BEST PRACTICES OF BOARDS OF DIRECTORS OF JSE LISTED COMPANIES IN THE ICT SECTOR IN SOUTH AFRICA
The purpose of the research was to determine the best practices needed by Boards of Directors of JSE listed companies in the Information and Communication Technology (ICT) sector in South Africa. The best practices were solicited with the aim of assisting Boards of Directors in ICT listed companies in South Africa to ensure that their Boards function effectively and optimally. In the process of conducting this research, best practices of Boards of Directors in the ICT listed companies were identified. An academic literature review was compiled with the aim of exploring existing academic literature and applying it to the main research problem that was being investigated. The literature review established a number of best practices needed by Boards of Directors in ICT listed companies. These best practices included, but were not limited to: the importance of good corporate governance, Boards of Directors having clear guidelines on their roles and responsibilities, CEO and Chairman duality, Board composition, Board size, efficient Board processes, presence of Board committees, the relationship between management and the Board, Board diversity and Board recruitment programmes. The research employed an interpretive analysis as part of the qualitative methodology. 14 in-depth interviews were completed with Boards of Directors in ICT listed companies. Interviews were transcribed and content analysis was performed in order to generate recurring themes. The research was able to establish and validate a number of propositions formulated in the literature review. The validated propositions included the following: · Effective Boards of Directors have clarity of their roles and responsibilities on the Board · Best practice dictates that there should be separation of CEO and Chairman duality iii · Boards should comprise a majority of non-executive directors as it ensures effectiveness and accountability · Small Boards are advisable as there are easier to manage and they function more effectively than larger Boards · Efficient Board processes and constructive conflict on the Board facilitate a climate of productive director participation · Best practice in corporate governance dictates that Boards should have specialized committees on the Board · In order to optimize Board effectiveness, it is important that there exist Board recruitment and development programmes · A strong, positive relationship between the Board and management will ensure that the Board functions effectively · Diversity is important for all Boards for improved effectiveness The key message is that it is in the best interest of ICT listed companies to adopt and conform to the best practices identified in this research as this will ensure Board effectiveness, and sustainable growth and performance.
MBA thesis - WBS
Boards of Directors , ICT companies , Information technology companies , Directors