Critical Analysis of the Linkage Between Good Corporate Governance and Institutional Performance in TVET Colleges in South Africa

Abstract

The value of good corporate governance in TVET colleges can never be downplayed. There is a correlation between good corporate governance and institutional performance. The rationale behind the formulation of corporate governance ethical codes was to ensure that academic institutions and other organisations could be systematically managed. TVET colleges have been, over the years, striving to offer vocational and occupational education and training to prepare students to become functional workers in a skilled trade. This elucidates how corporate governance supports positive institutional performance. Nonetheless, KMPG, Deloitte, Institute of Directors, and other observers of the South African corporate environment noted that the development of King I, II, and III reports on corporate governance initially focused on corporate bodies only. Institutions such as TVET colleges and other organisations were later covered. This was done to address inequity and consider the significant role of such educational institutions for the development of the nation’s economy. The subsequent King’s reports were designed in a manner that permitted them to apply for any organisation regardless of manner or form of incorporation.

Keywords: Corporate governance, Institutional performance

DOI: 10.7176/EJBM/13-3-07

Publication date: January 31^st 2021