long essay
REGENT UNIVERSITY COLLEGE OF SCIENCE AND TECHNOLOGY
THE IMPORTANCE OF CORPORATE GOVERNANCE IN AN ORGANISATION, AND
ITS IMPACT ON KEY STAKEHOLDERS
(CASE STUDY OF GHANA WATER COMPANY LIMITED)
BY
EYRAM AFI SECKLEY
INDEX NO: 0590210
A DISSERTATION SUBMITTED TO THE SCHOOL OF ARTS AND SOCIAL
SCIENCES, IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE
AWARD OF BACHELOR OF SCIENCE DEGREE IN ACCOUNTING AND
INFORMATION SYSTEMS
DECEMBER 2011
DECLARATION
I, EYRAM AFI SECKLEY, wish to make a declaration that, with the exception of specific quotations, reference and ideas attributed to specific sources, both this content and format of the project work is entirely my own.
…………………………………………….
………………………………………..
EYRAM AFI SECKLEY
MR FESTUS TSATSU
ii
ABSTRACT
This research is centered on the Importance of corporate governance in an organization and its impact on key stakeholders. Using, Ghana Water Company Limited (GWCL) as the case study.
In the research, data was gathered from a cross-section of the stakeholders of the company on the presence of effectiveness, participation, transparency and equity in the corporate governance system of the company.
This was followed with a trend analysis of the
performance of the company over the three years ending 30th December, 2011. This was to determine whether the performance of the company reflected a good system of corporate governance in practice or otherwise. The findings of data collected from the stakeholders of the company indicated that the stakeholders were moderately convinced that there was the presence of the four basic tents of corporate governance in the corporate governance system practiced in the company. The result of the trend analysis however indicated a steep decline in the company’s performance in terms of growth and profitability over the three years ending 30th
December, 2011.
The contradiction between the two findings tends to indicate that though the company
THE IMPORTANCE OF CORPORATE GOVERNANCE IN AN ORGANISATION, AND
ITS IMPACT ON KEY STAKEHOLDERS
(CASE STUDY OF GHANA WATER COMPANY LIMITED)
BY
EYRAM AFI SECKLEY
INDEX NO: 0590210
A DISSERTATION SUBMITTED TO THE SCHOOL OF ARTS AND SOCIAL
SCIENCES, IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE
AWARD OF BACHELOR OF SCIENCE DEGREE IN ACCOUNTING AND
INFORMATION SYSTEMS
DECEMBER 2011
DECLARATION
I, EYRAM AFI SECKLEY, wish to make a declaration that, with the exception of specific quotations, reference and ideas attributed to specific sources, both this content and format of the project work is entirely my own.
…………………………………………….
………………………………………..
EYRAM AFI SECKLEY
MR FESTUS TSATSU
ii
ABSTRACT
This research is centered on the Importance of corporate governance in an organization and its impact on key stakeholders. Using, Ghana Water Company Limited (GWCL) as the case study.
In the research, data was gathered from a cross-section of the stakeholders of the company on the presence of effectiveness, participation, transparency and equity in the corporate governance system of the company.
This was followed with a trend analysis of the
performance of the company over the three years ending 30th December, 2011. This was to determine whether the performance of the company reflected a good system of corporate governance in practice or otherwise. The findings of data collected from the stakeholders of the company indicated that the stakeholders were moderately convinced that there was the presence of the four basic tents of corporate governance in the corporate governance system practiced in the company. The result of the trend analysis however indicated a steep decline in the company’s performance in terms of growth and profitability over the three years ending 30th
December, 2011.
The contradiction between the two findings tends to indicate that though the company
References: Aka, Jean (2001-2002).Auditing and Corporate Governance”, Legon Business Journal, Volume 1, Issue 2, pp 12-15 African Capital Markets Forum “Corporate Governance and Corporate Corruption in Ghana’’ (2002). 7. African Capital Markets Forum, “Fighting Corporate Corruption with Effective Corporate Governance”, (Dec2002), Accra. Organisation for Economic Cooperation and Development ,(April,1999) The King Report on Corporate Governance (1995,pp1) The Manual on Corporate Governance in Ghana (2000,pp5) Centre For International Private Enterprise /Institute Of Economic Affairs, West Africa Tweneboah, Francis D.”Corporate governance in Ghana Issue and Challenges”, African Capital Markets Forum Publications, (December 2002), Accra. Villars, Elizabeth “Adopting A Code of Best Practices For Corporate Governance in Ghana” African Capital Markets Forum Publications, (December2002).Accra 45 Annual Report and Accounts, 2008 Ghana Water Company Limited (2008), Accra East Annual Report and Accounts, 2009 Ghana Water Company Limited (2009), Accra East Region. Annual Report and Accounts, 2010 Ghana Water Company Limited (2010), Accra East Region. Daily Graphic, 2005 Tuesday March 29th. Mensah Sam. “Corporate governance in Ghana issues and challenges”, African Capital Markets Forum (December 2002), Accra. Mensah, Sam. “Corporate governance an antidote to corruption - The case of Africa”, Center for International Private Enterprise Publications (2002). Hyde, (September 2000) “Effective Corporate Governance: The Role of the Director. The Professional Accountant”, pp23. Ross, Westerfiled, Jordan (2001). “Essentials of Corporate Finance” (3rd Edition.).New York: McGraw-Hill/Irwin Publications.