| dc.description.abstract | This research project addresses corporate governance practices in middle level colleges in Nairobi
Central Business District, Kenya. It gives a more explicit exposition of the board of directors and
Chief Executive Officer of the institution in relation to corporate governance practices. It then
goes on to address some of the underlying facts that promote efficient corporate governance
practices, and examines some of the duality of chief executive officers in the institutions. In
addition it also provides the information on ownership of the institutions and the sizes of the
board of directors in the institutions. The document also provides a survey of the audit
committees in the colleges on the link to corporate governance practices and management of the
colleges. One of the most striking differences between countries’ corporate governance systems is
the difference in the ownership and control of firms that exist across countries. Systems of
corporate governance can be distinguished according to the degree of ownership and control and
the identity of controlling shareholders. Effective corporate governance requires a clear
understanding of the respective roles of the board and of senior management and their
relationships with others in the corporate structure. The relationships of the board and
management with shareholders should be characterized by frankness; their relationships with
employees should be characterized by fairness; their relationships with the communities in which
they operate should be characterized by good citizenship; and their relationships with the
government should be characterized by a commitment to compliance. Senior management, led by
the chief executive officer, is responsible for running the day-to-day operations of the corporation
and properly informing the board of the status of such operations. Management’s responsibilities
include strategic planning, risk management, and financial reporting. The board of directors has
the important role of overseeing management performance on behalf of shareholders. Its primary
duties are to select and oversee a well-qualified and ethical CEO who, with the senior
management, runs the corporation on a daily basis, and to monitor management’s performance
and adherence to corporate standards. Effective corporate directors are diligent monitors, but not
managers, of business operations. Good corporate governance seeks to promote: effective and
sustainable corporations that contribute to the welfare of society by creating wealth, employment
and solutions to emerging challenge. Responsive and accountable corporations, legitimate
corporations that are managed with integrity, probity and transparency, recognition and protection
of stakeholders’ rights, an inclusive approach based on democratic ideals, legitimate
representation and participation. Governance is concerned with the processes, systems, practices
and procedures – the formal and informal rules – that govern institutions, the manner in which
these rules and regulations are applied and followed, the relationships that these rules and
regulations determine or create, and the nature of those relationships. Essentially, governance
addresses the relationship role in the institutional framework. Corporate governance, therefore,
refers to the manner in which the power of a corporation is exercised in the stewardship of the
corporation’s total portfolio of assets and resources with the objective of maintaining and
increasing shareholder value and satisfaction of other stakeholders in the context of its corporate
mission. | en_US |
