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Minggu, 01 April 2012

Addressing Some Inherent Challenges to Good Corporate Governance

by : N Balasubramanian 
The Indian Journal of Industrial Relations: A Review of Economic & Social Development, Shri Ram Centre for Industrial Relations and Human Resources, New Delhi. (Volume 44, No. 44, April 2009, pp.554 - 575)

Are corporations, in general, amenable to good governance? Are there inherent incompatibilities between good governance and the corporate format of organizations? How can these be addressed satisfactorily without over-regulation that might impair entrepreneurial potential? These are some of the nagging issues we seek to explore in this paper, organized as follows: Section I recapitulates the conventional principal – agent paradigm in corporations and flags some of the more important issues that militate against good governance; Section II deals with current governance frameworks and identifies some of the countervailing measures that best-practice prescriptions advocate; and Section III concludes exploring a few out-of-the-box measures that might serve as potential enablers of better governance and discusses both their justification and impact.

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