Corporate Governance and Organisational Performance in Civil Societies in Kapchorwa Municipality: A case of Kapchorwa Civil Society Organization Alliance
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Date
2023-11-03
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Uganda Christian University
Abstract
In Uganda, Civil Society Organizations (CSOs) play a central role on both service delivery and development of democracy while also contributing to achieving equality, justice and poverty reduction. Therefore, they need to have good corporate governance structures to efficiently play their roles in society. This research study sought to examine the effect of corporate governance on organizational performance in civil societies in Kapchorwa municipality using Kapchorwa Civil Society Alliance (KASCOA) as a case. The study sought to address three specific objectives; (1) to determine the effect of board structure on organizational performance of KACSOA in Kapchorwa district; (2) to analyze the effect of board committees on organizational performance of KACSOA; (3) to assess the effect of board competency on organizational performance of KACSOA. A cross sectional design was adopted with a sample of 86 respondents comprising of staff of KASCOA who were chosen through purposive and simple random sampling methods. Primary quantitative and qualitative data was collected from the respondents using self-administered structured questionnaires and personal interviews. Secondary data was obtained from existing related literature including annual reports from KACSOA. Results from the study indicated that all the three variables were statistically significant at 5 percent level of significance. Board committee had the highest positive and significant effect on performance of KASCOA (Beta= 0.975, P=0.000), followed by board competency (Beta= 0.968, P=0.000), and board structure had the lowest significant effect on organizational performance (Beta= 0.916, P=0.000). Drawing from the findings and conclusions, there is need for KACSOA to increase budget compliance, improve its board structure through increasing diversity especially in terms of gender, and to increase the representation of all organization’s stakeholders on the board in order to increase their satisfaction. It is further recommended that KACSOA should form more competent boards that maintain high board and committee accountability, and to monitor the human resource management. Lastly, there is need for the board to efficiently perform its roles and make regular reviews on its own performance in order to boost board competency, thus improved corporate governance and hence a better organizational performance.