Systemic Issues Hindering the Development of Effective Corporate Governance and Social Responsibility Practices in Nigeria

Babawande Sheba

Abstract


The challenges facing many companies operating within frontier and emerging economies on corporate governance (CG) and social responsibility issues can be linked to the prevalent systemic issues faced by those economies. This paper critically examines the systemic issues prevalent in Nigeria, which are hindering the development of strong CG and Corporate Social Responsibility (CSR) practices. A review of key literature was carried out focusing on issues relating to corruption and governance systems, including the effect that these have on social responsibility practices. It critically evaluates relevant aspects of corruption as identified by Transparency International and the impact that these have on both the economy and the society. Current economic challenges facing Nigeria are critically examined while the strategic importance of good governance for socially responsible practices were also evaluated, including reforms being made to address these issues. A wide range of sources were used to inform this review, including government and non-governmental reports (38%), academic journals (22%), news articles (22%), conference proceedings (8%), books (5%), and company reports (5%). Several systemic issues pose a challenge to the development of effective CG and CSR practices in Nigeria. These issues relate to the level of corruption with the various aspects of the economy, which are in effect failing to promote the spirit of good governance and serious engagement with CSR. In addition, a few inconsistencies in the governance framework continues to pose a challenge to businesses although considerable efforts are being made to address these. This work provides an important foundation for researchers and businesses who are concerned with governance framework and systems in Nigeria and how these affect social responsibility practices of businesses. Access to data is a limitation of this research.

Aus. J. Law, Ethics & Gov. Vol 3(2), October 2018, P 69-82

Keywords


Corporate Governance; Corporate Social Responsibility; Nigeria; Sustainability; Corruption

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