IN our previous article, I discussed the humanistic approach to leadership and its potential to transform organisations in Zimbabwe. This week, I will build on that foundation by examining the humanistic perspective on corporate governance and its application in the Zimbabwean context.
I will delve into how directors can enhance stakeholder dignity by leveraging the four drives of human nature, thereby creating a more responsible and sustainable governance model.
The limitations of economistic corporate governance The traditional perspective of corporate governance has been primarily focused on maximising shareholder value and profit. This approach has been criticised for its narrow focus on self-interest, neglecting the well-being of other stakeholders and the environment (Pirson, 2016).
In Zimbabwe, where the economy has faced significant challenges, this approach has led to unethical practices, environmental degradation, and social inequality, worsening the nation's economic troubles (Chigudu, 2015).
The humanistic perspective on corporate governance In contrast, the humanistic perspective on corporate governance prioritises the well-being and dignity of all stakeholders, recognising that humans have multiple drives beyond self-interest.
This approach assumes that directors are stewards who serve all stakeholders, rather than just agents focused on maximising shareholder value (Pirson, 2016).
By integrating ethical considerations and focusing on long-term sustainability, the humanistic approach aligns corporate governance with the broader societal goals of equity and justice. To enhance stakeholder dignity through a humanistic approach to corporate governance in Zimbabwe, directors can utilise the four drives as outlined by Pirson (2018).
Drive to acquire
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Directors can employ a variety of incentives, both monetary and non-monetary, to acknowledge and reward employees' efforts. This may involve implementing profit-sharing programs, offering training and development opportunities, and providing avenues for career growth.
For instance, Delta Corporation, a prominent beverage manufacturer in Zimbabwe, has introduced profit-sharing initiatives that not only recognise employees but also align their interests with the company's long-term objectives (USAid 2000).
By investing in their employees, Delta Corporation ensures a motivated and dedicated workforce committed to the organisation's success.
Drive to bond
Directors can cultivate a strong organisational culture that emphasises integrity, trust, and collaboration. This can be achieved through team-building initiatives, open communication channels, and participatory decision-making processes.
Econet Wireless, a major telecommunications company in Zimbabwe, has been successful in creating a cohesive and collaborative work environment.
Through regular team-building activities and an open-door policy, Econet ensures that employees feel valued and part of a larger community, thereby enhancing overall productivity and job satisfaction (Chakonza, 2019).
Drive to comprehend
Directors can provide employees with opportunities for continuous learning and development, encouraging creativity, experimentation, and innovation. This can include cross-functional training, mentorship programmes, and resources for research and development.
CBZ Holdings, one of Zimbabwe's largest financial institutions, has invested heavily in employee development programmes.
By offering cross-functional training and mentorship opportunities, CBZ not only equips its employees with the necessary skills but also fosters a culture of innovation and continuous improvement (CBZ Holdings, 2023).
Drive to defend
Directors can ensure that the organisation's governance structures are transparent, accountable, and equitable. This can include establishing independent audit committees, whistleblower protection policies, and diversity and inclusion initiatives.
The Zimbabwe Stock Exchange (ZSE) has recently introduced measures to enhance corporate governance among listed companies.
These measures include mandatory independent audits and the implementation of whistleblower protection policies.
By promoting transparency and accountability, the ZSE aims to restore investor confidence and ensure the long-term sustainability of Zimbabwean businesses (Zimbabwe Stock Exchange, 2019).
Conclusion
In summary, the humanistic perspective on corporate governance offers a more responsible and sustainable approach to governance in Zimbabwe. By acknowledging the various motivations of human nature and prioritising the well-being and dignity of all stakeholders, directors can establish a fairer and more just governance model.
As we further develop the concept of humanistic management, we encourage directors in Zimbabwe to adopt this new paradigm and prioritise dignity within their organisations. The shift to humanistic corporate governance is not just a theoretical change but a practical necessity for the sustainable growth and ethical integrity of Zimbabwean businesses.
By incorporating these principles into their governance practices, Zimbabwean companies can create a more inclusive, sustainable, and prosperous future for all stakeholders.
One of the key challenges in management is how to motivate and engage people. I will explore the humanistic perspective on motivation and engagement, providing insights into how to inspire and nurture the human spirit within Zimbabwean organisations.
Acknowledgement: The article has been enhanced with the assistance of ChatGPT and refined with Grammarly.
- Jongwe is an experienced business consultant with extensive expertise across various industries in Southern Africa, including higher education- WhatsApp at +27824083661/+263 788016938 or by email at [email protected].
