Business Sustainability, Corporate Governance, and Organizational Ethics

CHAPTER 23Transformation of Corporate Governance, Contemporary Issues, and Global Perspectives

1. Introduction

Corporate governance measures vary among countries because of political and cultural infrastructure, regulatory framework, and information infrastructure. The persistence of differences in global economic structure, financial systems, and corporate environment necessitates the move toward convergence in corporate governance measures and regulatory reforms. The emerging global corporate governance reforms are shaping capital markets’ structure worldwide and altering their competitiveness and the protection provided to investors. This chapter presents the evolution and global perspective on corporate governance, corporate governance of multinational companies, and the possible convergence in corporate governance. Many corporate governance challenges and issues have been encountered and addressed during this transition process. These challenges and issues range from investor confidence, nomination, and the election of corporate directors to emerging issues associated with the board of directors’ effectiveness and the quality of financial and auditing processes. Globalization of financial markets, technological advances, and the 2007–2009 global financial crisis have caused many challenges for corporate governance.

Learning Objectives

• Realize that corporate governance is evolving, and the structure varies across countries, industries, and companies.
• Understand the history ...