BUSINESS CORPORATIONS AND EFFECTIVE CORPORATE GOVERNANCE

Abstract

Prior to the global economic and financial crisis which started in 2008, evidence from various surveys had indicated that corporate governance lapses were significantly responsible for the collapse of over 70% of companies in Nigeria in the preceding two decades. Corporate failures cut across sectors and include banks, insurance, textiles, communications, airways etc. Executive management and boards of- these institutions were alleged to have been reckless with investors funds, neglected due processes and took biased decision, conducts which negate principles of good corporate governance. Transparency, accountability, responsibility, fairness, independence and social responsibility are the principles of good governance. And this principle should be reflected in the culture, style and issues of an organisation. Companies in Nigeria need to continue or start to adapt and redefine their governance practices within the framework of evolving rules and codes especially the new 2018 corporate governance code. Corporate governance codes and ethics are both needed for enterprises development. Company executives can no longer afford to pretend that business is only bound by ethics, more effort should be on abiding by the law.