Business Ethics and Corporate Governance, Second Edition

A HISTORICAL PERSPECTIVE OF CORPORATE GOVERNANCE

As we have observed earlier, corporate governance has focused traditionally on the problem of the separation of ownership by shareholders and control by management. But with the passage of time, experiences gained from historical developments of corporate misdemeanour and with the impact of a growing visions of society, we have come to recognize increasingly a broader framework of corporate governance. It is now accepted that firms should respond to the expectations of more categories of stakeholders which include employees, consumers, large institutional investors, government and the society as a whole. These diverse interests are to be harmonized and accommodated. Firms can achieve long-run value ...