CORPORATE GOVERNANCE, CORPORATE SOCIAL RESPONSIBILITY, AND SUSTAINABLE COMPETITIVE ADVANTAGE: ADVANCING BEYOND RESOURCE CONTROL

Abstract

This paper aims to explore the relationship between corporate governance (CG) and corporate social responsibility (CSR) in order to propose a framework that extends beyond mere possession and control of resource capabilities, enhancing our understanding of firm performance across various industries. Nigeria exemplifies the global trend of corporate failures, evidenced by the near-collapse of its financial sector and economy between 1997 and 2010. The resulting literature has expanded, largely grounded in the theoretical foundations of Agency Theory. For our purposes, the case study method is deemed more suitable for meta-synthesis in data collection, analysis, and interpretation, as we seek to develop a framework based on primary qualitative case studies. This section presents two case studies: the first on Globacom and the second on Sterling Bank. Both companies possessed the necessary resources and competitive advantages to thrive in their respective markets. However, the management of Globacom and Sterling Bank prioritized profitability over ethical considerations, believing the means justified the ends. Consequently, we advocate for the establishment of a Chief Governance Officer role, emphasizing that it should not be a temporary fix for emerging business crises. To ensure an effective corporate governance structure, the roles and responsibilities of the audit committee must be consolidated.