Naslov
Corporate governance as a learning process: organisational and societal levels

Autori
Račić, Domagoj ; Podrug, Najla

Izvornik
Megatrend Review: The international review of applied economics (1820-4570) 8 (2011), 1; 95-111

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
corporate governance ; agency theory ; systemic governance deficit ; level of corporate governance ; process of institutionalisation ; learning process

Sažetak
The paper differentiates the organisational and the societal level of corporate governance. At the organisational level, around which the debates usually revolve, the focus is on the relationships between shareholders, CEOs and boards of directors, and provisions for other stakeholders to exert some influence on economic, social and/or environmental issues. By assuming developed legal frameworks, financial markets and effective judiciary, such an approach neglects the societal level of corporate governance. That level entails a network of institutions and organisations, as well as the embedded social understandings, which steer managerial and corporate behaviour through legal and habitual instruments. Governance failures of particular corporations in developed economies and the difficulties of Central and Eastern European countries to build effective corporate governance regimes provoke questions whether these problems should solely be attributed to the shortcomings of particular individuals and corporations, or whether they are symptoms of more systemic governance failures. At the societal level, corporate governance can be viewed as a learning process that operates through interaction and dialogue among various stakeholders and results in particular social habits and institutions. Its effectiveness can be analysed in terms of processes (e.g. levels of transparency and accountability of managers and firms to their stakeholders) and (economic, social and environmental) outcomes. Although channelling of the business conduct through laws, customs, codes of conduct and reporting standards is a tentative and insufficient prerequisite of managerial accountability, it is necessary in hindering the reinforcement of unethical behaviour within particular organisational cultures. Effective governance requires a balancing process between the macro-level wider institutional frameworks, meso-level opportunities for stakeholder interaction and micro-level managerial autonomy and accountability.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija, Sociologija

POVEZANOST RADA