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Author
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Tymon Manunure
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Title
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The impact of corporate governance challenges on state enterprises and parastatals in Zimbabwe: a case of the National Railways of Zimbabwe.
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Abstract
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The study sought to determine the impact of corporate governance challenges faced by NRZ on organizational performance, investigate corporate governance challenges, establish the causes of corporate governance challenges and based on the research findings, to formulate policy recommendations on the proper management of the NRZ to enhance their performance. The research was conducted on NRZ management and staff in all three operational areas, which are Eastern area, Midlands area and Southern Area. The researcher used the Case Study Research Design which enabled the researcher to understand fully the behaviour pattern of the concerned unit and resulted in a fruitful hypothesis along with the data which was helpful in testing. More so, this design had been chosen because it involved use of multiple sources and techniques in the data gathering process. Here, questionnaires and interviews were used as data collecting tools. The researcher distributed 80 questionnaires and conducted 4 interviews to gather research data. Henceforth the findings and conclusions that were deduced are that corporate governance challenges have a negative impact on the financial performance of the NRZ, as it has been attributed by the confused and complex ownership structures and the political dynamics that operate in the parastatal sector. The impacts of corporate governance challenges which were noted are, increase in unethical business practices, scandals; poor service delivery, corruption, conflict of interest, labour disputes (Picketing at Parastatals by former employees demanding their dues), high labour turnover, dismissal of employees and asset stripping, vandalism and theft. Also, the major challenges which were most noted are, lack of integrity and ethics among top management, conflicts of interests of directors, poor legal controls and implementation of the law and the state of the economy of Zimbabwe. Moreover, the revealed major causes of corporate governance challenges faced by NRZ are, lack of whistle-blowers protection, interplay between politics and the governance of the parastatals, wilful non-compliance with corporate governance systems by corporate managers and political unwillingness to institute and enforces corporate governance reforms. Conclusively the researcher, recommends that, the organization should establish incentive programs which foster compliance, attain information and learn from the experiences of contiguous railway companies and developing schools and workshops for directors and management meant for tutoring and boosting the awareness of the importance of corporate governance, so as to alleviate the impact of corporate governance challenges the entity is facing on its performance.
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Date
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2021
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Publisher
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BUSE
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Keywords
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Nation Railways of Zimbabwe (NRZ)
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Corporate Governance
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Supervisor
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N/A
Tymon Manunure.pdf