Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Acknowledgements
- 1 Introduction: rethinking corporate governance – lessons from the global financial crisis
- Part I The failure of the market approach to corporate governance
- Part II Ownership, internal control and risk management: the roles of institutional shareholders and boards
- Part III Post-crisis corporate governance: the search for new directions
- 12 Corporate governance, capital market regulation and the challenge of disembedded markets
- 13 The focus of regulatory reforms in Europe after the global financial crisis: from corporate to contract governance
- 14 The Great Recession's impact on global corporate governance
- 15 Corporate governance in the Islamic finance industry and mitigation of risks post the global financial crises
- 16 A holistic approach to corporate governance: lessons from the financial crisis and the way forward
- Index
- References
16 - A holistic approach to corporate governance: lessons from the financial crisis and the way forward
Published online by Cambridge University Press: 05 August 2011
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Acknowledgements
- 1 Introduction: rethinking corporate governance – lessons from the global financial crisis
- Part I The failure of the market approach to corporate governance
- Part II Ownership, internal control and risk management: the roles of institutional shareholders and boards
- Part III Post-crisis corporate governance: the search for new directions
- 12 Corporate governance, capital market regulation and the challenge of disembedded markets
- 13 The focus of regulatory reforms in Europe after the global financial crisis: from corporate to contract governance
- 14 The Great Recession's impact on global corporate governance
- 15 Corporate governance in the Islamic finance industry and mitigation of risks post the global financial crises
- 16 A holistic approach to corporate governance: lessons from the financial crisis and the way forward
- Index
- References
Summary
The heightened focus on corporate governance and, in particular, the failure of boards to protect corporations in the aftermath of the global financial crisis (GFC) underline the timeliness of this chapter. The current events, which include failures of monitoring and oversight and fraudulent behaviour by board members and their excessive remuneration levels, have all contributed to make the recent crisis one of the worst international financial collapses since the early part of the twentieth century. Improved decision-making is thus called for in moving corporations to better performance levels (Useem, 2006). However, boards are facing challenges in trying to balance their function as compliance officers with their function as shapers of the corporation's future (Lorsch and Clark, 2008). Simultaneously, a broader issue has emerged where society is redefining deviant behaviour, so that lower levels of conduct that were previously stigmatized are now considered acceptable (O'Brien, 2004). Thus, even though researchers and commentators have usually linked corporate governance to control and compliance with a focus on regulatory solutions, increasingly, we are seeing new approaches that call for behavioural and leadership change and the development of a holistic paradigm that is more suitable for the complexities of the twenty-first century (see Corporate Governance: An International Review, Vol. 17, Issue 4). This chapter picks up these developments and argues for a holistic perspective of governance and moves the debate from a narrow regulatory approach that excludes crucial variables, to highlight the importance of viewing governance problems and solutions from a wider and more inclusive multi-disciplinary paradigm.
- Type
- Chapter
- Information
- Corporate Governance and the Global Financial CrisisInternational Perspectives, pp. 365 - 388Publisher: Cambridge University PressPrint publication year: 2011
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