Corporate governance in private sector organizations: A case study of Private Sector Foundation Uganda

Abstract

This study was prompted by the evidence that although Private Sector Foundation Uganda (PSFU) seems to have a proper corporate governance structure, some challenges are still being experienced as regards to corporate governance. This observation seemed unusual considering the fact that organizations should be putting proper corporate governance issues at the fore front. The study’s objectives therefore were: to establish the nature of Corporate Governance in PSFU, the level of accountability and transparency in PSFU, and strategies of improving Corporate Governance in the organization. The study adopted a descriptive survey design approach. Both qualitative and quantitative approaches were used to gather data from a sample size of 60 respondents. A self-administered questionnaire was designed to gather primary data from informants and an interview guide was used to obtain qualitative information. The study’s findings showed that the nature of corporate governance at PSFU is essential as almost all the principles of corporate governance are adhered to. The study further showed that there is a high level of transparency and accountability exercised at PSFU. Strategies for improving corporate governance at PSFU include among others setting in place a high level of organization transparency, improving information flow and public over sight. Overall, the study recommends that PSFU‘s board needs to play a significant role in the formulation and adoption of the organization’s strategic direction. The extent of the board’s contribution to the organization’s strategy will range from approval at one end to development at the other. Each board must determine what role is appropriate for it to undertake and clarify this understanding with management.