CHAPTER 1
INTRODUCTION
Corporate government is considered the general framework for
supervisory procedures, and control on Board of Directors: on order to ensure
procedure correctness related management control process, executive management,
and correctness of measures to be objective this ensure maintaining
shareholders rights through strengthening of the organization financial
performance. One of the main reason that led to major companies collapse is
department complicity, weak structure, weak control and follow-up units, and
lack of disclosure and transparency required to enhance the entity of the
organization and main stakeholder rights with the company and the shareholders,
which led to deficiencies in companies financial performance, since financial
performance is considered one of the most important measures of management
efficiency and indicating implement commitment of rules and standards used in organization.
1.2 Background of the Study
Corporate government is a number of process, policies, law
and institutions which impacts on the way a company is controlled. An important
theme of corporate government is the nature and extent of accountability of
people in the business and mechanism that try to decrease the principle agent
problem
Corporate government also include the relationships among
the many stakeholders involved and the goals for which the corporation is
governed; An essential condition for the survival of a company or more
generally of an organization lies on the ability of its members to act reliably
and efficiently to achieve the objectives of the organization. In a very small
business. The substance coordination of behavior can be achieved in numerous
way. The manager can verify directly that they tasks are performed on the way
he thinks which is suitable. But the supervision of the manager and the mutual
adjustment among various actors Mintzberg, (1982) are quickly becomes
insufficient when the number of the firms increased.
The issues of corporate governance is thereby complete with
completed issues connecting ideal institutional mechanism effective monitoring
and balancing of competing interest of stakeholders (both internal and external
to the corporate governance structure (William 2005) today corporate governance
is complex and mosaic consisting of law registration. According to Sir Adriah
Cadbury (2000) the corporate governance framework is there to encourage the
efficient use of resource and equally for required accountability for the
stewardship of those resources.
Statement of Problem
In the past, so many organizations in Nigeria have been
involved in unethical practices, which puts the credibility of their corporate
image dout. As such Airtel communication. Company just like other network
communication company have been constraint with issues arising from customers complaint of network quality
are frequent cuts of Fibre networks which link the cell sites. Previous
resources into the subject has brought to light the poor governance of so many
companies with indebted account in Nigeria economy. Their accounting system did
not reflect the companies financial status. A typical example is the financial
scan of Oceanic and intercontinental Bank after the consolidation. Most
management of such outfit were not accountable to stakeholders of the
companies. Beside, the counts and the regulatory, agencies were short of
authority, corruption and kickbacks were part of the system in the companies.
The poor governance practices led to the collapse of so many companies in Nigeria. Hence the need to study corporate
governance and it impact on the achievement of organizational goals.
Objective of the Study
To examine the internal and external corporate governance in
an organizational structure
To examine the effect of corporate governance in an
organization
To identify the systemic problem of corperate governance in
an organization structure
To proffer workable solution to the identified problem
1.5 SIGNIFICANCE OF
THE STUDY
The study will be significant to achieving of the
organizational goals especially as they utilize enhancing policy governance in
the organization. The study will also add to the existing knowledge on the
subject matter and will also be a reference material for further research on
corperate governance.
1.6 THE RESEARCH
QUESTIONS
The central research question is what is the impacts of
corperate governance on the achievement of organizational goals?
The specific questions are:
Does corperate governance affect the achievement of
organizational goals.
Does the internal and external corperate governance control
mechanism of any significant in an organization.
Is there any systemic problem of corperate governance in an
organization
Is there any possible solution to such problem.
1.7 SCOPE OF THE STUDY
The study covers the examination of corperate governance.
The organizational structure the collection of the empirical data is limited to
the organization.
1.8 LIMITATION OF THE STUDY
The limitation of this study arise from the short coming of
the research design. The instrument of data collection and non-challant
attitude of respondent for the fact the survey study is used. It is not certain
whether other research design such as description design historical design or
ex-post design will yield the same result. It is not certain whether other
research design such as description design historical design or ex-port design
will yield the same result, it is not also certain if the same result would be
obtained if other kind of instrument of data collection other than the
questionnaire is used to obtain data, beside, the mom-challant attitude of the
respondents and the over exaggeration or understatement of their responses
which scoring the items in the questionnaire could affect the validity of their
responses. These limitations should be taken cognizance of by other researchers
conducting similar studies.
1.8 DEFINITION OF TERMS
Corperate governance: this is relationship that exist
between the different participants and defending the direction of the firm .
Corperation: this refers to corporate entity or body by
means of which capitals is acquired, used for inventory in Assets producing
goods and service.
Share holders: people who have inested in a company through
subscribing to the company’s stock.
Board structure: management at the top comprising of board
of directors.
Ownership structure: shareholders and directors
CEO: Acronym for chief executive officers.
1.9 ORGANISATION OF THE STUDY
In summary,
the first group of research question in the study concentrates on design
strategies that separate decision control in board of the organization. The
second group of questions concentrates on design strategies that integrate
decision management with decision control in boards in these countries. The
third group of questions focuses on the transformation and convergence of
corperate boards. (Use also table) 1.2 for an overview of the organization of
this research.
Chapter two first elaborates on the diversity of corperate
governance roles in the organization by the literature. This chapter
conceptualizes the service role, the control roles and the strategic roles of
board of directors.These board roles are considered to be part of boards
decision management and decision control activities, the final independent of
corporate boards is understood by a structure that separate decision management
from decision control. In addition to a description of the formal independence
of boards. Chapter two also presents an overview of corporate governance
research frame work to capture the complex literature on board involvement
indecision making. Based on the literature review this also distinguishers two
competing perspectives of board organization: the conflict and the consensus
perspectives of board organization.
1.10 HISTORICAL REVIEW OF CA SE STUDY
Airtel commendation Nigeria with different branches all over Nigeria, but the main focus
is Airtel communication Uyo branch Akwa Ubom state. Which is located at 82 Ikot
Ekpene Road, it is the head Quarter / branch of Akwa Ibom State Nigeria. Airtel
Nigeria (Airtel Networks Limited) is a leading mobile telecommunication
services provider in Nigeria and a member of Airtel Africa Group, is committed
to providing innovation, exciting, affordable and quality mobile services in
Nigerian giving them the freedom to communicate rise above their daily
challenges and drive economic and social development. The company made history
on August 5, 2001 by becoming the first telecommunications market including the
first to launch commercial as services in Nigeria and has scored a Eeries of
many “first” in the competitive telecommunication in Nigeria. The first to
introduce toil-free 24 hour customers care: first to launch service in all the
six geo-political zones in the country. First to introduce affordable recharge
denominations; first to introduce monthly free Sms and first to introduce
monthly airtime bones
A truly innovative company, Airtel has showed resilience,
charting new paths in meeting the demands and needs of its esteemed
stakeholders and enhancing distribution as well as providing affordable
services to empower more Nigerians.
In Nigeria, Airtel is working tirelessly to live up to an
ambitions vision of being the most loved brand in the daily lives of Nigerians
as it offers a superior brand experience and a portfolio of innovative
productions and services ranging voice solutions to inventive data packages and
mobile broadband.