An Integrated Analysis of the Corporate Governance Practices in Developing Countries.

1.0 INTRODUCTION
"Corporate Governance in Developing Countries " is a reality that is met with hindrances. Due
to competition in the global market, developing countries have made progress to curb obstacles
via statutory laws and corporate regulations. Hence, maximize and contribute to the global
economic market.

Different arguments have been achieved towards trying to justify commissions or omissions by
states individually on the core basis of corporate governance strategies, which acts as the
equilibrium of justification of actions among states to be able to regulate such.

1.1 DEFINITION
The General principle(s) of corporate governance, as understood by business professionals,
scholars and/or jurist may be summarized as:
“Corporate governance is the system of rules, practices, and processes by which a firm is directed
and controlled. Corporate governance essentially involves balancing the interests of a company's
many stakeholders, such as shareholders, senior management executives, customers, suppliers,
financiers, the government, and the community.”1

This research will look at specific case studies, while divulging in comparison, of what ideology
to be followed and/or discarded. To improve on the best practices that should be adopted.

2.0 HISTORICAL BACKGROUND

The Historical background is twofold:
 Most developing countries’ economic and corporate laws and policies were enforced by
their colonizers, mostly comprised Western Europe.
 Western Europe Industrialization revolution that started in the mid-18th Century,
introduced corporate strategies, which run concurrently with the revolution.2

3.0 STATEMENT PROBLEM

There have been several policies and principles achieved in the international community, and
adopted in specific jurisdictions. However, we see much that does not seem to encore adherence
to these set statutes, that geared to the improvement of better corporate governance practices
globally. What then would be the issue(s), and/or obstacles that seems to bring out rigidity towards
compliance?

4.0 JUSTIFICATION OF STUDY

1
Investopedia, ‘What Is Corporate Governance?’ (2022)
https://www.investopedia.com/terms/c/corporategovernance.asp accessed 12 September 2022

2
The Editors of Encyclopedia Britannica, ‘Industrial Revolution Timeline’
https://www.britannica.com/summary/Industrial-Revolution-Causes-and-Effects accessed 12 September 2022

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This study is justified on the basis that there are internationally recognized rules and principles
that support the relationship between states and corporates. Here specifically is for encoring best
practices of corporate governance within the developing countries. Analyzing corporate
governance practices internationally provides a clear insight into what to improve, adapt, and
discard in the best practices of corporate governance within developing countries.

5.0 OBJECTIVE OF THE STUDY

The general objective of the study is to examine corporate governance within developing states,
and what should be done to improve those practices.

Specific objectives are:

1. To be able to understand the definition and origin of corporate governance practices.
2. To see arguments by different authors, scholars, and jurists who have given an audience to
the aforesaid practices.
3. Look at the established statutes and principles that have been used internationally as the
guidelines for addressing corporate governance practices in developing states.
4. To postulate on the avenues that could be exploited that would act as guidelines to center
around best corporate governance practices.

6.0 RESEARCH QUESTIONS

This study seeks to answer the following questions:
1. What causes the need for good corporate governance practices?
2. What is the consensus and balance between maintaining the best practices of a specific
developing state, and observance of international law(s), policies, and recommendation(s)
of a good model corporate governance practices?
3. How and what are the achieved principles used as guidelines when interacting corporate
governance between developing and developed States?
4. To what extent does International law and regulations on best Corporate governance
practices observed?

7.0 Hypothesis
This research paper proceeds from the presumption that our current international society has not
fully been able to curb the issue of systemized good corporate governance practices. On basis of
different states’ sovereignty, and also the act of laying certain action(s) on the basis of principles
that would rather not encore overall global practices, but posit self-anticipatory actions,
consequently of the state’s individual interest.

8.0 Theoretical Framework

8.1 The Anglo-American Model
The above has various forms and different states have adopted either one of the forms or a hybrid
of all. They are three major forms namely: Shareholder Model, Stewardship Model, and Political
Model.3 This model traces back to the rise of capitalism in Western Europe, mainly the British

3
Lilian Miles ― “Transferring the Anglo American System to South Korea: At What Cost and Are there Alternatives”
(2008), Bond Law Review, 20, 2, 71 – 91

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Empire, and the formation of the East Indian Company later renamed the British East Indian
Company which was registered in India by Queen Elizabeth the first in 16004.

This article looks to dissect the ongoing shift, particularly as for the framework of adopting the
Anglo-American Model, from a developed state perspective to adopting what will suit the need of
an individual developing state, primarily in Africa. The primary intention is to decide how both
developed states, and developing states will respond, or have responded to this move, including
their contentions against changing foundational concepts of the models to suit developing States.

8.2 The Continental Model and Japan Model

The motivation behind this article is to give a concise examination of the above models, and their
consequential outcomes in developing countries. The basis of the above models and how it has
been converted into training so far. Specifically, the manner by which the prerequisites for best
corporate governance practices were used before, during, and after colonization of the developing
countries in mainly Africa and some parts of Asia. What is the conceivable future targets of using
this methodology? The article stresses the requirement for aggregate multilateral methodology in
securing the best practices of corporate governance in all developing countries.

9.0Literature Review
The literature review covers a wide array of books, journals, texts, newspaper articles, Unpublished
works, and various sources from the internet that deal with various concepts that relate to the
research topic. The texts reviewed to deal with internationally recognized statutes, they will be
able to portray principles that center around best corporate governance, and their applicability,
they will also be able to focus on the debate between the three models, it will as well voice
doctrines that emerged after the formation of the models. The argument on global law, policies,
and regulations will be heard.

10.0 Research Methodology

This research paper is based on desktop research method of collecting data. Further, it will focus
on qualitative analysis of information. It will deploy library based qualitative research
methodology plus online versions of takes and advice on the above.
This paper will also be based on both primary and secondary data. Primary data will include
various statutes, international and regional instruments while secondary data will include books
and articles.

11.0 Limitations
This paper is based on qualitative methods of research relying on statistics produced by other
researchers and organizations. Thus, all that is relied on might have overestimated or
underestimated the real circumstances. Lastly, the discussion here may not be exhaustive enough
hence open to criticism.

4
A Letter of Instructions from the East Indian Company to its Agent, circ. 1614 Author(s): W. G. Maxwell Published
by: Malaysian Branch of the Royal Asiatic Society Stable URL: http://www.jstor.org/stable/41561102 accessed 27
September 2019

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