The Zimbabwe Independent

Applying humanistic corporate goverance for growth in Zim

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

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 longterm 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.