Cooperate governance and financial performance in War Child Uganda

Abstract

Introduction and backgroundThe term non-governmental organisation (NGO) is used to define an agency that has no government control but receives aid and donations from national and international agencies to carry out poverty alleviation activities on humanitarian sectors (Perkins & Hendry 2015). Non-governmental organisations in Uganda are governed by the NGO Registration Act 1989 that was amended in 2006. The National Board of NGO is authorised under the current legal framework to oversee all NGO activities in the country. Despite their importance in Uganda, NGOs face challenges from regulating agencies, laws and policies governing their regulations, as well as internal NGO challenges. The Ugandan government is now considering relying more on the NGO sector for a variety of welfare and development objectives. In particular, the Ugandan government considered subcontracting the delivery of certain services to NGOs which can be used as a medium to receive public funding to accomplish various tasks. The study, thus, investigates the effect of cooperate governance on the financial performance of War Child Uganda, where the background, problem statement, objectives, literature review, methodology and findings of the study are discussed.Corporate governance is a system of values, policies and institutions that a society uses to manage its economic, political and social affairs through interactions within the state, civil society and the private sector (Potucek et al. 2005). Corporate governance operates at every level of human enterprise and gives an oversight on the management of firms through strategic planning and risk management, oversight of regulatory compliance, independent monitoring of audit functions, economic sustainability and corporate responses to market changes. It is assumed that through corporate governance, financial performance can be effectively realised in organisations (Zouari & Taktak 2014). Background:The corporate governance structure has employed a number of multiple empirical techniques that have influenced many organisations worldwide. War Child in Uganda, an independent international organisation, faced a number of financial data alterations, whose major cause was not following budgets and not adhering to rules and regulations on the use of finances. The failure to disclose information on the proper earnings caused a lot of irregularities in the financial performance of the organisation. Aim:This study aimed at investigating the effect of cooperate governance on financial performance of War Child in Uganda as guided by the following objectives: (1) to find out if the staff of War Child are aware of the existence of financial systems that lead to financial performance in War Child in Uganda and (2) to find out the relationship between corporate governance and financial performance in War Child in Uganda. Methods:The study adopted cross-sectional and descriptive research designs where both qualitative and quantitative approaches were used. Results:The findings of the study showed that the empl...

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