Running business like a government in the new economy: lessons for organizational design and corporate governance

Abstract

Principal-agent problems are largely responsible for poor corporate governance. Much work on private sector corporate governance reform seeks to address transparency, accountability and responsiveness to stakeholder interests under the new category of corporate social responsibility (CSR). Yet, these issues are not new. The public sector has been working on these issues for many years ± especially in looking at ways of reducing malfeasance and also optimizing use of resources for the bene®t of principals. Some lessons from public sector reform include promoting information dissemination, participation, and balancing powers between a corporation's executive and supervisory entities. While ®rms should not necessarily be administered like governmental bodies, there are many lessons from public sector organizational reform and institutional governance that may be applicable to large-scale public corporations.

Sustainable Development and Corporate Performance: A Study Based on the Dow Jones Sustainability Index

“…Sustainability philosophy assumes that we abandon a narrow version of classical economic theory 4 and develop corporate strategies that include goals that go beyond just maximizing shareholders' interests. Attention is directed to the demands of a wider group of stakeholders, since the firm's success depends on stakeholders' satisfaction (Buchholz and Rosenthal, 2005;Freeman, 1984;Hardjano and Klein, 2004;Michael and Gross, 2004).…”

Are boards on board? A model of corporate board influence on sustainability performance

“…© eContent Management Pty Ltd sustainability criteria (BCA, 2011;Haanaes et al, 2011;Michael & Gross, 2004). Further, as companies face increasing pressure from stakeholders and governments to take sustainability-related actions, they have a vested interest in addressing these concerns; because, if companies fail to respond proactively towards sustainability, they may suffer a loss of legitimacy, incur fines and penalties, and even fail to exist (Bansal, 2005;Boerner, 2010).…”

Untitled

“…In the modern business era, it has become the rule of thumb in gaining a competitive advantage since it safeguards the business capacity in the value creation process. The integration of three dimensions; economic, environmental, and social uplifts towards long-term success (Michael and Gross, 2004). So, integrated reporting which communicates combination and the role of each pillar in confirming the sustenance of the business processes are being endorsed across the globe (Albetairi, et al, 2018).…”