Business Ethics and Corporate Governance, Second Edition

THE WHY AND WHEREFORE OF CORPORATE GOVERNANCE

In most of the emerging economies, the lack of corporate governance enables insiders, whether they are company managers, company directors or public officials, ransack companies and deny public coffers their dues. They tend to enrich themselves at the expense of shareholders, creditors and other stakeholders such as employees, suppliers, the general public and public authorities.

Globalization and financial market liberalization have exposed companies to fierce competition and to considerable capital fluctuations. To expand and be internationally competitive, companies need a large quantum of capital that exceeds traditional funding sources. Failure to attract adequate levels of capital threatens ...