). Authentic Leadership, Ethical Acquisition Procedures and Establishment Performance A Case of Teachers Service Commission of Kenya. African Journal of Emerging Issues, 5(8), 107-132.
Claessens, S., & Ueda, K. (2008). Banks and labor as stakeholders: Impact on economic performance. https://doi.org/10.2139/ssrn.1278440
Claessens, S., & Yurtoglu, B. B. (2013). Corporate governance in emerging markets: A survey. Emerging markets review, 15, 1-33.
Cornforth, C. (2004). The governance of cooperatives and mutual associations: A paradox perspective. Annals of public and cooperative economics, 75(1), 11-32. https://doi.org/10.1111/j.1467-8292.2004.00241.x
Daily, C. M., & Dalton, D. R. (1994). Bankruptcy and corporate governance: The impact of board composition and structure. Academy of Management journal, 37(6), 1603-1617. https://doi.org/10.2307/256801
Dalton, D. R., & Dalton, C. M. (2011). Integration of micro and macro studies in governance research: CEO duality, board composition, and financial performance. Journal of management, 37(2), 404-411. https://doi.org/10.1177/0149206310373399
Doh, J. P., Howton, S. D., Howton, S. W., & Siegel, D. S. (2010). Does the market respond to an endorsement of social responsibility? The role of institutions, information, and legitimacy. Journal of management, 36(6), 1461-1485. https://doi.org/10.1177/0149206309337896
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management science, 60(11), 2835-2857. https://doi.org/10.1287/mnsc.2014.1984
Etieyibo, E. (2021). Why decolonization of the knowledge curriculum in Africa? Africa Today, 67(4), 75-87. https://doi.org/10.2979/africatoday.67.4.05
Hart, O. (1995). Corporate governance: some theory and implications. The economic journal, 105(430), 678-689. https://doi.org/10.2307/2235027
Hasnas, J. (2012). Reflections on corporate moral responsibility and the problem-solving technique of Alexander the Great. Journal of Business Ethics, 107, 183-195. https://doi.org/10.1007/s10551-011-1032-5
Howell, K. E., & Sorour, M. K. (2016). Corporate governance in Africa: assessing implementation and ethical perspectives, London: Palgrave MacMillan. https://doi.org/10.1057/978-1-137-56700-0
Ioannou, I., & Serafeim, G. (2012). What drives corporate social performance? The role of nation-level institutions. Journal of international business studies, 43, 834-864. https://doi.org/10.1057/jibs.2012.26
Keasey, K., Thompson, S., & Wright, M. (Eds.). (2005). Corporate governance: accountability, enterprise and international comparisons. John Wiley & Sons.
Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. Journal of business ethics, 114, 207-223. https://doi.org/10.1007/s10551-012-1336-0
Kirkpatrick, G. (2009). The corporate governance lessons from the financial crisis. OECD Journal: Financial market trends, 2009(1), 61-87. https://doi.org/10.1787/fmt-v2009-art3-en
Matten, D., & Crane, A. (2005). Corporate citizenship: Toward an extended theoretical conceptualization. Academy of Management review, 30(1), 166-179. https://doi.org/10.5465/amr.2005.15281448
OECD (2004). Corporate governance: a survey of OECD countries, Paris: OECD
Ongondo, F. O., & Williams, I. D. (2011). Greening academia: Use and disposal of mobile phones among university students. Waste management, 31(7), 1617-1634. https://doi.org/10.1016/j.wasman.2011.01.031
Porter, M. E., & Kramer, M. R. (2011). Creating shared value: Redefining capitalism and the role of the corporation in society. Harvard Business Review, 89(1/2), 62-77.
Rossouw, G. J. (2009). The ethics of corporate governance: Crucial distinctions for global comparisons. International journal of law and management, 51(1), 5-9. https://doi.org/10.1108/17542430910936628
Schachter, K. (2019). The Digitalization of Development: Understanding the Role of Technology and Innovation in Development through a Case Study of Kenya and M-Pesa.
Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The journal of finance, 52(2), 737-783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
Smith, G. (2011). G7 to G8 to G20: Evolution in Global Governance.
Solomon, J. (2020). Corporate governance and accountability, 5th Edition, New Jersey, N.J: Wiley
Steinberg, M.R, (2011). Governance, Risk Management, and Compliance, Hoboken, New Jersey: John Wiley and sons Inc.
Vurro, C., Russo, A., & Perrini, F. (2009). Shaping sustainable value chains: Network determinants of supply chain governance models. Journal of business ethics, 90, 607-621. https://doi.org/10.1007/s10551-010-0595-x
Wanjiru, K. R. (2022). Corporate Governance Practices and Performance of Kenya Forest Service in Nairobi City County.
Published
2024-02-15
How to Cite
Chimakati , F. M. (2024). EVALUATING CORPORATE GOVERNANCE PRINCIPLES AND STAKEHOLDER RIGHTS: A CASE STUDY OF SAFARICOM . African Journal of Emerging Issues, 6(1), 137 - 154. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/537
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