Ethical Dimensions of Corporate Governance Practice in Ghana: Developing a Theoretical Perspective

Abstract

During the last three decades, corporate governance has received growing attention at both the national and international levels. This is mainly due to the increasing corporate financial scandals and the growing acknowledgement that improved corporate governance was crucial for economic growth and development. In Ghana, the enactment of the corporate governance code (2002) by the Securities and Exchange Commission (SEC) resulted in numerous interpretations regarding codes of best practices. However, due to unethical governance activities and decisions, compliance with the codes and enforcement by the SEC and other regulators has become an issue of growing concern. This chapter presents the ethical dimensions of corporate governance practice in Ghana. Using a constructivist grounded theory methodology the study develops a substantive theory of corporate governance which identifies the dominant influence of national culture on corporate governance practices. In the context of Ghana, corporate governance is socially constructed, thus understanding the behaviour of the board of directors is vital for comprehending how corporate governance is practised and serves as a useful guide to investors and corporations both locally and internationally.