Title: Revisiting Corporate Governance: The Underexplored Role of HR Policies in Enhancing Internal Controls
Authors: Magajiya Tanko & Yahya Uthman Abdullahi,
Volume: 9
Issue: 9
Pages: 232-242
Publication Date: 2025/09/28
Abstract:
Corporate governance failures across the globe, including Enron, Steinhoff, and recurrent lapses in Nigerian banks, have underscored the limitations of traditional monitoring mechanisms such as boards, audits, and financial controls. These failures highlight the urgent need for stronger and more holistic internal control systems. Yet, the role of Human Resource (HR) policies in reinforcing governance frameworks has often been overlooked, particularly in African contexts. This study seeks to address this gap by examining how HR policies enhance corporate governance and strengthen internal controls, with a focus on recruitment, ethics training, performance management, whistleblowing, and disciplinary procedures. Adopting a qualitative, exploratory design, the study relied on secondary data drawn from academic literature, organizational HR manuals, and governance codes, including OECD, COSO, and the Nigerian Code of Corporate Governance. Data were analyzed using content analysis, and five major themes emerged: transparent recruitment reduces nepotism; ethics and compliance training fosters accountability; performance management aligns staff behavior with governance expectations; whistleblowing mechanisms promote transparency; and disciplinary frameworks deter misconduct. Evidence from Nigerian and international cases showed that firms with robust HR policies exhibited stronger compliance and governance outcomes. The study integrates Agency and Stewardship theories to show how HR policies balance monitoring with ethical responsibility. It concludes that HR policies are not merely administrative functions but strategic levers of governance, offering actionable recommendations for regulators, managers, and scholars in emerging economies.