Ubuntu or Botho African Culture and Corporate Governance: A Case for Diversity in Corporate Boards

Abstract

This paper aims to provide a theoretical analysis on the relationship between nationality/ethnicity and compliance with international best practice corporate governance principles. Using Hofstede-Gray cultural-accounting dimensions, the paper attempts to demonstrate that the Ubuntu/Botho culture may in some instances promote/not promote compliance with international best practice corporate governance principles because of the value system(s) of this culture. In view of this, the paper further attempts to present a case for diversity in corporate boards and executive management to enhance corporate compliance with best practice corporate governance principles, performance, disclosure etc. in line with the literature and theoretical arguments on diversity.On one hand, this paper provides future research an opportunity to empirically assess the relationship between corporate compliance with international best practice and nationality/ethnicity (Ubuntu/Botho culture). Future research could also investigate whether the Ubuntu/Botho values hold true today in view of the autocratic regimes in the African continent which have perfected a culture of impunity, corruption and bad governance.