A comparative analysis of strengths and weaknesses of corporate governance practices between two jurisdictions; UK and South Africa

This paper is an exploration of theoretical aspects underpinning the practice of Corporate Governance (CG) in the United Kingdom and South Africa. Because of several corporate scandals and failures in the twenty and twenty first siècles, Corporate Governance has been a significant and crucial subject and field of study in business schools in recent years. Leadership and Management of business entities and alignment to prescripts that are statutory formulated for prevention of corporate decline and enhancement of sound business principles continue to be highly contentious issues. A theoretical and exploratory narrative synthesis was conducted to unearth the strengths and weaknesses of contextual explication, practice and legal application of Corporate Governance in both the United Kingdom and South Africa. In terms of the UK, the study found out that the CG is designed and benchmarked on international best practice, seamlessly fitting within all the Codes on Key Aspects of Corporate Governance. Secondly, another major element of strengths determination were found to be inherent in the practice of voluntary compliance. However, the greatest criticisms of Corporate Governance theories in the UK was the fact that their focus is largely on public corporations, especially those listed in London stock exchange and thus, leave behind small and medium enterprises. The cultural diversity is also found to be a cause for concern in terms of practice and legal application. On the other hand, in South Africa, the study found out that consideration for diversity is one of the greatest strengths in CG practice and legal application, which is likely to contribute effectively to good and sound decision-making, reflective of all people. Weaknesses continue to be the delay in realisation of board equity in terms of gender while on the other hand, corruption and lack of adherence to retributive prescripts remain problematic.