An empirical study of corporate governance and sustainability reporting practices in South African state-owned entities

Abstract

There is a paucity of research on corporate governance (CG) in state-owned entities (SOEs), specifically with reference to disclosure practices in sustainability reporting (SR). Extant research mainly focused on private entities, and rarely used hybrid research approaches and methodologies, and sector-specific concepts, with a focus on theory- and framework development. Therefore, the current research was primarily aimed at exploring CG and SR disclosure practices of South African Schedule 2 SOEs. The main RO was to investigate the evidence of an association between selected CG variables and SR performance indicators of South African Schedule 2 SOEs. Supplementary to the main RO, the study also explored the nature and scope of the disclosure practices SOEs’ in reporting on CG and sustainability, the extent of SOEs’ adherence to performance standards, and possibility of a trend in the disclosure practices regarding CG and SR. To address gaps in the knowledge of this context, the study followed a mixed-methods design in which association of multiple variables was investigated a 15-year time span (2005–2019). The results of multivariate regression analysis performed on the evidence of an association between selected CG variables and SR performance indicators were found to be inconclusive, except for board size (BS), which was found to be positively and significantly associated with the triple bottom line dimensions of SR. These results indicate the need for further research in this area. The findings of the textual content analysis revealed a fair degree of adherence to CG reporting standards by SOEs, whereas disclosure performance on SR indicators painted a dismal picture. With regard to trends in reporting, the study found a sporadic high degree of variations and fluctuations in SOEs’ disclosure practices. The main contribution of the study lies in an empirical investigation of the association of the less studied CG variables and SR performance indicators in the context of South African SOEs through unique, multiple dimensional approach – methodological, theoretical and periodical. Thus, this research has both policy and managerial implications as it provides useful insights for stakeholders within SOEs’ arena. It’s also a theoretical starting point for future research on governance–sustainability integration. Practitioners and policy-makers are encouraged to strengthen governance oversight on disclosure requirements, whilst investing in training and capacity development initiatives aimed at standardising disclosure practices. A disclosure and transparency compliance framework aimed at this purpose is thus proposed in this research.

Go na le dinyakišišo tše mmalwa ka ga bolaodi bja dikhamphani (CG) ka dihlongweng tša mmušo (di-SOE), kudukudu mabapi le ditiro tša go tsebagatša diphiri ka go fa dipego ka ga kamego ya khamphani go setšhaba le tikologo (SR). Dinyakišišo tša bjale di lebeletše kudu go dikhamphani tša phraebete, ebile ga se gantši di šomiša mekgwa le ditsela tša dinyakišišo tše di kopantšwego le mareo ao a amanago kudu le lefapheng le itšego, go lebeletšwe kudu teori le tlhabollo ya metheo. Ka fao, dinyakišišo tša bjale di ikemišeditše go utolla ditiro tša go tsebagatša tša CG le tša SR tša Šetule ya 2 ya Afrika Borwa ya di-SOE. Maikemišetšomagolo a dinyakišišo (RO) e bile go nyakišiša bohlatse bja kamano magareng ga diphapano tšeo di kgethilwego tša CG le tša go šoma ga SR tša Šetule ya 2 ya Afrika Borwa ya di-SOE. Go tlaleletša RO ye kgolo, dinyakišišo di lebeletše gape sebopego le bogolo bja ditiro tša go tsebagatša tša di-SOE ge di bega ka ga CG le go kamego ya khamphani go setšhaba le tikologo, bogolo bja go obamela ga di-SOE go melawana ya go phethagatša mošomo, le kgonagalo ya phetogo ka go ditiro tša go tsebagatša mabapi le CG le SR. Go rarolla dikgoba tše di lego gona ka tsebong ya seemo se, dinyakišišo di latetše tlhamego ya mekgwa ye e kopantšwego yeo go yona kamano ya diphapano tše ntši mo lebakeng la mengwaga ye 15 (2005–2019) e nyakišišitšwego. Dipoelo tša tshekatsheko ya poelomorago ya makala a mantši yeo e dirilwego go bohlatse bja kamano magareng ga diphapano tša CG tšeo di kgethilwego le dilaetši tša go šoma ga SR di hweditšwe gore ga se tša felela, ka ntle le go bogolo bja boto (BS), bjo bo hweditšwego gore bo amana gabotse le kudu le mathoko a mararo a motheo a SR. Dipoelo tše di laetša gore go na le tlhokego ya dinyakišišo ka mo lekaleng le. Dikutollo tša tshekatsheko ya diteng tša dingwalwa e utollotše gore go na le bogolo bjo bo lekanego bja go obamela melawana ya go fa dipego ya CG ka di-SOE, mola e le gore go šoma ga go tsebagatša ka ga dilaetši tša SR di laeditše seemo sa go se kgahliše. Mabapi le diphetogo ka ga go fa dipego, dinyakišišo di hweditše seemo sa diphapano sa godimo ka fao go sa lekanego le go fetogafetoga ga ditiro tša go tsebagatša ka di-SOE. Seabesegolo sa dinyakišišo tše se go dinyakišišo tšeo di nago le bohlatse tša kamano magareng ga diphapano tša go se nyakišišitšwe kudu tša CG le dilaetši tša go šoma ga SR ka seemong sa di-SOE tša Afrika Borwa SOE ka go diriša mokgwa wo o swanago o nnoši wa makala a mantši – wa mekgwa, diteori, le dinako tše di fapanego. Se se ra gore, dinyakišišo tše di na le bobedi diabe go melawana le go bolaodi ka ge di fana ka tsebo ye bohlokwa go batšeakarolo ka go lekala la di-SOE. Gape ke mathomomayo ya teri go dinyakišišo tša ka moso tša mabapi le kopanyo ya bolaodi le go kamego ya khamphani go setšhaba le tikologo. Bašomedi ba ka lekaleng le bahlami ba melawana ba hlohleletšwa go maatlafatša tekodišišo ya bolaodi mabapi le dinyakwa tša go tsebagatša, mola ka go le lengwe ba beeletša go maitekelo a tlhahlo le a tlhabollo ya bokgoni tšeo di ikemišeditšego go swantšha ditiro tša go tsebagatša. Motheo wa go obamela go tsebagatša le wa go hloka sephiri wo o ikemišeditšego mabakeng a o a šišinywa ka mo dinyakišišoing tše.

Kukhona ukusweleka okukhulu kocwaningo ngokuphathwa kahle okwaziwa nge-corporate governance (CG) kwezinkampani ubunikazi bazo okuwumbuso ezaziwa njengama-state-owned entities (SOEs), ikakhulukazi mayelana nezinqubo zokudalula ngokusobala ekubikeni ngokuqhubekela phambili okwaziwa ngokuthi yi-sustainability reporting (SR). Ucwaningo olukhona manje lugxila kakhulu kwizinkampani zangasese, kanti futhi aluvamile ukusebenzisa izinqubo zocwaningo nama-methodoloji kanye nemiqondo eqondene nemikhakha ethize, ngokugxila kakhulu kwithiyori kanye nohlaka lwentuthuko. Ngakho-ke, ucwaningo lwamanje lwenziwe ngenhloso yokuphenya ngezinqubo ze-CG kanye ne-CR kwisheduli yeNingizimu Afrika eyaziwa ngelokuthi yi-South African Schedule 2 SOEs. Injongo enkulu yocwaningo eyaziwa ngelokuthi yi-research objective (RO) bekuwukuphenyisisa ngobufakazi obuhambisana nezinto ezithintana ne-CG kanye ne-SR nezinkomba zokusebenza ze-South African Schedule 2 SOEs. Ngokuhambisana nenjongo enkulu ye-RO, ucwaningo luphenye ngenhlobo kanye nobubanzi bezinqubo zokudalula ngokusobala ukubika kwama-SOE kwi-CG kanye nokuqhubekela phambili, indlela ama-SOE alandela ngayo amazinga okusebenza, kanye nokukhonakala kwenjwayelo yezinqubo zokudalula ngokusobala mayelana ne-CG kanye ne-SR. Ukubhekana naleli gebe kulwazi lwalesi simo, ucwaningo lulandele idizayini yamamethodi axubene (mixed-methods design) lapho khona okube nokuhambisana kwezinto ngesikhathi seminyaka engu 15 ukusukela ngo (2005-2019) okwaphenyisiswa ngaso. Imiphumela yohlaziyo olwaziwa ngokuthi yi-multivariate regression analysis lwenziwe kubufakazi obuhambisana nobudlelwane phakathi kwama-variable e-CG kanye nezinkomba zokusebenza kwe-SR okutholakala kungenamphumela obambekayo (inconclusive), ngaphandle kosayizi noma ubungakanani bamabhodi (board size - BS), okutholakala kuhambisana kahle nangokubalulekile nalokho okubizwa nge-triple bottom line dimenstions alokho okuyi-SR. Le miphumela ikhombisa isidingo sokuthi kwenziwe ulunye ucwaningo kulo mkhakha. Okutholakele ngohlaziyo lwengqikithi yemibhalo olwaziwa nge-textual content analysis, kubonise ukunamathela ngokulingene ngamazinga okubika nge-CG okwenziwa ngama-SOEs, kanti izinkomba zokudalula ngokusobala kwe-SR zona zikhombise isithombe esibi kakhulu. Mayelana nenjwayelo kwezokubika, ucwaningo luthole ukuthi kukhona izinga eliphezulu lokushintshashintsha kwizinqubo zokudalula ngokusobala kwama-SOE. Umthelela omkhulu wocwaningo usebufakazini bokuphenyisisa ngama-variable e-CG okungavamile ukuthi kucwaningwe ngawo kanye nezinkomba zokusebenza kwama-SR kwisimo saseNingizimu Afrika ngama-SOE ngokusebenzisa inhloso eyodwa yenqubo ebonelela izinhlangothi ezehlukene – amamethodoloji, amathiyori kanye nezinkathi ezehlukene. Ngakho-ke, lolu cwaningo lunezinkomba zokumele kwenziwe kwezomgomo kanye nakwezokuphatha njengoba lunikeza ngemibono ewusizo kumkhakha wama-SOE. Lubuye futhi lube yisiqalo sethiyori yekusasa ngocwaningo mayelana nokuhlanganisa inqubo yokuphatha kanye nenqubekela phambili. Ama-practitioner kanye nabenzi bemigomo bakhuthazwa ukuqinisa inqubo yokuqapha kwezokuphatha kanye nezidingo zokudalula ngokusobala, kanti futhi kufakelwe izimali ekuqeqesheni kanye nasekuthuthukiseni amakhono anenhloso yokuqinisa amazinga okudalula ngokusobala. Ukudalula ngokusobala kanye nokulandela inqubo yohlaka lokusebenza ngendlela esobala ngale nhloso, yilokho okuphakanyiswayo kulolu cwaningo.