Comparing corporate governance practices of state-owned enterprises (SOEs) in South Africa and Singapore

Abstract

Research aims: This paper undertakes a cross-country comparative analysis of corporate governance of state-owned enterprises (SOEs) in South Africa and Singapore, two countries using two different models for organising SOEs, with specific reference to agreement with the themes identified in the World Bank’s Framework for good Corporate Governance practices for SOEs. The aim of this paper is to identify differences and similarities in practice and to document how the states have fared using different models.Design/Methodology/Approach: The paper deploys a pragmatic mixed methods approach conducted in two phases, to understand the practices utilised by South African and Singaporean SOEs. The data emerging from these two phases, were compared to the Framework for good Corporate Governance practices for SOEs issued by the World Bank.Research findings: Findings suggest although South African SOEs have good corporate governance practices in place, Singaporean SOEs are better organised and governed compared with South African SOEsTheoretical contribution/Originality: This paper contributes to the scholarly discourse on SOEs in by expanding the discourse on public sector entrepreneurship and opening up new debates and research areas corporate governance of SOEs.

The nexus between non‐governmental organisations involved in conservation and profit‐seeking state‐owned enterprises: A potential alternative credibility enhancing mechanism for biodiversity disclosures?

“…SOEs in South Africa are not grouped strictly according to Penfold et al (2015). Notwithstanding the observation that most South African SOEs area loss making and require bail outs (Adebayo & Ackers, 2022), the assertion by Thomas (2012) that Schedule 2 SOEs are expected to generated revenue, is consistent with Penfold et al's (2015) fourth category of SOEs.…”

“…The need for SOEs to balance social and economic objectives, adds a unique, but important dimension to the biodiversity accounting phenomenon (Hossain, 2017). Since social and economic objectives are often in conflict, one may be prioritised to the detriment of the other (Adebayo & Ackers, 2022). Since SOEs are owned by the state, on behalf of its citizens, it is submitted that they must act in the best interests of the country as a whole.…”

Risk and Sustainability Issues

“…The third article in this issue tackles one of the key concerns with sustainability reporting, namely how to integrate the goals of ESG and financial sustainability. Using experience in the South African context, where sustainability reporting is mandatory, Adebayo and Ackers (2024) investigate the potential conflicts in state‐owned enterprises when the concerns of shareholders and stakeholders are given equal importance. They show that financial and operational risks can undermine performance, and conclude with recommendations for better practices, structures and governance.…”