Corporate governance is a fundamental aspect of business operations, providing a framework

for effective decision-making and accountability within organizations. It encompasses

various principles and practices aimed at ensuring transparency, integrity, and responsible
management. The six pillars of corporate governance are widely recognized as key elements
for maintaining an ethical and sustainable business environment. In this discussion, I will
analyze the application of these pillars in a listed company or organization in Zimbabwe.

One example of a listed company in Zimbabwe that can be examined in the context of
corporate governance is Delta Corporation Limited. Delta Corporation is a leading beverage
manufacturer and distributor in the country. Let's explore how the six pillars of corporate
governance apply to this organization:

1. Transparency and Disclosure: Delta Corporation should emphasize transparency by

providing accurate and timely information to its shareholders, investors, and other
stakeholders. This includes disclosing financial statements, corporate policies, and
any material information that could impact the company's performance.
2. Accountability: The company should establish clear lines of accountability throughout
its organizational structure. This involves defining roles and responsibilities,
implementing effective internal controls, and holding individuals accountable for their
actions. Delta Corporation should have a board of directors that acts in the best
interests of the company and its stakeholders.
3. Fairness and Equity: Delta Corporation should ensure fair treatment of both minority
and majority shareholders. This can be achieved by avoiding conflicts of interest,
providing equal access to information, and promoting fair decision-making processes.
The company should have mechanisms in place to address any grievances or concerns
raised by its shareholders.
4. Responsibility and Ethics: Delta Corporation should operate in an ethical and socially
responsible manner. This includes adhering to legal and regulatory requirements,
promoting sustainable practices, and considering the interests of various stakeholders
such as employees, customers, and the community. The company should have a code
of conduct that guides ethical behavior and promotes a positive corporate culture.
5. Board Independence: The board of directors of Delta Corporation should consist of
independent directors who are not directly affiliated with the company. This helps
ensure unbiased decision-making and oversight. Independent directors can provide
objective viewpoints and safeguard the interests of shareholders.
6. Corporate Performance and Strategic Direction: Delta Corporation should focus on
delivering sustainable long-term performance and defining a clear strategic direction.
This involves setting realistic goals, monitoring performance metrics, and regularly
reviewing and updating the company's strategy. The board should work closely with
management to ensure effective execution of the strategy.

By adhering to these six pillars of corporate governance, Delta Corporation can enhance its
reputation, attract investors, and foster long-term success. It is important to note that the
effectiveness of corporate governance practices may vary depending on the specific context
and challenges faced by the company. Therefore, continuous evaluation and improvement of
these practices are essential for ensuring their relevance and effectiveness.
 1. Transparency and Disclosure: In the case of Delta Corporation, transparency can be
demonstrated through regular and comprehensive financial reporting. The company
should provide detailed financial statements, including balance sheets, income
statements, and cash flow statements. Additionally, Delta Corporation should disclose
any material information, such as significant contracts, investments, or risks, that
could impact the company's performance or the decision-making of stakeholders.
2. Accountability: Delta Corporation's accountability can be reinforced through the
establishment of an effective internal control system. This system should ensure that
financial and non-financial transactions are properly authorized, recorded, and
monitored. Regular internal and external audits can help assess the adequacy and
effectiveness of the control system. The board of directors should hold management
accountable for achieving strategic objectives and complying with legal and
regulatory requirements.
3. Fairness and Equity: Delta Corporation can promote fairness and equity by treating all
shareholders equally and providing them with equal access to information. This
includes ensuring that all shareholders have the opportunity to participate and vote at
general meetings. The company should also establish procedures for addressing
conflicts of interest and related-party transactions to prevent any preferential
treatment that may disadvantage minority shareholders.
4. Responsibility and Ethics: Delta Corporation should operate responsibly and ethically,
taking into account the impact of its activities on various stakeholders. This includes
adhering to environmental, social, and governance (ESG) principles. The company
can adopt sustainable practices such as energy efficiency, waste reduction, and
responsible sourcing. Delta Corporation can also establish a corporate social
responsibility (CSR) program to contribute positively to the communities in which it
operates.
5. Board Independence: The independence of Delta Corporation's board of directors is
crucial for effective corporate governance. Independent directors should not have any
personal or financial relationships that could compromise their objectivity. They play
a key role in overseeing management, evaluating performance, and making strategic
decisions. Their independence helps ensure that the board acts in the best interests of
the company and its shareholders.
6. Corporate Performance and Strategic Direction: Delta Corporation should focus on
achieving sustainable long-term performance. This involves setting clear goals and
performance targets, monitoring key performance indicators (KPIs), and regularly
reviewing and updating the company's strategy. The board of directors should provide
guidance and oversight to management to ensure that the strategy is effectively
implemented and aligned with the company's vision and purpose.

It is worth noting that the Zimbabwe Stock Exchange (ZSE) has its own corporate
governance guidelines that listed companies are expected to follow. These guidelines provide
additional recommendations and requirements to enhance corporate governance practices in
Zimbabwe.

By embracing and implementing these pillars of corporate governance, Delta Corporation can
build trust with its stakeholders, attract investment, and contribute to the sustainable growth
of the company and the Zimbabwean economy as a whole
Stakeholder Engagement: Delta Corporation should actively engage with its stakeholders, including
employees, customers, suppliers, and the local community. This involves maintaining open channels
of communication, seeking feedback, and considering stakeholder interests in decision-making
processes. Regular stakeholder engagement helps build trust, fosters long-term relationships, and
enables the company to address concerns and expectations effectively.

By incorporating these additional aspects into its corporate governance practices, Delta
Corporation can strengthen its overall governance framework, enhance stakeholder trust, and
mitigate risks. It is important for the company to regularly review and update its governance
practices to adapt to changing regulatory and business environments and to align with
emerging best practices in corporate governance.

These elements collectively contribute to building a solid foundation for corporate

governance in a listed company in Zimbabwe, enabling it to operate ethically, maximize
shareholder value, and contribute to sustainable economic growth.

: Delta Corporation should strive for a diverse board composition to bring a range of perspectives
and expertise. This includes promoting gender diversity, ethnic diversity, and a mix of professional
backgrounds. A diverse board can enhance decision-making, improve governance practices, and
better reflect the interests of the company's stakeholders.

Protecting shareholder rights is crucial for maintaining investor confidence and promoting corporate
governance. Delta Corporation should respect the rights of shareholders, including the right to vote,
receive dividends, and participate in decision-making processes. The company should facilitate the
exercise of these rights through clear and transparent procedures, timely communication, and the
provision of proxy voting options.

Introduction (2 marks)

Corporate governance is the framework ensuring responsible leadership and effective control
within an organization. This essay will discuss the six pillars of good corporate governance –
accountability, transparency, fairness, independent assurance, good leadership, and
stakeholder management – with reference to a listed company in Zimbabwe, [Listed
Company Name].

The Six Pillars (18 marks)

 Accountability (4 marks): A well-defined structure should exist to hold directors and

management responsible for their decisions. In [Listed Company Name], the board
should be accountable to shareholders through annual reports and AGMs. Internal
controls and a whistleblowing policy can further strengthen accountability.
 Transparency (4 marks): Timely and accurate disclosure of financial information
and company activities is crucial. [Listed Company Name] should ensure its financial
statements comply with International Financial Reporting Standards (IFRS) and are
 readily available. Transparency also extends to clear communication with
stakeholders.
 Fairness (4 marks): All stakeholders, including shareholders, employees, and
creditors, should be treated equitably. [Listed Company Name] should have policies
addressing conflicts of interest and ensure fair allocation of resources and
opportunities.
 Independent Assurance (3 marks): An independent audit provides external scrutiny
of financial statements. [Listed Company Name] should engage a reputable audit firm
to verify the accuracy of its financial reporting.
 Good Leadership (3 marks): The board of directors should be composed of qualified
and independent individuals who provide effective oversight and strategic direction.
[Listed Company Name] should prioritize a board with diverse expertise and avoid
dominance by a single controlling shareholder.
 Stakeholder Management (4 marks): The company should consider the interests of
all stakeholders, not just shareholders. [Listed Company Name] could demonstrate
this through community engagement programs, environmental sustainability
initiatives, and fair labor practices.

Challenges and Recommendations (3 marks)

While Zimbabwe has a framework for corporate governance through the Companies Act and
the Zimbabwe Stock Exchange listing requirements, concerns remain. Enforcing these
regulations and fostering a culture of good governance is crucial.

Conclusion (2 marks)

By adhering to the six pillars of corporate governance, [Listed Company Name] can build
trust with stakeholders, enhance its reputation, and ultimately improve its long-term
performance. Continuous improvement and addressing local challenges are essential for
effective corporate governance in Zimba

Corporate governance, as you mentioned, is indeed anchored on six pillars: accountability,

transparency, fairness, independent assurance, good leadership, and stakeholder management.
These pillars serve as the foundation for effective governance practices within organizations.
In this discussion, I will examine the application of these pillars in a listed company in
Zimbabwe, with a specific focus on Econet Wireless Zimbabwe.

Econet Wireless Zimbabwe is a telecommunications company listed on the Zimbabwe Stock

Exchange. Let's explore how each of the six pillars of corporate governance applies to this
organization:

1. Accountability: Econet Wireless Zimbabwe should establish clear lines of

accountability throughout its organizational structure. This includes defining roles and
responsibilities, implementing effective internal controls, and ensuring that decision-
making processes are transparent. The company should have a board of directors that
acts in the best interests of shareholders and holds management accountable for
achieving strategic objectives.
2. Transparency: Econet Wireless Zimbabwe should prioritize transparency by providing
timely and accurate information to its shareholders, investors, and other stakeholders.
This includes disclosing financial statements, corporate policies, and any material
 information that could impact the company's performance. The company should also
ensure that its communication channels are open and accessible to stakeholders.
3. Fairness: Econet Wireless Zimbabwe should strive for fairness in its operations. This
includes treating all shareholders equitably and providing equal access to information.
The company should have mechanisms in place to address conflicts of interest and
related-party transactions, ensuring that decisions are made in a fair and unbiased
manner. Additionally, the company should promote diversity and inclusion in its
workforce and strive for fair employment practices.
4. Independent Assurance: Econet Wireless Zimbabwe should engage independent
auditors to provide assurance on the accuracy and reliability of its financial
statements. Independent assurance ensures that financial reporting is conducted in
accordance with applicable accounting standards and regulations. The company
should also establish an internal audit function that operates independently to assess
the effectiveness of internal controls and risk management processes.
5. Good Leadership: Econet Wireless Zimbabwe should have a board of directors
comprised of competent individuals who possess the necessary skills, experience, and
diversity to provide effective oversight and strategic guidance. The board should act
in the best interests of the company and its shareholders, making informed decisions
and ensuring ethical conduct. The company should also invest in leadership
development programs to foster a culture of good leadership throughout the
organization.
6. Stakeholder Management: Econet Wireless Zimbabwe should actively engage and
manage its stakeholders. This includes understanding their needs and concerns,
maintaining open lines of communication, and considering their interests in decision-
making processes. The company should engage with shareholders, customers,
employees, regulators, and the local community to build trust and maintain positive
relationships.

By adhering to these six pillars of corporate governance, Econet Wireless Zimbabwe can
enhance its reputation, attract investment, and foster long-term sustainability. It is important
to note that the effectiveness of corporate governance practices may vary depending on the
specific context and challenges faced by the company. Therefore, continuous evaluation and
improvement of these practices are essential for ensuring their relevance and effectiveness