A tour around the boardroom: Some reflections on how to design boardrooms

Abstract

Purpose: This short reflective paper based on my keynote speech that I delivered at the 2024 African Accounting and Finance Association's (AAFA) Annual Conference at the University of Zimbabwe, Harare, aims to explore how specific boardroom characteristics influence sustainable corporate governance. It seeks to demonstrate that traditional "best practices" in corporate governance are highly context-dependent and may not be universally beneficial, particularly in emerging and entrepreneurial environments such as those found in Africa.

Design/methodology/approach: This reflective paper draws on a synthesis of prior empirical and theoretical research by the author and others to examine the roles of CEO duality, board independence, and board diversity (gender and age) in shaping sustainable governance. The discussion is enriched through a series of contextualised research insights, with a focus on applicability to both developed and emerging market settings.

Findings: This reflective paper finds that board characteristics such as CEO duality, independence, and diversity do not have uniformly positive or negative effects on firm performance or sustainability. Instead, their effects depend on the organisational context, including firm size, industry type, ownership structure, and market volatility. For instance, CEO duality can be positively perceived in innovative or volatile environments, while board independence may be undermined by hidden social or structural ties. Gender and age diversity may also generate value depending on the governance environment and firm lifecycle stage.

Originality/value: This reflective paper provides a critical reflection on the universal application of corporate governance codes. It emphasises the need for flexible and context aware governance frameworks, particularly in African and emerging market contexts where entrepreneurial activity and early-stage firms are more prevalent. It challenges one-size-fits-all assumptions embedded in many governance codes and encourages policymakers and boards to adapt governance designs to their specific contexts.