Governance strategies for Corporate Enterprise Virtues in five listed banks in Kenya

Abstract

The study examined the extent of corporate virtuous leadership practice in listed Banks in Kenya, through review of the corporate governance. The study made use of Corporate Enterprise Virtues as practised by the Board of Directors. It adopted the perspective of the Company Secretary, who, although is not a member of the Board of Directors, is tasked as the overall governance concerning sound corporate governance practices in any institution. The study identified the various strategies the top five listed banks on the Nairobi Securities Exchange adopt Corporate Enterprise Virtues (CEVM) in their governance practices. The strategies identified that various components of the CEVM framework are included in the governance documents and practices, where the Board of Banks primarily focuses on the Clarity and Congruency principles of CEVM. Board of Directors selection is primarily guided by the level of experience and broadly the assumption that professional experience results in good ethical conduct by a Board of Directors. CEVM training was found to be limited to Clarity and Congruency, and the training was embedded as part of the corporate governance regulation training. The top five banks' focus on sustainability was found to be primarily driven by consequential ethical motive as opposed to the need to achieve human flourishing as defined in the Aristotle Virtue Theory (AVT).