ASSESSING CONSTRAINTS TO ADOPTION OF GOOD CORPORATE GOVERNANCE PRACTICES BY STATE OWNED ENTERPRISE IN ZIMBABWE

Abstract

Despite the implementation of various legal frameworks and institutional measures to promote corporate governance practices, poor governance habits remain deeply rooted in both the public and private sectors. This paper examines the main obstacles that prevent the adoption of effective governance frameworks in State-Owned Enterprises (SOEs) by drawing on theoretical perspectives, case studies, and international practices. Evidence from the study suggests that SOEs could be a foundation for economic growth if not for the poor corporate governance practices. These issues are driven by factors such as political interference, lack of political will, weak rules and regulations governing SOEs, among other challenges that obstruct the adoption of good governance. The findings emphasize the importance of engaging stakeholders to secure their support for policies, learning from best practices elsewhere, building capacity, and increasing political will—among various strategies—to improve corporate governance in SOEs. Nonetheless, further research is necessary to explore how these strategies can be effectively used to promote good corporate governance in SOEs.