Effect of Corporate Governance on Environmental Sustainability in the Upstream Oil and Gas Sector in Ghana

Abstract

The study was conducted to examine the effect of corporate governance on environmental sustainability in the upstream oil and gas sector in Ghana. The target population included those in top management, senior staff and technical staff. The research utilized the explanatory research design with quantitative inquire to approach the study. The study sampled and surveyed 133 employees from five selected upstream oil and gas companies in Ghana through structured questionnaire administration. The finding of the study revealed that the state of effectiveness of the implementation of corporate governance systems as measured by corporate structure, corporate strategy and corporate social responsibility is generally very effective at the selected upstream oil and gas companies. Also, the results of the study revealed that changes in the components of corporate governance measured as corporate structure and corporate strategy collectively accounts for a statistically significant positive substantial improvement in environmental sustainability whereas corporate social responsibility accounted for a statistically significant positive moderate improvement in environmental sustainability in the upstream oil and gas sector in Ghana. It was therefore recommended that management of these selected upstream oil and gas companies (Kosmos energy, ENI, Aker energy, Tullow oil and Springfield) must continue to implement corporate governance that are modelled around the corporate governance programmes contextualized in the estimated model if they are to keep on improving the level of environmental sustainability of their companies.