Ethical and Corporate Governance Challenges that Rocked the Zimbabwean Financial Sector Between 2003- 2008

The purpose of this paper was to discuss the ethical and corporate governance challenges that rocked the Zimbabwean financial sector between 2003-2008. The paper has also evaluated the measures that were taken by the Reserve Bank of Zimbabwe (RBZ) to try and address the challenges. It also explored...

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Main Authors: Costain Mukanganiki, Gabriel Maibvisira, Precious Kandufu
Other Authors: ( Business Consultant). Costain holds a B. Com in Business Management, Master of Commerce in Strategic Management & Corporate Governance and is currently studying PhD.
Format: research article
Language:English
Published: International Journals Of Multidisciplinary Research Academy 2022
Subjects:
Online Access:https://cris.library.msu.ac.zw//handle/11408/5334
http://www.ijmra.us
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author Costain Mukanganiki
Gabriel Maibvisira
Precious Kandufu
author2 ( Business Consultant). Costain holds a B. Com in Business Management, Master of Commerce in Strategic Management & Corporate Governance and is currently studying PhD.
author_facet ( Business Consultant). Costain holds a B. Com in Business Management, Master of Commerce in Strategic Management & Corporate Governance and is currently studying PhD.
Costain Mukanganiki
Gabriel Maibvisira
Precious Kandufu
author_sort Costain Mukanganiki
collection DSpace
description The purpose of this paper was to discuss the ethical and corporate governance challenges that rocked the Zimbabwean financial sector between 2003-2008. The paper has also evaluated the measures that were taken by the Reserve Bank of Zimbabwe (RBZ) to try and address the challenges. It also explored whether the measures were sufficient in nature and adequate in degree. The research adopted the case study design by citing cases of financial institutions which collapsed or faced near closure due to the numerous corporate lapses experienced in the sector. Data collection was through desk research and analysis was qualitative judgmental sampling and this was used to select all the cases cited in this paper. Findings clearly indicated that in all cases where ethical and corporate governance challenges were highly reflected, either the chief executive officer or chairman wielded disproportionate power in the board. This unfettered power rose from major shareholding which overshadowed the significance of other directors in the institutions. It came out clear that after liberalisation of the sector in the 1990s, an environment was created in which the Zimbabwean financial services industry could thrive, and where excessive risk taking and an adventurous business culture was embraced. Not only was this embraced by government, and industry, Zimbabwean society as a whole also participated. The measures taken by the central bank were a welcome development despite them being sort of voluntary. The way (forceful in nature) through which the central bank engaged in reigning in offenders was necessary at the time.
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spelling ir-11408-53342022-12-21T12:26:15Z Ethical and Corporate Governance Challenges that Rocked the Zimbabwean Financial Sector Between 2003- 2008 Costain Mukanganiki Gabriel Maibvisira Precious Kandufu ( Business Consultant). Costain holds a B. Com in Business Management, Master of Commerce in Strategic Management & Corporate Governance and is currently studying PhD. (Lecturer) in the department of Graduate School of Business Leadership at Midlands State University, Zimbabwe. Gabriel holds a B.Com (Hons) degree in Marketing, Diploma in Business Leadership, Master of Commerce in Strategic Management & Corporate Governance degree and is currently doing a PhD degree. (Lecturer) in the department of Commerce at Midlands State University, Zimbabwe. Precious holds a Bachelor of Commerce in Business Management, Master of Commerce in Strategic Management & Corporate Governance degree and currently studying for her PhD degree. Ethical challenges Corporate governance challenges Insider lending Board composition and interdependence. The purpose of this paper was to discuss the ethical and corporate governance challenges that rocked the Zimbabwean financial sector between 2003-2008. The paper has also evaluated the measures that were taken by the Reserve Bank of Zimbabwe (RBZ) to try and address the challenges. It also explored whether the measures were sufficient in nature and adequate in degree. The research adopted the case study design by citing cases of financial institutions which collapsed or faced near closure due to the numerous corporate lapses experienced in the sector. Data collection was through desk research and analysis was qualitative judgmental sampling and this was used to select all the cases cited in this paper. Findings clearly indicated that in all cases where ethical and corporate governance challenges were highly reflected, either the chief executive officer or chairman wielded disproportionate power in the board. This unfettered power rose from major shareholding which overshadowed the significance of other directors in the institutions. It came out clear that after liberalisation of the sector in the 1990s, an environment was created in which the Zimbabwean financial services industry could thrive, and where excessive risk taking and an adventurous business culture was embraced. Not only was this embraced by government, and industry, Zimbabwean society as a whole also participated. The measures taken by the central bank were a welcome development despite them being sort of voluntary. The way (forceful in nature) through which the central bank engaged in reigning in offenders was necessary at the time. 4 4 1 13 2022-12-21T12:26:14Z 2022-12-21T12:26:14Z 2014-04 research article https://cris.library.msu.ac.zw//handle/11408/5334 http://www.ijmra.us en International Journal of Management, IT and Engineering 2249-0558 open International Journals Of Multidisciplinary Research Academy
spellingShingle Ethical challenges
Corporate governance challenges
Insider lending
Board composition and interdependence.
Costain Mukanganiki
Gabriel Maibvisira
Precious Kandufu
Ethical and Corporate Governance Challenges that Rocked the Zimbabwean Financial Sector Between 2003- 2008
title Ethical and Corporate Governance Challenges that Rocked the Zimbabwean Financial Sector Between 2003- 2008
title_full Ethical and Corporate Governance Challenges that Rocked the Zimbabwean Financial Sector Between 2003- 2008
title_fullStr Ethical and Corporate Governance Challenges that Rocked the Zimbabwean Financial Sector Between 2003- 2008
title_full_unstemmed Ethical and Corporate Governance Challenges that Rocked the Zimbabwean Financial Sector Between 2003- 2008
title_short Ethical and Corporate Governance Challenges that Rocked the Zimbabwean Financial Sector Between 2003- 2008
title_sort ethical and corporate governance challenges that rocked the zimbabwean financial sector between 2003- 2008
topic Ethical challenges
Corporate governance challenges
Insider lending
Board composition and interdependence.
url https://cris.library.msu.ac.zw//handle/11408/5334
http://www.ijmra.us
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AT preciouskandufu ethicalandcorporategovernancechallengesthatrockedthezimbabweanfinancialsectorbetween20032008