Investigating the reasons and reporting practices related to corporate governance implementation by South African public companies

Abstract

This study investigates why South African public companies are often unwilling to commit unreservedly to the effective implementation of corporate governance, and to assess whether current reporting practices adequately reflect such implementation. The study was motivated by persistent corporate governance failures and high-profile scandals in South Africa, despite the country’s strong governance framework. This suggests that governance is frequently approached as a compliance exercise rather than as a mechanism for ethical leadership, accountability, and long-term sustainability. The study adopted a qualitative, interpretive research design. Data were collected through 12 semi-structured, in-depth interviews with company secretaries, legal officers, auditors, academics, and a governance specialist, mainly connected to the platinum mining sector in South Africa. The interview data were transcribed, coded, and analysed thematically using ATLAS.ti. The findings indicate that reluctance to implement corporate governance effectively is driven by a limited understanding of governance responsibilities, self-interest, short-term financial pressures, lack of enforcement, poor accountability, weak Board support, and a pervasive tick-box approach. The study represents original research and contributes to the limited body of research on the reasons for public companies’ resistance to effective corporate governance implementation and reporting and thus contributes to literature on stakeholder theory. It also offers practical recommendations for various stakeholders to strengthen governance practices through Board and board committee changes, enhanced reporting, the use of scorecards, encouraging whistleblowing, external company secretary appointments, independence and culture.