The ethics of corporate governance: An Asian perspective

Arising from an engrossing and incisive panel discussion at the IV Congress of ISBEE, this paper aims to add the Asian perspective to the debate on ethics of corporate governance. Personal insights and experience in the course of promoting corporate governance are juxtaposed with the theoretical ass...

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Bibliographic Details
Published in:International journal of law and management 2009-01, Vol.51 (1), p.17-26
Main Author: Reddy, Y.R.K.
Format: Article
Language:English
Subjects:
Capital markets
Codes
Corporate governance
Economic crisis
Ethics
International finance
Stakeholders
Stockholders
Studies
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Summary:Arising from an engrossing and incisive panel discussion at the IV Congress of ISBEE, this paper aims to add the Asian perspective to the debate on ethics of corporate governance. Personal insights and experience in the course of promoting corporate governance are juxtaposed with the theoretical assumptions behind the accepted international framework and standards. The paper highlights the key developments relating to corporate governance in Asia; identifies key structural factors and cultural influences; and derives conclusions from these. The paper notes the discernable tilt towards the stakeholders' perspective in large segments of the Asian economy, primarily on account of block-shareholding with control over managements; dominance of State ownership; and the aspiration of the newly internationalising companies to meet the competitive demands of input and output markets relating to stakeholders. The paper argues that the cultural influences such as relation-based priorities and social expectations of "duties" imply a different approach from the Anglo-Saxon contractual constructs. The paper concludes that there is dualism of the culturally determined practices co-existing well with the international standards. This paper could inspire empirical research on the actual impact of economic structures and culture in determining the balance between shareholders and stakeholders in different regions. The paper's unique propositions are likely to sensitize corporations in recognising the dualism in practice and debating merits of convergence. The distinctive value of the paper arises from the arguments and conclusions relating to "synergetic dualism" and "expansive" approach observed in the Asian region. [PUBLICATION ABSTRACT]
ISSN:1754-243X
1754-2448
DOI:10.1108/17542430910936646