Fernando's Business Ethics and Corporate Governance, 3rd Edition

Chapter 14

 Corporate Governance: An Overview 453

All these traditional views reect the necessity of corporate governance for improved perfor-

mance of corporates themselves. However, there is a growing school of thought that maintains

that this traditional theory does not go far enough. Good governance is critical not only for the

success or failure of companies, but also for industries and economies as well. Besides, there is a

need to extend the concept of governance to corporates of developing and transitional economies

and standardise it to accommodate “well-entrenched” local and regional customs, traditions and

business practices, which ...