Despite the growing global focus on sustainable corporate practices, many African nations continue to grapple with institutional weaknesses that hinder the effective implementation and execution of Sustainable Development Goals (SDGs). Additionally, the pursuit of sustainable development in Africa is closely tied to the quality of institutions overseeing the social, economic and environmental policies. This study explored the longitudinal trends of institutional quality indicators among selected African countries. Four out of six key institutional quality indicators, which comprise of Political Stability and Absence of Violence/Terrorism, Control of Corruption, Government Effectiveness and Rule of Law, were considered. They play a vital role in creating an enabling environment for sustainable corporate practices. Thus, it focuses on their implications for the SDGs, principally SDG 16 (Peace, Justice, and Strong Institutions) and Corporate Sustainability. The study purposely selected two African countries from each region: Southern Africa (South Africa and Botswana) and West Africa (Nigeria and Ghana), allowing for a comparative analysis across different governance contexts. It explores secondary data obtained from the World Bank's World Governance Indicators (WGI) from 2002 to 2023. The base year (2002) was chosen because many international databases, such as the WGI and Transparency International, provide consistent data starting from this year, enabling a robust analysis over two decades. The study employed longitudinal trend analysis to assess changes over time and conduct cross-region comparisons. The study recommends that selected countries should strengthen governance frameworks, which include improving government effectiveness, reducing corruption, and ensuring political stability, which is essential for enhancing corporate sustainability and strengthening SDGs.

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Institutional Quality and Its Implications for Corporate Sustainability and Sustainable Development Goals in Selected African Countries

  • Omobolade Stephen Ogundele,
  • Lethiwe Nzama-Sithole

摘要

Despite the growing global focus on sustainable corporate practices, many African nations continue to grapple with institutional weaknesses that hinder the effective implementation and execution of Sustainable Development Goals (SDGs). Additionally, the pursuit of sustainable development in Africa is closely tied to the quality of institutions overseeing the social, economic and environmental policies. This study explored the longitudinal trends of institutional quality indicators among selected African countries. Four out of six key institutional quality indicators, which comprise of Political Stability and Absence of Violence/Terrorism, Control of Corruption, Government Effectiveness and Rule of Law, were considered. They play a vital role in creating an enabling environment for sustainable corporate practices. Thus, it focuses on their implications for the SDGs, principally SDG 16 (Peace, Justice, and Strong Institutions) and Corporate Sustainability. The study purposely selected two African countries from each region: Southern Africa (South Africa and Botswana) and West Africa (Nigeria and Ghana), allowing for a comparative analysis across different governance contexts. It explores secondary data obtained from the World Bank's World Governance Indicators (WGI) from 2002 to 2023. The base year (2002) was chosen because many international databases, such as the WGI and Transparency International, provide consistent data starting from this year, enabling a robust analysis over two decades. The study employed longitudinal trend analysis to assess changes over time and conduct cross-region comparisons. The study recommends that selected countries should strengthen governance frameworks, which include improving government effectiveness, reducing corruption, and ensuring political stability, which is essential for enhancing corporate sustainability and strengthening SDGs.