Covid-19: Implications for Corporate Governance and Corporate Social Responsibility (CSR) in Africa

Abstract

The novel coronavirus disease (COVID-19) has undoubtedly brought a lot of disruptions into the world order—lives, livelihoods, national, and international economies and imposed what is now permeating as the “new normal” in all aspects of human activities. In Africa, the combination of severe health and economic crisis has forced governments to resort to issuing different fiscal and monetary measures as they grapple with the debilitating effects of COVID-19 pandemic on their people and economies, struggle to manage economic recessions, and prepare for a post-COVID-19 regeneration. For businesses, the impacts have not been less disruptive as the shocks and waves of uncertainties continue. As corporations battle to survive and sustain business continuity, the rates of corporate bankruptcy and insolvency mid and post COVID-19 remain speculative and uncertain. Yet the strategic roles of modern corporations in the socio-economic development of society, given the sheer volume of their economic resources alone—something that now makes some corporations more economically powerful than some states, have long been established. Drawing insights from the stakeholder’s theories of corporate governance and corporate social responsibility (CSR), this article examines the implications of COVID-19 for corporate governance and CSR, as well as the responses of corporations in Africa to deal with, support, and complement governments’ efforts in combating the pandemic’s menaces. It attempts to outline some of the challenges and significant improvements that are necessary to shape the future of corporate laws and legal reforms in Africa. The article concludes that sound corporate governance practice and corporate investment in CSR can help to shape the performance and resilience of corporations in Africa to adverse shocks such as the present COVID-19 pandemic.