The Nexus between Ethical Culture and Corporate Governance in a South African Bank

Abstract

Over the years, several regulations and laws have been enacted in attempt to advance the effectiveness of corporate governance. Effective corporate governance is important as it can protect against poor management and support the growth of organisations. However, the amount of corporate misconduct that has been reported has proven regulatory and legislative mechanisms to be insufficient in deterring misconduct. Scholars have suggested that future research should suggest ways in which the effectiveness of corporate governance can be advanced in organizations. The repercussions of corporate misconduct are that there are cost implications that have to be borne by organisations and possibly even the economy in cases of entities that are identified as systematically important financial institutions, such as banks. It is, therefore, important to investigate the nexus that lies between corporate governance and ethical culture to determine their impact when applied in organisations.

The research approach employed is the qualitative research methodology. A thematic comparative analysis was conducted from the integrated annual reports of Organisation X. Integrated annual reports from year 2018 to 2019 were studied in relation to the practice of corporate governance and ethical culture. In order to obtain insight on Organisation X’s commitment to ethical culture, 13 semi-structured interviews were conducted with individuals employed by Organisation X. As this study investigated the relationship between corporate governance and ethical culture in a South African banking institution, it reveals valuable insights regarding the various relationships that underlie the practices of corporate governance and ethical culture in organisations