THE IMPORTANCE OF CORPORATE GOVERNANCE IN AN ORGANISATION, AND ITS IMPACT ON KEY STAKEHOLDERS

ABSTRACT
This research is centered on the Importance of corporate governance in an organization and its impact on key stakeholders. Using, Ghana Water Company Limited (GWCL) as the case study. In the research, data was gathered from a cross-section of the stakeholders of the company on the presence of effectiveness, participation, transparency and equity in the corporate governance system of the company.

This was followed with a trend analysis of the performance of the company over the three years ending 30th December, 2011. This was to determine whether the performance of the company reflected a good system of corporate governance in practice or otherwise. The findings of data collected from the stakeholders of the company indicated that the stakeholders were moderately convinced that there was the presence of the four basic tents of corporate governance in the corporate governance system practiced in the company. The result of the trend analysis however indicated a steep decline in the company’s performance in terms of growth and profitability over the three years ending 30th December, 2011.

The contradiction between the two findings tends to indicate that though the company has adopted an appropriate system of corporate governance (The Unitary Board Model), it is not strictly adhering to the practical requirements of that system. These finding appear to reflect the situation of many typical Ghanaian businesses.

DEDICATION
This project work is dedicated to my God Almighty, the source of all wisdom, knowledge and understanding and also the source of my strength, dedication and encouragement to carry out this study. Finally to Edem Komla Kumah my special one who has contributed immensely towards my project.

ACKNOWLEDGEMENT
The realization and completion of my study involved number of people. First and foremost, I remain grateful to God Almighty who through His infinite mercies made it possible for me to finish my work. May his name be glorified and honored eternally. Several individuals have made invaluable contribution to my project work. Foremost was my supervisor Mr. Festus Tsatsu, who took time of his heavy academic schedule to give me guidance, suggestions and corrections throughout the whole research work. I wish to express my profound gratitude to the staff of Ghana Water Company Limited for providing me with the necessary information needed for the research work especially Mr. Patrick K. Lartsey a staff member of GWCL. I am also grateful to my good friend and course mate Mr. Theo Amoah, Edem Komla Kumah my special one, my parents and my siblings for their assistance and support throughout the research work.

Finally, am most grateful to all lectures and staff of the school of arts and social science of the knowledge they impacted to me and all who have in one way or the other towards my studies and this research I say thank you and may the good Lord reward you abundantly.

CHAPTER ONE
INTRODUCTION

1.0 BACKGROUND TO THE STUDY
The King Report on Corporate Governance defines corporate governance as “the system by which companies are directed and controlled” the King Report (1995) Corporate Governance is one area of business studies that is fast attracting a lot of attention in recent times on both the local and international fronts. The collapse of corporate giants like Enron and World Com on the international front and the demise of the Bank for Housing and Construction and the Ghana Co-operative Bank as well as the recent crisis in Ghana Airways and several other corporate institutions in Ghana have heightened the interest in the concept and practice of the corporate governance system in Ghana as the engine of growth of corporate institution. In spite of the marked interest attached to the concept of corporate governance, it is poorly defined because it potentially covers a large number of distinct economic phenomenons. Generally it is multivariate concept which encompasses the functions of Board of Directors, management, audit committees, internal control structure, employees and shareholders in the governance of a corporate entity.

The corporate governance structure specifies the distribution of right and responsibilities among different participants in the corporation, such as the Board Managers, Shareholder and other Stakeholders, and spells out the rules and procedures for making decisions on corporate affairs” OECD (April 1999). This provides the corporation with the medium through which company objectives are set and performance is monitored. The definition of OECD is consistent with the Cadbury Committee’s Report definition, which narrowly views the concept, of corporate governance as the relationship of a company to its shareholders or, more broadly, as its relationship to society.
According to Mathiesen “Corporate Governance is a field in economics that investigates how to secure/ motivate efficient management of corporations by the use of incentive mechanisms such as contracts, organizational design and legislation.

This is often limited to the question of improving financial performance, for example, how the corporate owners can secure / motivate so that the corporate managers will deliver a competitive rate of return” Mathiesen (2002) In the view of Shleifer and Vishny, “Corporate governance deals with the ways in which suppliers of finance to corporations assure themselves of getting a return on their investment” The Journal of Finance, Shleifer and Vishny (1997, page 737). Perhaps the most appropriate definition with reference to Ghana is the one given by The Manual On Corporate Governance In Ghana; “Corporate governance refers to the manner in which the power of a corporation is exercised in the stewardship of a corporation’s total portfolio of assets and resource with the objective of maintaining and increasing shareholder value and respect of the legal right s of all stakeholders in the context of its corporate mission,” The Manual on Corporate Governance in Ghana (2000, page 5). Flowing from the definitions above and for the purposes of this research, the researchers adopted a working definition of corporate governance as being a system of ensuring that the internal and external stakeholders of a corporate entity are satisfied with the returns generated.

There are basically three types of corporate governance systems worldwide;
The Unitary Board Model
The Two – Tier Board Model
The Business Network Model
The corporate governance system practiced in Ghana falls under the Unitary Board Model

It can be deduced from the theory of corporate governance that any corporate entity with a standard version of any of the model of corporate governance system in practice should at least be viable and capable of achieving its corporate objectives and monitoring its performance. Most, if not all, the corporate entities (limited liability companies) in Ghana use some form of the Unitary Board model of corporate governance in managing their affairs. It stands to reason therefore that those institutions should be able to satisfy the expectations of their stakeholders in terms of returns. Ironically, the Ghanaian business environment is fraught with a high incidence of business failure and corporate fold ups. Interestingly, most of such collapsed institution obtained good reports from their demise. The collapse of the Bank for Housing and construction and the Ghana Co-operative Bank lend credence to this assertion.

This situation raises questions as to why such institutions collapse in spite of the existence of corporate governance system in those institutions and casts doubts on the suitability of the corporate governance system practiced in Ghana. The focus of this research is to determine the suitability of the corporate governance system practiced in Ghana to the well  being of corporate institutions in Ghana using Ghana Water Company Limited as a case study. For good healthy life, water is very essential for all living things. As the slogan of Ghana Water Company Limited reads “Water is Life”. GWCL is among one of the major utility providers in Ghana in considering Electricity, Telecommunication, Sanitation and Broadcasting services. Due to its large capital intensive needed to produce water, the government of Ghana and World Bank gives support to the production, rehabilitation and building of more treatment plant across the country. Examples are the Weija, Kpong, Barekese, Bukonor, etc.

Water supply systems were managed by the Hydraulic Division of Public Works Department (PWD) in the 1920’s. It later transferred to Ghana Water and Sewerage Corporation (GWSC) in 1965 by the enactment of Act 310, 1965 as a legal public utility entity. GWSC was responsible for water supply and sanitation in both rural and urban areas. However by the late 1980’s and early 1990’s, 33% of the water supply systems had deteriorated greatly or completely broken down due to inadequate funding s to carry out maintenance and rehabilitation. There was intervention by Government of Ghana and donors (World Bank, IDA, and GTZ) to improve water supply. Due to more development project, the Environmental Protection Agency (EPA) was established in 1994 to ensure that water operations did not cause any harm to the environment. The Water Resource Commission (WRC) was founded in 1996 to be in charge of overall regulation and management of water recourses utilization in 1997, the Public Utility Regulatory Commission (PURC) came into being with the purpose of setting tariffs and quality standards for the operation of public utilities.

With the passage of Act 564 of 1998, Community Water and Sanitation Agency (CWSA) was established to be responsible for management of rural water supply system, hygiene education and provision of sanitary facilities. GWSC was later converted to Ghana Water Company Limited with the Act 461 of 1993 as amended by LI 1648, on July 1, 1999. It was converted to a 100% state owned limited liability, Ghana Water Company Limited, responsible for urban water supply only.

Ghana embarked on partial privatization, this lead to the partnership with Aqua Vitens Rand Ltd (AVRL) from South Africa and Netherlands and signed a five (5) years contract on 22nd November 2005 for the urban water delivery. The contract was later abrogated by the government at the end of the five years in June 2011. Now it has been given to Ghana Urban Water Ltd (GUWL) to manage the operation of water delivery for a year.

The vision of GWCL is to provide portable water to all urban population in Ghana by the year 2015. Its mission is committed to meeting the increasing demand for better service delivery through efficient and effective management of its core business – production, transmission, distribution of water and customer management. It core values are quality customer service, dedicated service to the nation, high level of integrity, continuous improvement and innovation. Hence any research findings made on the company are reasonably applicable to all resident limited liability companies in Ghana.

For the purpose of this research, the governance system of GWCL was assessed in terms of the following classes to enhance our research; Board of Directors, Management, Audit Committees, Internal Control Structures, Employees, and Shareholders.

1.1 PROBLEM STATEMENT

Ironically, the Ghanaian business environment is fraught with a high incidence of business failure and corporate fold ups. Interestingly, most of such collapsed institution obtained good reports from their demise. The collapse of the Bank for Housing and construction and the Ghana Co-operative Bank lend credence to this assertion. This situation raises questions as to why such institutions collapse in spite of the existence of corporate governance system in those institutions and casts doubts on the suitability of the corporate governance system practiced in Ghana.

The main questions that come to the fore in this regard are as follows;

1. Why these corporate entities collapse or are collapsing in spite of the fact that they have a corporate governance system?

2. Is the corporate governance system in these corporate institutions suitable for the management of the affairs of these institutions?
The focus of this research is to determine the suitability of the corporate governance system practiced in Ghana to the well being of corporate institutions in Ghana using Ghana Water Company Limited as a case study.

1.2 MAIN OBJECTIVE
To evaluate the internal control, discover the component of the corporate governance system in Ghana Water Company Limited (GWCL).

1.3 SPECIFIC OBJECTIVES

Specifically the objectives of this study are:
1. To discover the components of the corporate governance system in Ghana Water Company Limited and their respective functions
2. To discover the strengths and weaknesses of the corporate governance system in Ghana Water Company Limited.
3. To discover the suitability or otherwise of the corporate governance system practiced in Ghana Water Company Limited, to the well being of the company.

1.4 RESEARCH QUESTIONS
1. How satisfied are you with your level of involvement and participation in the company’s strategic decision?
2. How do you feel that your activities are effective in achieving company objectives?
3. What is the level of openness on the part of management in their activities?
4. How often are you sensitized by management on the company’s operations?

1.5 SIGNIFICANCE OF THE STUDY
Numerous efforts have recently been initiated to enhance the effective operation and contribution of the corporate governance system in Ghana to the economic health and wellbeing of corporate institution in Ghana. The Significance of this research is to contribute in this regard by finding out the suitability or otherwise of the corporate governance system practiced in Ghana. This will help to identify some of the anomalies in the corporate governance system practiced in Ghana. This will help to identify some of the anomalies in the corporate governance system practiced in Ghana so that they can be corrected to help perfect the operation of the system. The research will also add, to the existing store of knowledge on the corporate governance system practiced in Ghana.

1.6 SCOPE
The research is limited to Accra East Region of GWCL with a total population of 432 staff. However the study can be linked to other financial institutions.

1.7 LIMITATIONS

i.

There are lots of constraints faced in conducting research.

ii.

First, inadequate finance to the researcher to undertake the project was a big problem. No funds to the researcher hence, I strained myself by financing the project work with my limited resources.

iii.

The time required for undertaking the research was short and combining the project with the academic work was hectic.

iv.

Another constraint associated with the study was the unwillingness of some staff of the Company to give necessary information which they considered to be secret and confidential. But I was able to convince them to give me some required information.

Even though the above limitations were encountered, the quality of the research work was not compromised.

1.8 ORGANISATION OF THE STUDY
The research was structured in the following five (5) chapters:
Chapter 1 – Introduction of the study, problem statement, main objective, specific objectives, research question, significant of study, scope, limitation and organization of the study.
Chapter 2 – Literature Review
Chapter 3 – Methodology
Chapter 4 – Data analysis and summary of major findings
Chapter 5 – Discussions of finding, recommendation and conclusion.

CHAPTER TWO
LITERITURE REVIEW
2.1 INTRODUCTION
The focus of this chapter is to answer the following questions, what is corporate Governance? How did it come about? What is its impact on key stakeholders in Ghana? These questions were addressed by reviewing literature on the concept of corporate governance under the following headings. Evolution & development of the concept of corporate governance on the international scene. Developments in Ghana. State of the practice of corporate governance in Ghana.

2.2 EVOLUTION AND DEVELOPMENT OF THE CONCEPT OF CORPORATE
GOVERNANCE ON THE INTERNATIIONAL SCENE.
The concept of corporate governance evolved in the wake of the emergence of Public Limited Liability Companies in the 19th century in the western world. The new Commercial institutions placed emphasis on a segregation of corporate owners from hired professional management teams. These teams run the affairs of the business on behalf of the corporate owners in return for remuneration. This segregation led to a high expectation of good stewardship from the business management by the business owners in terms of accountability and fairness for resources entrusted to them (Tweneboa, 2001). This resulted in the evolution of the concept of corporate governance in its simplest form. In the post industrial revolution era, the interests of other stakeholders a apart from immediate  business owners gained more prominence in the governance decisions of the business. For instance, employees became more involved in decision- making, the interests of creditor and other providers of finance to business became more important in operational decisions and directors became responsible for fundamental policy setting, whilst managers took charge of routine operations of the business.

The interests of customers, suppliers and the community at large also became more relevant in corporate decision making (King Report, 1995). This meant that the interest of all these other stakeholders had to be factored into the corporate governance system. Thus the modern version of corporate governance became a multivariate one, which covers a large number of distinct economic phenomena such as; board of directors, management, audit committees, employees, internal control structure and shareholders. This has resulted in the concept being defined in various ways depending on the Economic phenomenon to which the one defining the concept belongs, A cross –section of the definitions has been outlined in the first section of the previous chapter. These definitions of the concept can be classified under two perspectives viz the narrow perspective and the broad perspective. The narrow perspective looks at corporate governance as the ways in which suppliers of finance to corporate assure themselves of getting a stream of returns on their investments. This perspective relates to shareholder protection, management control and principal- agent problems.

In the broad perspective, corporate governance is viewed as the processes involved in the appropriate management of the company’s resources to the satisfaction of all stakeholders both internal and external. This perspective, also termed the stakeholder approach, spells out a direct relationship between the welfare of companies and that of all other stakeholders including the economy. This raises the need for co-operation between all stakeholders such as shareholders, professional management bodies, government and environmentalists in fostering transparent control, responsible corporate management teams and adequate shareholder right in the governance system of corporate entities. The two perspectives of corporate governance outlined in the presumption supra have informed the evolution of various models of corporate governance classified under three broad categories:

Unitary board model
Two –tier model
Business-network model

The unitary board model also known as the Anglo- Saxon approach uses a single board of directors comprising both executive and non-executive directors in varying proportions in its governance system. According to the Harvard Business School, this model is predicated upon shareholder democracy, the prevention of abuse of corporate power, the promotion of all locative efficiency through anti-trust laws that separates the interests of numerous stakeholders and the maintenance of the accountability of corporate managers to corporate owners through the board of directors. This model is used in Australia, Britain, Canada, USA, Hong Kong and other commonwealth countries.

The two-tier model, also known as the Continental European model, makes use of two boards: a management board and a supervisory board in its governance system. Under this model, the shareholders get closer to management. Employees and shareholders are well represented on the supervisory board which supervises the operations of the executives or management board on behalf of stakeholders. The model is the predominant basis of corporate governance in Germany, Holland, France and other countries in Continental Europe.

The business network model is also known as the Japanese model. This model reflects the cultural relationships seen in the Japanese keiretsu network in which boards tend to be large, predominantly executive and often ritualistic. This model makes use of few outside directors and to the extent that there are outside directors, they emanate from the same industry or are associated with that companies either through cross holding or in business. This model is the basis of corporate governance adopted in the Japanese corporate world. In recent times, the increasing spate of business failures in many parts of the world and the attendant adverse effects on national economies have compelled governments to act to ensure that corporate entities adhere to the basic tenets of good corporate governance.

Cases in point are the East Asian crisis in 1997/98, involving massive corporate failures, the collapse of Bank for Credit and Commerce in Britain, the failure of Barings, the fall of Enron, WorldCom and Xerox in the USA. These developments coupled with a fall in corporate profits and a stalemate of growth in the corporate world have led to the formulation of various codes of best practices of corporate governance by many countries and the organization of many international conferences aimed at disseminating the basic ideals of good corporate governance and encouraging companies to incorporate these ideals into their management systems. It is in this vein that many committees such as the Cadbury Committee in the United Kingdom and the King Committee of South Africa were established to fashion out basic ideals of corporate governance which could be adopted by the corporate entities in those countries in a bid to foster the practice of good corporate governance.

The following committees’ report on corporate governance is also worth noting. The Vienot Report (1995) from France.
The King Report (1994) from South Africa.
The Toronto Stock Exchange Recommendations on Canadian Board Practices (1995), The Peter’s Report (1997) from the Netherlands.
Report on Corporate Governance in Hong Kong from the Hong Kong Society of
Accountants (1996), Hong Kong.
The Commonwealth Association for Corporate Governance (1998). Organization of Economic Cooperation and Development, OECD principles of Corporate Governance. (1999).
Manual on Corporate Governance in Ghana (2000).
Several international conferences have been organized to deliberate on and disseminate The principles of good corporate governance propounded by these committees to the International corporate community. Cases in point are the Conference on “Corporate Governance for Sustainable Growth” held in Accra in 2001 with participants from Nigeria, Ghana, Cote D’ivoire, Europe and America 8 and the 10th International Anti Corruption Conference organised by Transparency International with the involvement of centre for International Private Enterprise (CIPE), USA. The conference whose theme was “Corporate Governance: An Antidote to Corruption” drew participants from Romania Russia, United State America, United Kingdom, Serbia, Ghana and the Organisation for Economic Cooperation and Development (OECD).

2.3 DEVELOPMENTS IN CORPORATE GOVERNANCE ON THE GHANAIAN FRONT
Many of the development on corporate governance on the international scene such as the moves to codify the basic principles of good corporate governance and the conferences, fora, workshops organized to inculcate of ideals of good corporate governance in corporate leaders have been replicated on the Ghanaian local front. Ghanaian businesses are compelled to practice good corporate governance to effectively compete on the global market. This is being enforced through regulation such as:
Companies code, 1963 (act 179); Securities Industry Law, 1993, (PNDCL 331); The Banking Law, 1989 (PNDCL 225);
Insurance Law, 1989 (PNDCL 277); and Ghana Stock Exchange Listing and Membership Regulations.

Compliance with these regulations is enforced by the following bodies:
Bank of Ghana
Securities and Exchange Commission
Insurance Commission
Ghana Stock Exchange
Internal Revenue Service
Registrar –General’s Department
Ministry of Private Sector Development

There are various codes and guidelines of best practices of corporate governance, Which complement the statutory regulations in fostering good corporate governance in Ghana? These include the OECD principle of good corporate governance, the South African King Report and the Commonwealth Association of Corporate Governance (CACG) guidelines which were used in compiling Ghana’s own Manual on corporate governance. Some international ogranisations have also sought to entrench the principles of good corporate governance in the Ghanaian corporate world by organsing and sponsoring research projects, conferences, fora and workshop to deliberate on the challenges of good corporate governance and strategies for overcoming these challenges. This is almost at entrenching a culture of good corporate governance in the Ghanaian corporate environment Some of these organizations are the Canadian International Development Agency (CIDA), the Africa Capital Market Forum (ACMF), Centre for International Private Enterprise (CIPE), Commonwealth Association of Corporate Governance (CACG) and the Organisation for Economic Co-operation and Development (OECD).

There are several organizations in the Ghanaian front, which cooperate with the statutory regulatory bodies and international bodies on corporate governance to entrench the culture of good corporate governance in Ghana. These organizations include:

Private Enterprises Foundation (PEF)
Institute of Directors (IoD-Ghana)
Institute of Economic Affairs (IEA)
Association of Ghana Industries (AGI)
Ghana Chamber of Commerce (GCC)

In 2000, a Manual on Corporate Governance and code of Conduct for Board of Director And Chief Executives in Ghana was sponsored by the International Finance Corporation and put together through the combined efforts of Carl Bro Management of Denmark, the Africa management service Company (AMSCO) of the Netherlands and FINTRA Consult of Ghana. The Manual contains recommended guidelines adapted from the OECD guidelines, principle of guidelines developed by the CACG, the South African King Report and other comments from stakeholders in Ghana. The Manual which adopted the stakeholder approach or broad perspective in defining corporate governance includes guidelines for the formulation of audit, remuneration, and governance committees among others, and recommends the training of board members.

In January 2001, the Centre for International Private Enterprise (CIPE) U.S.A in collaboration with the Institute of Economic Affairs (IEA) Ghana and the Development Policy Centre (DPC) Nigeria organised a conference on the theme “Corporate Governance For Sustainable Growth” in Accra. The conference brought together participants from Africa, Europe and America and sought to strengthen ties between participating organizations for developing strategies to strengthen corporate governance practices, policies and education at country and regional levels. During this conference, a report of a survey conducted by the Institute of Directors (IoD-G), which was presented, revealed that there is an increasing acceptance of good corporate governance practices by businesses in Ghana. It was at this conference that the Manual on Corporate Governance in Ghana was lunched.

In December 2002, the Africa Capital Markets Forum (ACMF) organized a forum in Accra on the theme” Corporate Governance and Corporate Corruption in Ghana” at which the various issues and challenges of corporate governance in Ghana were Extensively deliberated upon. At this forum, the ACNF also presented a project report of a research it had undertaken in collaboration with an advisory committee of business sector stakeholders on publicly listed companies, private companies and state enterprises to demonstrate the effectiveness of sound corporate governance practices in reducing the incidence of corruption. These developments have served to disseminate the basic tenets of good corporate Governance that is transparency, participation, effectiveness and equity, in the Ghanaian corporate world (Villars, 2002). This is evidenced by the findings of the survey by the IoD-Ghana in 2002 on the State of Corporate Governance in Ghana which revealed an Increasing level of acceptance of good corporate governance practices by businesses in Ghana.

2.4 STATE OF THE PRACTICE IN GHANA
The demise of Bank for Housing and Construction (BHC) and Ghana Co-operative Bank in the 1990’s served as a clarion call to corporate leaders in Ghana to espouse the principles of good corporate governance in their management systems. This drive has been enhanced by the existing legislations and codes of best practices such as the Companies Code, 1963 (Act179), the Securities Industry law 1993, (PNDCL 331), the Stock Exchange Listing and Membership Regulations and the Manual on Corporate Governance in Ghana. The enforcers of these regulations such as the Securities and Exchange Commission and the Ghana Stock Exchange have sought to ensure compliance with their demands for good corporate governance by compelling all companies under their jurisdiction to adhere to the provisions of their regulations on good corporate governance as a qualification for membership. A study by Private Enterprise Foundation, on “Corporate Governance and the Private Sector” which was conducted in 1999 and sponsored by the Canadian International Development Agency (CIDA) found that only a few companies in Ghana had the relevant structures, institutions and practices for good corporate governance as at the time.

In 2000, the Institute of Directors (IoD-Ghana), conducted a survey of some Organizations from the Association of Ghana Industries, Ghana’s top 100 companies and some state owned enterprises, to ascertain the current state of corporate governance practices in both the private and public sector of the country. The findings of the survey indicated that there is an increasing acceptance of good corporate governance practices by businesses in Ghana. The findings of the survey were discussed at a West Africa Regional Conference on corporate governance which was jointly organised by the CIPE, USA, IEA-Ghana and DPC-Nigeria as part of an assessment of the current state of the practice of corporate governance in Ghana. The conference identified the following factors as some of the constraints inhibiting good corporate governance in Ghana.

Outdated Companies’ Code Absence of appropriates laws, Conflict of interest and undue influence on the part of government. Inadequate management information system Trade union militancy, young and polarized private sector, lack of education / knowledge on part of stakeholders, lack of media and private sector interface and expertise, unreliability of auditor’s reports. Mistrust in the private sector, that is ethics and contracts are not enforced. Apathy on the part of stakeholders for example environmentalist and Shareholders. The conference also identified the following strategies to help address these constraints. Strengthening board capacity and capability by strengthening institutions such as the Institute of Directors, Private Enterprise Foundation, Association of Ghana Industries etc.

Increased public education and awareness using advocacy groups in society, financial journalists etc. Provision of funding for education of target groups and organization of training Programmer for trainers. Maintaining a good information pool and identifying methods for acquisition and Dissemination of information. Improvement of the regulatory framework by reviewing the Companies Code in line with modern trends, strengthening enforcement mechanisms through the provision of logistics and equipment and an adoption of Alternative Dispute Resolution (ADR) mechanism.

Creating an enabling environment by maintaining the political will to implement policies, adopting sound macroeconomic policies. Removing executive interference and ensuring an independent and courageous judiciary. On the whole, the efforts of numerous stakeholders in corporate governance have led to an increased acceptance of good corporate governance principles by Ghanaian businesses. However the challenges outlined need to be addressed with a concerted effort of all Stakeholders so as to improve and perfect the current state of corporate governance in the Ghanaian business world.

CHAPTER THREE
METHODLOGY
3.1 INTRODUCTION

This research began with a project proposal in the first chapter and a review of the evolution and development of the concept of corporate governance both in Ghana and on the international front in chapter 2. On the basis of the background to the study in the project proposal and the review of literature in the second chapter, the concept of corporate governance was identified as a multivariate concept with many components ranging from internal stakeholders such as shareholder’s, board of directors, management, internal control structures, audit committee and employees to external stakeholders such as suppliers, creditors, external auditors, customers, environmentalists and labour unions among others. Due to the limited time and resources available for the study, the method of research proceeded to operationalise the research topic by undertaking an analysis of six components of the corporate governance system in the company are :

Shareholders
Board of Directors
Management
Audit committee
Internal control Structure
Employees

The suitability of the overall corporate governance system of the company was measured By assessing the roles, rights and inputs of each component in the corporate governance system of the company. Four basic tenets of good corporate governance system were chosen as the underlying parameters for assessing the components of the corporate governance system of the company chosen for study. These were; effectiveness, transparency, participation and equity Data was collected on each component and the contribution of each component of the corporate governance system in the company was assessed by answering the following question.
i. To what extent does the component participate in corporate decisions of the company?
ii. How transparent are the operations of the component to stakeholders?
iii. How effective is the input of the component in corporate decision making?
iv. Is there equity in the considerations of the concerns of the component vis-à-vis those of other components in the corporate decisions of the company?

Good governance is a sine qua non for excellent company performance in terms of growth and profitability. The research therefore follows an assessment of the four basic tenets of last four years and an analysis of the organizational structure of the company.

3.2 RESEARCH DESIGN
The cross-sectional research design was employed. In this research .this research design required
i. Selection of sample of individual from a known population. ii. Collection of data in a standardized form through the use of questionnaires and interviews.

ii. Collection of data at a single point in time without any attempt to manipulate any variables. The nature of the research topic and the time available for the research made this research design the most appropriate one for conducting this research

3.3 RESEARCH POPULATION
The general population of this research is all resident limited liability companies in Ghana whilst the working population is Ghana Water Company Limited. For the purposes of this research, the corporate governance system of the working population (GWCL) was classified into the following components:

Board of Directors
Management
Internal Control Structure
Audit Committees
Employees

Board of Directors: it comprises both executive and non-executive directors of the Company who make the strategic corporate decisions of the company. Management, this is made up of all those in charge of the day-to-day operations of the company. It ranges from the chief executive officer and departmental heads to lines managers and supervisors.

Audit Committee: is a subcommittee of board of directors which collaborates with the auditors (mostly external) in facilitating their work and enforcing or implementing audit findings.

Internal Structure: Control this refers to the control environment, accounting system and control procedure sinstituted in the company to enhance the sustenance of the company’s operations in achieving corporate objectives.

Employees: these are the ordinary workers of the company who carry out the core business of the company on a routine basis. Shareholders; this comprises all those who own shares in the company. It is on these components that the research tools and instruments were applied so as to obtain Data for analysis.

3.4 SAMPLING
The stratified random sampling technique was used in sampling. The choice of this Technique enables the research capture variable proportions of each component of the Research population. This ensured that unique characteristics of the population were adequately reflected in the data collected. It also enhanced the control of probable disturbing Variances and guaranteed a reasonable representation of the various components of the Research population in the research process. The research tools and instruments were administered on a total sample of 80 people drawn from the working population of the research in the following proportion.

Board of directors

5

Management

15

Audit committee

5

Employees

20

Shareholders

30

Internal auditors

5

The number of respondents chosen from each component was determined by the size of the Component. The largest number of respondents (30) was chosen from shareholders who Constitutes the largest component in the company whereas only five (5) respondents were sampled from the board of directors which is the smallest component of the company.

3.5 DATA COLLECTION METHOD

The research employed both primary and secondary data collection techniques in data Collections.
Primary data collection
The research used the primary data collection instruments as the principal means for collecting data on the components of corporate governance system in GWCL. A Self administered questionnaire was the main tool used in the data collection. A Structured Interview schedule was also used in collecting data from respondents who were unable to fill the questionnaire on their own.

Secondary data collection.
Secondary data was collected through articles, manuals and all other forms of Literature on the corporate governance system of GWCL. These were obtained from the Company’s publications and other documented records obtained from the Public Relation Office of the company.

3.6 DATA ANALYSIS
Descriptive statistics were employed in the analysis of data collected for this research. Specifically, percentages were the major tool of analysis for this research. Financial ratios were also used in assessing the growth and profitability of the company. Inventory turnover Ratio and Total asset turnover ratio were employed in assessing the growth of the company, whereas Profit margin ratio, Return on asset ratio and Return on equity ratio were used in assessing its profitability.

3.7 LIMITATIONS OF THIS STUDY

The sample size for the study is eighty. This number was drawn from the various components of the corporate governance system of GWCL under study. The sample size of eighty out of over a thousand stakeholders in the corporate governance of the system of the company may not be reflective of all the variables of the research population .The study made use of only six components of the corporate governance system of GWCL limited, five of which are internal stakeholders. The study therefore lacks the input of the external stakeholders such as the external auditors, creditors, suppliers, and customers. Among others which were not incorporated into the sample size of the study.

The use of the cross-sectional research design required that data be collected at a single point in time without attempting to manipulate any variables. Consequently the data collected for the study is subject to bias from any conditions that might have existed in the company at the time of data collection. The research topic is one that pertains to the area of internal management issues which are mostly shrouded in secrecy in the Ghanaian business domain. Responses from top management could therefore be manipulated to paint a good picture of the corporate governance system in the company. Employees could also have falsified their responses in order to please management whereas shareholders who are disgruntled with the company’s leadership might have manipulated their responses so as to denigrate the management of the company.

CHAPTER FOUR
DATA ANALYSES AND SUMMARY OF MAJOR FINDINGS.

4.1 INTRODUCTION

The chapter deals with a presentation of the data collected for the research and an Analysis of the data. The analysis of this research is conducted under two sub groupings. The first part, an in depth analysis of the data collected from the research is undertaken to ascertain the degree of presence of the basic tenets of corporate governance in the corporate governance system of the company. Percentages are the main analysis tools under this sub group. The second part of the analysis involves a trend analysis of the growth and profitability of the company over the three-year period using the financial statements of the Company for the years ending 2010, 2009, 2008. Financial ratios are the main analytical tools used in the trend analysis.

a) Growth
√

Inventory turnover ratio

√

Total asset turnover ratio

b) Profitability
√

Profit margin ratio

√

Return on asset ratio

√

Return on equity ratio

This part also involves an analysis of the financial performance of the company using secondary data collected from the company’s records. The chapter will be concluded with a general analysis of the output of the two part of analysis aforementioned.

4.2 ANALYSIS OF THE PRESECENE OF THE BASIC TENETS OF CORPORATE GOVERNANCE IN GWCL.

The section analysis the data collected in the course of the research to ascertain the Degree of presence of the four basic tenets of corporate governance in the corporate governance system of the company. These tenets are:

√

Effectiveness

√

Equity

√

Participation

√

Transparency

The questionnaires were administered on following components of the system of GWCL.
√

Board of Directors

√

Management

√

Internal Control Structure /Internal auditors

√

Audit committees

√

Employees

√

Shareholders corporate

Governance

4.3 PRESENCE OF EFFECTIVENESS IN THE CORPORATE GOVERNANCE SYSTEM OF GWCL.
Data gathered on effectiveness of the corporate governance system of GWCL are summarized in the table below.

Effectiveness as a core pillar of good corporate governance relates to the ability of the company to deliver key outputs of the organization to its shareholders and other stakeholders.

Since profit is a key output of corporate organization, achieving good returns on investment in a socially responsible manner is a key component of business policy and corporate governance. Effectiveness demands an achievement of the targets on product quality and fair pricing 12.

The output of the table indicates that 10.7% of respondents are strongly convinced of the presence of effectiveness in the corporate governance system of the company and 45.8% are 29 moderately convinced in this regard. This indicates that a total of 56.5% of respondents comprising, both strong positive and positive class of responses, are convinced that the stakeholders, achieving good returns on investments in a socially responsible manner and achieving company targets on product quality and fair pricing. 36.6% of respondents are indifferent as to whether the company is effective in delivering its key output whilst 6.9% of respondents are not convinced about the company’s ability to effectively deliver its key output. The averagely large percentage of indifference and the greater proportion of positive responses as against a small proportion of negative response to this variable suggest that a good proportion of the respondents are convinced of the presence of effectiveness in the corporate governance system of the company. It must however be noted that a question testing effectiveness recorded a non-response rate of 50% from management.

4.4 PRESENCE OF PARTICIPATION IN THE CORPORATE GOVERNANCE
SYSTEM OF GWCL.

Participation relates to the involvement of key stakeholders in the company’s policy formulation and implementation. Management is expected to get employees involved in policy making especially in policies directly affecting them. This gives better results as it evokes a sense of belongingness and therefore a high degree of compliance. Effective participation is not always achieved by mere representation. Representatives must be well informed about issues to be discussed. They must feel free to make contribution fearlessly and honestly based on accurate information, problems, programmers’ and results. The output of the table indicates that 2.9% of respondents are strongly convinced about the presence of participation in the corporate governance system of the company whilst 48.5% of respondents are moderately convinced in this regard. 33.8% of respondents are indifferent as to whether the company is effective in getting key stakeholders effectively involved in its policy formulation and implementation whereas 14.8% are not convinced about the presence of participation as a basic tenet in the corporate governance system of the company.

The data points out that a total 51.4% of respondents comprising both strong positive and positive respondents constituting a little over half of the total respondent are convinced that the company is effective in informing key stakeholders on corporate operation, problems, programmes and results, enabling them feel free in making their contributions based on accurate information and getting them involved in company policy formulation and implementation.

PRESENCE OF TRANSPARENCY IN THE CORPORATE GOVERNANCE
SYSTEM OF GWCL.

Transparency is a key ingredient of every good corporate governance system. It is closely linked to participation. This variable requires openness on the part of management and Board of Directors. It also demands that the company’s internal and external publications are devoid of misleading or unreliable information. Thus the company should have formal structures for consultation and for sharing of information between management and employees and also between the Board of Directors and management.

The information gleaned from the data collected on the variable of transparency indicates that 18.4% of respondents are strongly convinced of the presence of transparency in the corporate governance system of the company whilst 51.5% of respondents are moderately convinced in this vein.

This indicate that a total of 69.9% of respondents comprising, both strong positive and positive class of responses, are convinced of openness on the part of management and Board of Directors in their transactions. They are also convinced of the accuracy and relevance of information contained in the internal and external publications of the company and the presence of formal structure for consultation and information sharing between management and employees and Board of Directors.

25% of respondents are indifferent as to the existence or otherwise of transparency in the corporate governance system of the company whereas 5.1% of respondents are neither convinced of openness on the part of management and Board of Directors in their transactions, the accuracy and relevance of information contained in the internal and external publications of the company nor the presence of any effective formal structures for consultation and information sharing between management and employees and management and Board of Directors. They attest to the presence of such structure but are convinced that they are ineffective and inadequate in fostering transparency in the corporate governance system of the company. The greater proportion of positive responses and the average percentage of indifference as against a smaller percentage of negative responses suggest that a good proportion of the respondents vouch for the presence of transparency in the corporate governance system of the company.

4.6 PRESENCE OF EQUITY IN THE CORPORATE GOVERNANCE SYSTEM OF GWCL

Equity is fourth critical aspect of good corporate governance examined in this research. Equity relates to fairness. It specifically deals with fairness in the board’s dealing s with management and employees. It also relates to fairness in the company’s dealing with other organizations especially smaller organizations. The concept of equity also applies to corporate operations, recruitment and rewards punishments.

One of the questions testing equity recorded a non-response rate of 25% from management whilst another question also testing equity recorded a non- response rate of 75% from management. That notwithstanding, 24.4% of the
respondents are strongly convinced about the existence of equity in the corporate governance system of the company whilst 48.7% are 34 moderately convinced in this regard. This shows that s total of 73.1% of respondents comprising both strong positive and positive responses, which constitutes close to two-thirds of the total responses, are convinced that fairness exist between Board of Directors and management, management and employees, and also fairness in the company’s dealings with smaller organizations as well as fairness in the company’s corporate operation, recruitment, and rewards punishment systems. 23.6% of the respondents are indifferent as to the presence of equity in the corporate governance system, it the company, whilst a paltry 3.3% are not convinced about the presence of equity in the corporate governance system of the company.

4.7 AGGREGATE FINDINGS ON THE VARIOUS VARIABLES OF THE CORPORATE GOVERNACNE SYSTEM OF GWCL

From the table, 13.9% of the respondents are strongly convinced about the presence of the four basic tenets of corporate governance system of GWCL, whilst 48.7% of total respondents are moderately convinced in the vein.

This implies that total of 62.6% of the respondents are convinced that the company is operating a good corporate governance system. 29.8% of the respondents are indifferent as to whether the company’s corporate governance system contains the basic tenets of good corporate governance. This means that 29.8% of total respondents are unable to tell if the company has good corporate governance system or not. Several reasons can account for this it could be that these respondents are unable to identify the four basic tenets for good corporate governance at play in the Governance system of the company. It could also be that these respondents view the corporate governance system in practice in the company as lying in the median position on a scale of corporate governance. 7.6% of the total respondents are not convinced about the presence of the four basic tenets of good corporate governance in the corporate governance system practiced in the company.

This clearly indicates that a large proportion of the respondents are convinced that the company is using a good corporate governance system. This proportion of positive responses is dominated by moderate positive response. Thus the greater proportion is moderately convinced about the existence of good corporate governance system in the company.

NON –RESPONSE ERRORS

Target response average of the non response errors is 28.75%. This could have a disturbing effect on the data collected and the resulting findings obtained from the analysis of the data. Non-respond error (%) = Target response – Actual response x 100 Target response
= 80 -57 x100 = 28.75%

4.8 FINANCIAL ASSESSMENT OF GWCL.

The ratios obtained for the three years indicate an increasing performance in terms of growth. For example, the rate at which stock was turned over increased by 7.89% in 20010 compared to the stock turnover of 2008. The stock turnover of 2009 however reduced by 7.49% compared to that of 2008. The reduction in 2009 compared to that of 2008 could be as a result of a reduction of 0.11% in the company’s major leakages of lines and announcement expense and a decrease of 0.67% in repairs and installation of lines expenses in 2009. This suggests that the company is relenting on its effort to sell its product.

Total asset turnover also increased by 0.13% in 2008 compared to that of 2009 whilst that of 2010 increased by 0.14% compared to the total asset turnover 2009. This indicates an upward trend in the growth of the company over the three years ending 2010. Performance in terms of profitability was also observed to be on a continuous increase over the three years ending 2010.

The profit margin ratio of the company increased slowly from year to year during the three years under review. From 0.66%, 0.67% and 0.71% respectively. The return on asset ratio of 2009 declined by 37.5% compared to that 2008 whilst that of 2010 also reduced by 133.3% compared to the return on asset ratio of 2009.

The return on equity ratio of 2009 reduced by 0.076% over that of 2010 whilst the return on equity ratio of 2009 reduction by over that of 2010.
The ratios calculation for three years indicates a steep increase in the profitability of the Company over the three years.
The overall trend analysis of the company for the three years ending 2010 indicates a improvement in the performance of the company.
The publications of the company disclosed that the company had recorded a profit of GH ¢ 46,465,000 in the year ending 2010.

CHAPTER FIVE
DISCUSSIONS OF FINDING, RECOMMENDATIONS AND CONCLUSION.

5.0 INTRODUCTION
This chapter draws the curtains on the research with a summary of the research findings, Recommendation and Conclusion based on the research findings.

5.1 DISCUSSIONS
An analysis of the primary data collected for the research seems to point out a presence of the four basic tenets of corporate governance listed in the objectives supra, of the corporate governance system of the company. A total of 62.6% of respondents subscribed to this view whilst 37.4% of total respondent were either not convinced about the presence of the four tenets of good corporate governance in the company.

An analysis of the data collected from the publications and the company accounts for the three years ending 2010 clearly depicts a steep decline in the company’s performance in terms of growth and profitability.

RECOMMENDATIONS

The following recommendations are worthy of note in the light of the discoveries made in the course of the research. The company should adopt a more strategic orientation in its management by adopting effective consultation and sharing of information with employees and other stakeholders and a strategic purchasing policy. This would enable the company overcome the problems of shortage of cocoa beans, industrial unrest and other external threats to the success of the company in terms of financial performance.

The company should strive to adhere strictly to the demands of the model of corporate governance it has espoused as far as practicable. Management should improve the profitability of the company by reducing the cost of goods sold and the selling, general and administration expenses.

Further research should also be undertaken using a larger span of company’s operations (at least ten years) to discover a more realistic picture of the company’s performance.

5.2 A CONCLUSION
Perusal of the findings of the research seems to establish a contradiction between the implications of the findings from the analysis of data collected from the questionnaires and structured interviews as against that of the trend analysis of financial reports. The analysis of the primary data obtained clearly indicates that the company is practicing a good system of corporate governance. Naturally, this should result in a good financial performance of the company. However the findings of the analysis of the publications of the company’s account depict a fast plummeting performance of the company in terms of growth and profitability. The industrial unrest by unionized workers in April and June 2010, which management blamed on the failure of employees to follows laid down procedures for seeking redress, does not lend support to the views of the respondents who are convinced of the presence of effective participation (5.1.4%) and transparency (69.9%) in the corporate governance system of the company.

From the above analysis through there exists a good corporate governance system its inability to be translated into growth and profitability signals that the system is not suitable for the well being of the company and therefore not suitable for Ghanaian corporate institutions. It must however be noted that the trend analysis used is just for three years ending 2010 of the company’s operation and might therefore not be a representative performance of the company.

REFERENCES
The Ghanaian BANKER, 3RD Quarter, July –September2002. Vol. X No.3pp3

The Ghana Water Company Limited Operational Report for September 2010 Aka, Jean (2001-2002).

Auditing and Corporate Governance”, Legon Business Journal, Volume 1, Issue 2, pp 12-15

Attah Kweku, “The Need for Good Corporate Governance’ The Ghanaian Banker, 3rd

Harvard Business School Publications on Corporate Governance, N9-292-012 African Capital Markets Forum “Corporate Governance and Corporate Corruption in Ghana’’ (2002).
7. African Capital Markets Forum, “Fighting Corporate Corruption with Effective Corporate Governance”, (Dec2002), Accra.

Organisation for Economic Cooperation and Development ,(April,1999) The King Report on Corporate Governance (1995,pp1)
The Manual on Corporate Governance in Ghana (2000,pp5)
Centre For International Private Enterprise /Institute Of Economic Affairs, West Africa 2002.
Tweneboah, Francis D.”Corporate governance in Ghana Issue and Challenges”, African Capital Markets Forum Publications, (December 2002), Accra. Villars, Elizabeth “Adopting A Code of Best Practices For Corporate Governance in Ghana” African Capital Markets Forum Publications, (December2002).Accra

Annual Report and Accounts, 2008 Ghana Water Company Limited (2008), Accra East Region.
Annual Report and Accounts, 2009 Ghana Water Company Limited (2009), Accra East Region.
Annual Report and Accounts, 2010 Ghana Water Company Limited (2010), Accra East Region.
Daily Graphic, 2005 Tuesday March 29th.
Mensah Sam. “Corporate governance in Ghana issues and challenges”, African Capital Markets Forum (December 2002), Accra.
Mensah, Sam. “Corporate governance an antidote to corruption – The case of Africa”, Center for International Private Enterprise Publications (2002). Triratvorakul Prasarn “Challenges of Good Governance: Accountability and rule of Law”. Hyde, (September 2000) “Effective Corporate Governance: The Role of the Director. The Professional Accountant”, pp23.

Ross, Westerfiled, Jordan (2001). “Essentials of Corporate Finance” (3rd Edition.).New York: McGraw-Hill/Irwin Publications.
IIA Conference Abu Dhabi 13 April 2010.

APPENDIX
QUESTIONNAIRE ON CORPORATE GOVERNACE IN GHANA.

The aim of this questionnaire is to help ascertain the importance of corporate governance in an organization and its impact on key stakeholders in Ghana using Ghana Water Company Limited as the case study.

This is to be submitted to Regent University College of Science and Technology Accra, School of Art and Social Science for academic purpose.
Please note that this exercise is for academic purpose and all responses will be given confidential treatment
BOARD OF DIRECTORS/AUDIT COMMITTEE
1. Are you satisfied with your level of involvement and participation in the company‘s strategic decision?
i) Very satisfied
ii) Satisfied
iii) Somewhat
iv) Dissatisfied
v) Very Dissatisfied
2. Do you feel that your activities are effective in achieving company objectives? i) Yes
ii) Sometimes
iii) Seldom
v) No
3. Are you satisfied with the level of openness on the part of management in their activities .
i) Very satisfied
ii) Satisfied
iii) Somewhat
iv) Dissatisfied
v) Very Dissatisfied
4. Are you satisfied with the level of consultation and sharing of information between you and management ?
i) Very satisfied
ii) Satisfied
iii) Somewhat
iv) Dissatisfied
v) Very Dissatisfied
5. Do you think that your contributions are reflected in company policy
formulation?
i) Yes
ii) Sometimes
iii) Hardly
iv) Never
6. Are you satisfied with the level of fairness exercised by the company in its recruitment exercises
i) Very satisfied
ii) Satisfied
iii) Somewhat
iv) Dissatisfied
v) Very Dissatisfied
7. Are you satisfied with level of fairness exercised by the company in its dealings with outside organization especially smaller organizations?
i) Very satisfied
ii) Satisfied
iii) Somewhat
iv) Dissatisfied
v) Very Dissatisfied
8. Are you satisfied with the company’s pattern of profit growth?
i) Very satisfied
ii) Satisfied
iii) Somewhat
iv) Dissatisfied
v) Very Dissatisfied
9. Are you satisfied with the role of the audit committee in facilitating the work of the auditors?
i) Very satisfied
ii) Satisfied
iii) Somewhat
iv) Dissatisfied
v) Very Dissatisfied
10. Are you satisfied with the level of fairness in the audit committee’s
dealings with management and employees?
i) Very satisfied
ii) Satisfied
iii) Somewhat
iv) Dissatisfied
v) Very Dissatisfied
11. Are you satisfied with the level of co-operation and information sharing between the audit committee and the internal auditors?
i) Very satisfied
ii) Satisfied
iii) Somewhat
iv) Dissatisfied
v) Very Dissatisfied
12. How will you rate the performance of the audit committee?
i) Very effective
ii) Effective
iii) Ineffective
iv) Very ineffective

QUESTIONNAIRE ON CORPORATE GOVERNACE IN GHANA.
The aim of this questionnaire is to help ascertain the importance corporate governance in an organization and its impact on organization key stakeholders in Ghana using Ghana Water Company Limited as the case study.

This is submitted to Regent University College of Science and Technology Accra, School of Art and Social Science.
Please note that this exercise is for academic purpose and all responses will be given confidential treatment

EMPLOYEES
1. Are you satisfied with your level of involvement and participation in
company decisions.
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v.Very dissatisfied
2. Do you think that your suggestions are considered by management in company decisions? i. At all times
ii. Sometimes
iii. Hardly
iv. Never
v. Others specify………………………………
3. Are you satisfied with the level of fairness exercised by the company in Recruitment and promotion of employees?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very Dissatisfied
4. Are you satisfied with the level of fairness in the rewards and punishment of employees? i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
5. Are you satisfied with the level of fairness exercised by the company in its dealings with outside organization especially smaller organizations?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v.Very dissatisfied
6. Are you satisfied with the level of accuracy and relevance reflected in the Company’s internal and external publications?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v.Very dissatisfied
7. How will you assess the level of reliability of the company‘s internal and external publications?
i. Very reliable
ii Reliable
iii. Sometimes
iv Unreliable
v. Very Unreliable
8. How often are you sensitized by management on the company’s operations? i. At all times
ii. Sometimes
iii Hardly
iv. Never
9. Dose the company’s product pricing reflect quality at all times?
i. All the time
ii. Seldom
iii Sometimes
iv Never
10. Are you satisfied with your contribution to be achievement of the company’s objectives?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v.Very Dissatisfied
11. Are you satisfied with the quality of the company’s product? i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied

QUESTIONNAIRE ON CORPORATE GOVERNACE IN GHANA.
The aim of this questionnaire is to help ascertain the importance of corporate governance in an organization and its impact on key stakeholders in Ghana using Ghana Water Company limited as the case study.

This is submitted to Regent University College of Science and Technology Accra, School of Art and Social Science for academic purpose.
Please note that this exercise is for academic purpose and all responses will be given confidential treatment
MANAGEMENT
1. Are you satisfied with your level of involvement /participation in the company’s strategic decisions?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
2. Do you feel that your routine activities are effective in achieving company objective? i. Yes
ii. Sometimes
iii. No
iv. Other specify…………………………………..
3. Are you satisfied with the level of openness on the part of the board of directors in their activities?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
4. Are you satisfied with the level of consultation and sharing of information between you and board of directors?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
5. Do you think that your contributions are reflected in company policy formulation and implementation?
i. Yes
ii. Sometimes
iii. No
iv. Other specify…………………………………..
6. Are you satisfied with the level of fairness in the rewards and punishment of management ?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
7. Are you satisfied with the level of fairness exercised by the company in its dealings with outside organization especially smaller organizations?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfiedv. Very dissatisfied
8. Are you satisfied with the level of accuracy and relevance reflected in the company’s internal and external publications?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
9. How often do you sensitive and involve your employees in decision making and company operations?
i. All the times
ii. Sometimes
iii. Never
10. Are you satisfied with the company’s pattern of growth?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
11. Are you satisfied with the level of equity in the treatment given to you and your colleagues by the company?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
12. Does the company comply strictly with their mandatory statutory regulations?
i. Yes
ii. Sometimes
iii. Seldom
iv. No

QUESTIONNAIRE ON CORPORATE GOVERNACE IN GHANA.
The aim of this questionnaire is to help ascertain the importance of corporate governance in an organization and its impact on key stakeholders in Ghana using Ghana Water Company Limited as the case study.

This is submitted to Regent University College of Science and Technology Accra, School of Art and Social Science for academic purpose.
Please note that this exercise is for academic purpose and all responses will be given confidential treatment
INTERNAL AUDTITORS
1. Are you satisfied with the attention given to audit reports in corporate decisions?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
2. Are you satisfied with the adequacy of the company’s internal controls in safeguarding company’s property?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
3. Are you satisfied with the level of openness on the part of management and board of directors in their activities?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
4. Are you satisfied with your level of participation in strategic decisions in the company?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
5. Are you satisfied with the level of accuracy and relevance reflected in the company’s internal and external publications?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
6. Are you satisfied with the level of effectiveness of company’s internal controls?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
7. Are you satisfied with the level of fairness exercised by the company in its dealings with outside organization especially smaller organizations?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied
8. Are you satisfied with the level of fairness in the rewards and punishment system In the company?
i. Very satisfied
ii. Satisfied
iii. Somewhat
iv. Dissatisfied
v. Very dissatisfied

QUESTIONNAIRE ON CORPORATE GOVERNACE IN GHANA.
The aim of this questionnaire is to help ascertain the importance of corporate governance in an organization and its impact on key stakeholders in Ghana using Ghana Water Company limited as the case study.

This is submitted to the Regent University College of Science and Technology Accra, School of Art and Social Science for academic purpose.
Please note that this exercise is for academic purpose and all responses will be given confidential treatment

SHAREHOLDERS
1. How often do you attend Annual General Meeting of the company when you are invited to do so?
i) All the time
ii) Hardly
iii) Sometimes
2. Do you vote at the annual general meeting during important decisions making such as appointment of directors and auditors.
i) Yes
ii) Sometimes
ii) No
iv) Others specify……………………………..
3. Are you satisfied with the level of fairness exercised at the Annual General Meeting? i) Very satisfied
ii) Satisfied
iii) Somewhat
iv) Dissatisfied
v) Very dissatisfied
4. Are you satisfied with the level of transparency exercised at the Annual General Meeting during decision making?
i) Very satisfied
ii) Satisfied
iii) Somewhat
iv) Dissatisfied
v) Very dissatisfied
5. Do you feel free to make your contribution at the Annual General Meeting? i) Yes
ii) Sometimes
iii) No
iv) Others specify……………………………………………………………….
6. Do think management acts in the interest of the shareholders at all times?
i) Yes
ii) Sometimes
iii) No
7. Are you satisfied with the company’s pattern of profitability and growth? i) Very satisfied
ii) Satisfied
iii) Somewhat
iv) Dissatisfied
v) Very dissatisfied
8. How will you assess the level of reliability of the company’s external publications? i) Very reliable
ii) Reliable
ii) Sometimes
iv) Unreliable
v) Very Unreliable