Corporate Government and Organizational Performance
This study was aimed at assessing the impact of corporate management on organizational performance: A case study of commercial banks in Uyo, Akwa Ibom State.
To achieve this, survey research method was employed. Respondents were drawn from five selected commercial banks in Uyo. A total of 120 respondents were drawn using simple random sampling techniques. Three research hypotheses were also set to give the study a focus.
A total of 120 questionnaires were administered on the respondents and 118 were retrieved representing 98.33%.
Data obtained were analysed using arithmetic mean rating and chi-square to test the postulated hypotheses. Findings revealed that the corporate governance has a significant impact on organizational performance.
To this end, the researcher recommended that business organizations should imbibe corporate governance and should entrench ethical behaviours, collective orientation as well as disclosure of timely information to stakeholders in order to boost confidence which will ultimately result in increase performance of organizations.
Over the years, keen interest has always been on engendering performance that will ultimately culminate in growth and continuous patronage. It has become a worldwide dictum that the quality of corporate governance makes an important difference to the soundness and unsoundness of business organizations.
Broadly speaking, corporate governance refers to the extent to which companies are run in an open and honest manner (Sanusi, 2003).
Thus, effective corporate governance practice incorporates transparency, openness, accurate reporting and compliance with statutory regulations among others.
Historically, antecedents indicate that financial crisis is a direct consequence of lack of good corporate governance; invariably one of the sources of instability in the business organization is lack or inadequate practice of corporate governance.
Wherever power is exercised to direct, control and regulates activities that affect people, there is need for good exercise of such power.
For corporate entities, particularly public liability companies, the exercise of power over the enterprise’s direction, the supervision and control of executive actions, concern for the effects of the enterprise on other parties and especially the environment, the acceptance of a fiduciary duty to be accountable, constitute the quintessential of corporate governance.
The organizational distress in the last decades has posed many challenges to corporate governance in organization. Organization distress can be associated to lack or avoidance of code of ethics and professionalism. Odozi, (2007) expound this posting that, “Ethics, like, corporate governance, transparency and accountability, etc, is a cliché that has been abused and misused”.
The failure of organizations in Nigeria, and has been largely due to inadequate corporate governance or leadership, and failure of professional ethics as manifested in numerous instances of creative accounting practices, professionals insensitive internal control and risk management position being seriously compromised or even colluding with fraudster.
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