The shift in emphasis on best-practice corporate governance is real, and it is here to stay. It comes from people finding and raising their voices, from politicians recognizing the importance of corporate governance for sustainable economic growth, and from influential investors putting genuine pressure on companies to change their behavior. Companies and boards ignore this trend at their peril.
Lucy Marcus, Project Syndicate, 19 August 2015

ith an ever-increasing awareness of company policies, politics and sources of input, people are beginning to demand more responsibility from the business sector. Now, in an era of social media where people can be heard by thousands and even millions more people than they previously could have, people hold power over these companies. One bad leak can put a corporation into the spotlight. At that point, the only way for them to combat the negative press is to become a better corporation – for example, one that gets media attention for helping the environment, not for corrupt tax evasion schemes. Around the world, the corporate governance landscape is changing in an effort to gain support for responsible practices and policies. This is also largely due to the shifting role that the government feels it needs to play to achieve a robust economy with a strong business core.  Japan’s government has taken a significant lead in the role to regulate businesses for corporate responsibility standards. In 2014, the Japanese Financial Services Agency enacted the Stewardship Code which created a more equal environment for shareholders by ensuring greater transparency and disclosure. The United States Securities Exchange and Commission followed suit this past August by passing a rule that requires public companies to disclose the pay gap between workers and CEOs. One last reason there has been this push for better corporate governance is that sovereign wealth funds, pension funds and global investment banks are increasingly putting their money globally. They expect non-domestic companies to play by rational rules in order to receive their investment. Public opinion, the government, and investor’s money has forced –and enforced– the turn towards better business practices.

Get in deeper:

Corporate Governance || MegaInternational 

Debate: Related Articles
Three Different Perspectives on the Same Issue. Click on the title to see more
Corporate Governance As Antidote To CorruptionIntegrity Over ProfitsEffective Corporate Governance And Sustainability: Mandate Of The Board

Anti-corruption should be seen as a vital objective as corruption has stet negative impact on a society’s development.Kingful Kobena Acquah, GhanaWeb, 22 September 2015

’Integrity over profits’ is a call to the government for action. However, it must also be a battle cry directed at this country’s corporations and firms, which were primarily instituted for profit in the first place.Michael Baylosis, Inquirer, 11 September 2015

How should those with the power to influence governance arrangements best ensure that enterprises pursue appropriate aims, engage in relevant activities, and use capabilities and resources effectively and sustainably?.Prof. Colin Coulson-Thomas, Research Paper, 9 Oct 2015
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)



Leave A Reply

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

Este sitio usa Akismet para reducir el spam. Aprende cómo se procesan los datos de tus comentarios.