Effect of Corporate Governance on Public Image of Organization. A Critical Literature Review

Abstract

Purpose: This can broadly be defined as the systems and processes by which a government manages its affairs with the objective of maximizing the welfare of and resolving the conflicts of interest among the stakeholders. The general objective of the study was to establish effect of corporate governance on public image of organization. A critical literature review Methodology: The paper used a desk study review methodology where relevant empirical literature was reviewed to identify main themes and to extract knowledge gaps. Findings: The study found out the board needs to comprise of well-educated people since they are actively involved in shaping state corporations strategy. The study recommends that non-executive directors be trained on internal corporate governance mechanisms. Ownership concentration needs to be reduced to avoid few people controlling the performance of the organization. Employees should be encouraged to be more active in management aspects of the Kenyan state corporations. Recommendations: The board needs to comprise of well-educated people since they are actively involved in shaping state corporations strategy. The study recommends that non-executive directors be trained on internal corporate governance mechanisms. Ownership concentration needs to be reduced to avoid few people controlling the performance of the organization. Employees should be encouraged to be more active in management aspects of the Kenyan state corporations