Assessment of Corporate Governance: The Case of Local Non-Governmental Organizations in Ethiopia (Addis Ababa)

Abstract

This research is an exploratory investigation on the corporate governance practices of Addis Ababa- based non-governmental organizations (NGOs). NGOs are critical in developing nations like Ethiopia since they are a key player in the country's socioeconomic growth (Sintayehu, 2016 and Gidey, 2011). It is consequently critical that these groups run efficiently in order to achieve their goals. The study's major goal is to evaluate the internal governance structure of Ethiopian civil society organizations (CSOs) located and operating in Addis Ababa. Using a survey technique, the study looked at NGOs' governance practices and assessed the governance difficulties that have hampered their effectiveness. The study's sampling frame is all NGOs classified as Ethiopian Charities and Societies (192 NGOs). The study focused on a sample size of 25 local NGOs that were selected using a purposive selection technique from among those local NGOs. The findings were also compared to corporate governance principles and best practices derived from key corporate governance rules and guidelines in order to determine whether they were adequate or had flaws. Data from both primary and secondary sources is used to create the analysis. The primary data is gathered through a standardized questionnaire filled out by relevant officials involved in the governance of the sampled NGOs. Secondary data is derived from various publications and regulations, as well as the ACSO's yearly reports and papers obtained from the sampling NGOs dealing with governance concerns. In addition, secondary sources, particularly university websites, are used to gather information on formal education relevant to the Corporate Governance profession. The information acquired is evaluated and presented using both quantitative and qualitative approaches, primarily descriptive statistics like mean, standard deviation, figures, graphs, tables, and percentages, as well as inferential statistics like regression analysis and narrative analysis. The important words utilized frequently in the research include governance, corporate governance, and CSO (Civil Society Organizations).