An Effective and Prompt Assessment of Good Corporate Governance on Public Sector Entities- Evaluation of Ideal Best Practices.

International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue I, January 2022 | ISSN 2454–6186

An Effective and Prompt Assessment of Good Corporate Governance on Public Sector Entities- Evaluation of Ideal Best Practices.

Tassisius Muzivi
Graduate School of Business, Bindura University of Science Education

Abstract
There are several best practices against which good corporate governance can be assessed based on; however, in a public sector setup it is not feasible to apply all the benchmarks during prompt corporate governance assessments. There is also lack of clarity in literature on specific best practices applicable to the public sector. Thus, the objective of this research is to evaluate the ideal corporate governance best practices in the context of public sector entities. An extensive and critical review of literature has been conducted to evaluate the appropriate best practices. Main source of related information has been journals, prior empirical studies and books. In the process, the value and intricacy of good governance in the context of public entities have been expounded. Accordingly, it was established that good governance has a significant contribution to economic growth, sustainability and investor attraction; public sector governance has also been found out to be intricate due to multiple government arms, bureaucracy, political influence and citizenry involvement. It was concluded that corporate governance for public sector entities is effectively revealed through quality service, transparency, compliance and strategic focus; extent of political influence and ethical conduct of those in charge. It is recommended to apply a standard corporate governance assessment criterion on public sector entities to enhance comparability, effectiveness and promptness.
Keywords
Public sector, corporate governance, best practices, government, ideal

I. INTRODUCTION

Corporate governance studies have grown to prominence in all sectors and the public sector has not been spared. The public sector unlike the private sector has three arms of control namely; management, SOEs board and the government itself through the line minister [1]. The multiple arms of control and inherent political influence render public sector governance intricate. In general there are a plethora of corporate governance best practices cited in literature. The common ones are transparency and full disclosure, accountability, compliance, provision of quality service, sound financial management, strategic focus, risk management, board independency and board evaluation, corporate social responsibility, environment sustainability, ethics and integrity, responsiveness, effectiveness, information technology innovation, availability of corporate governance frameworks, fair conduct of elections, rule of law and political conduct. Assessment of corporate governance in the public sector cannot be feasibly carried out on all the varied best practices. Accordingly, this study seeks to evaluate the best practices at the core of public sector governance to provide a feasible benchmark of public sector governance. In trying to achieve this objective the benefits of good governance in the public sector setup is established. Theoretical and empirical literature provide the basis of the study.

II. LITERATURE REVIW

A. Good corporate governance- national benefits
The need for nations and entities to practice good governance is inevitable. Corporate governance issues have grown to prominence across all sectors [2]. The need for good governance has been intensified by industrial development and general call for accountability and transparency [3]. Accordingly, corporate governance must be sound to achieve economic growth [4]. Without good corporate governance economic growth is difficult to achieve. Good governance accelerates economic growth [5]. On the other hand good corporate governance is linked to high levels of investment capital [6].

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