Corporate governance reform: character‐building structures

Abstract

This paper argues that corporate governance reformers in Anglo-American jurisdictions should consider a different approach in their quest for better corporate governance. Traditionally, corporate governance reform has taken a structural approach, tightening the rules around the number of independent directors required on boards and committees and fine-tuning the definition of independence. However, such an approach has failed to achieve effective corporate governance. Moreover, this approach is informed by the arguably discredited assumption that individuals are rational self-interest utility maximizers. This conceptual paper questions why corporate governance scholars and regulators remain uncritical of this assumption and suggests an approach to reform inspired by a different view of human nature. Indeed, incorporating an actor-based approach to reform into existing structures may better achieve effective corporate governance while addressing an unjustified adherence to this flawed assumption.

Corporate governance, female directors and quality of financial information

“…, Kirchmaier & Grant ). These corporate governance, legal and institutional features in Spain contrast with the situation in Anglo‐Saxon countries (Grant & McGhee ), to which most of the previous evidence referring to gender diversity on ACs refers. This may affect the AC's efficiency and its effect on audit reports.…”

Looking Inside the Black Box: The Effect of Corporate Governance on Corporate Social Responsibility

“…Agency and stewardship theories make different assumptions about managerial motivations, particularly in relation to selecting shareholder versus stakeholder interests (Godos‐Díez, Fernández‐Gago, & Martínez‐Campillo, ). While agency theory assumes managerial guile (Jensen & Meckling, ), stewardship theory proposes that managers can be honest individuals who can adopt pro‐organizational and pro‐stakeholder activities (Ghoshal, ; Grant & McGhee, ). Panels A and B of Table present our review of this literature, addressing the effect of CEOs' individual characteristics, as a product of demographic and socio‐psychological factors, on CSR outcomes.…”

Gender and governance in developing economies

“…Indeed, current models of governance in business ethics and management research are increasingly adopting a more global and multilayered perspective with social, economic, and environmental aims (Grant & McGhee, ; Levy & Kaplan, ) traced between and across these stakeholders and ever expanding to include non‐traditional business actors such as: non‐profit organizations, NGOs, public sector entities, and other significant groups (Barkemeyer, ; Dentchev, Balen, & Haezendonck, ; Moon & Vogel, ; Rasche & Gilbert, ; Vogel, ; Wadham & Warren, ). As argued by Scherer and Palazzo (, p. 16), with this multistakeholder positioning and the growing influence of business generally, firms are increasingly involved themselves in complex systems of governance; that is, increasingly involved “in global business regulation and in the production of global public goods.” With a move beyond viewing governance issues as solely associated with board representation and the behaviors of boards therefore, governance today, and as seen throughout this special issue, is a dynamic term.…”