Addressing Some Inherent Challenges to Good Corporate Governance

Bala N. Balasubramanian
2009 Social Science Research Network  
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 this paper explores and offers some radical suggestions for consideration Are corporations, in general, amenable to good governance? Are there inherent incompatibilities between good
more » ... ance 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.
doi:10.2139/ssrn.2125801 fatcat:fglgck4pjzgl3gjzgkpa7f6hym