Dynamics of Good Corporate Governance Practices by Selected Dry Leaning Companies in Harare Metropolitan Province and Implications for Development

Abstract

The study seeks to assess the implications of adhering to good corporate governance practices by selected dry-cleaning companies in Zimbabwe and implications for development. The research adopts mixed-method research approach guided by pragmatism research philosophy anchored on descriptive research design. Random sampling was used to select 15 dr- cleaning companies in the Harare Metropolitan Province which have been operating in the same business for more than 30 years where 66 senior employees were selected as the study sample size from a population of 80. TheKrejcieandMorgan (1970) sample size table was used to determine sample size. Structured questionnaires and guided interviews were used to solicit data which was then uploaded on SPSS version 29 and analysed using descriptive statistics, correlations and thematic analysis for qualitative data. Data was then presented in tables, numbers and themes. Due care to ethics were done (informed consent, confidentiality and voluntary participation) where respondents were informed that data was used for research purposes only. Study results highlight that dry cleaning companies are adhering to some of the following corporate governance practices: effective board reporting, implementation of a code of conduct and ethics policy, protecting minority shareholder rights, ensuring transparency and disclosure in financial reporting. Major challenges identified in the study are lack of corporate governance framework in place for dry-cleaning companies, information asymmetry, and data security and implantation strategies. Based on the study results, conclusions drawn are that dry-cleaning companies in Zimbabwe are adhering to selected corporate governance practices, except some which compromised their operations and sustainable development due to corporate scandals. Proffered recommendations are that they need to foster a culture of accountability, transparency, and ethical leadership, establish a risk management framework and establish a board of directors with clear understanding of their roles and responsibilities. However, there is need for development of a corporate governance framework to guide dry-cleaning companies in Zimbabwe for sustainable development