Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

Public Sector Corporate Governance: Zimbabwes Challenges of Strategic Management in the Wake of Sustainable Development

Author(s): Daniel Chigudu

For sustainable development, the extent to which state-owned enterprises adhere to the fundamental values of good corporate governance is an important factor necessary to attract investment capital, encourage growth and economic stability. Zimbabwe has been saddled with the challenges of fashioning an environment which is investor-friendly, hence the need for public entities to be exemplary in good corporate governance. Highly publicized scandals that have shaken state-owned enterprises have been ascribed to deficits in corporate governance this study employs a qualitative approach through a descriptive-document philosophical analysis to examine the challenges in Zimbabwe’s strategic management for sustainable development. The corporate governance theories informing the study are the agency theory, stewardship theory, stakeholder theory and the transaction cost economics theory. The analysis is subdivided into themes which focus on the need for a human resources paradigm shift, management finesse and the continuum of culpability. The study reveals that the current corporate governance practice has not effectively improved the efficiency and effectiveness of the public entities. This is a result of corruption, inconsistencies, lack of commitment and absence of the rule of law and above all, excessive political interference. The study interrogates the ethical matters stemming out from such challenges to establish if the malpractices have been some form of complicity or an underestimation of the effect of good corporate governance in the public sector. Corruption has been institutionalized with cases of impunity on the rise. Issues of governance that countervail the sustainability and risk nexus are depicted. It is commendable that efforts are being made to entrench corporate governance in the public sector although positive results are yet to be realized. It is recommended that a rules-based approached should be adopted and that political interventions should be minimized. Human resources departments in state-owned entities and parastatals are encouraged to provide expert advice on good corporate governance and shy away from being complicit to bad governance.