The Influence of a Normative Framework on Corporate Governance Decision-Making in Ghana's Public Sector: The Role of Integrity and Financial Transparency of Public Officials

Abstract

Corruption, insufficient transparency, and ethical flaws plague Ghana's public sector, eroding faith in institutions and impeding sound decision-making.  Financial inconsistencies, such as Covid-19, weaken confidence and contradict moral values, necessitating integrity and corporate governance decision-making to support ethical leadership and institutional reform. This study examines the influence of ethical principles, legal frameworks, and moral values on corporate governance decision-making in Ghana’s public sector, emphasising the mediating role of integrity and financial transparency. Utilising Treviño’s Interactionist Model, the research employs a mixed-methods approach, integrating survey responses (n=259) and interviews with key public officials. An XSTAT was utilised to perform Partial Least Square Structural Equation Modelling. The results revealed that ethical standards, legal values, and moral values significantly impact corporate governance decisions. The effect of a robust normative framework on corporate governance decisions is strengthened when public officials exhibit high integrity and financial transparency. The research further establishes that individuals demonstrating high integrity and financial transparency are more inclined to make decisions that align with corporate goals rather than personal financial gain. The study recommends that public institutions bolster their ethical, legal, and moral guidelines to foster a governance culture characterised by integrity, accountability, and transparency. To promote sound corporate governance decisions in public institutions, organisational and personal factors must be integrated into decision-making frameworks.