Corporate Governance Practices and Organizational Effectiveness

This study was designed to examine the relationship between corporate governance and organizational effectiveness. Some companies had ethical issues hence the need to identify factors that affect implementations of good corporate governance among insurance companies in Nigeria. Questionnaire was used to collect data from the head offices of seven insurance companies that were selected through simple random sampling technique, out of the fifty seven insurance companies registered by National Insurance Commission (NAICOM), Nigeria. The population of the study was 258 element, Taro Yamane technique was used to determine sample size which returned 157 samples. 140 respondents were analyzed which comprises of top management staff, senior managers and managers. Reliability and validity test were carried out with the result of reliability test at r = 0.796. Two hypotheses were developed and tested using correlation (Pearson product moment correlation coefficient). The results revealed that there was a significant relationship between Board composition and company's reputation, code of conduct and corporate social responsibility. This work recommended that insurance companies should improve on their corporate governance practices in order to achieve organizational effectiveness. Shareholders should put in place control measures to checkmate directors high-handedness. The Board should institute a culture of transparency and accountability. NAICOM and FRCN should ensure adherence to code of conduct. NAICOM should send audit queries not only to the management but also to the board.