Corporate Governance And Corporate Social Responsibility

This chapter focuses on corporate governance, which is inextricably bound up with views on the purpose of corporations and how to define a corporation or business. It begins the discussion on corporate governance with a review of the origins of corporate governance and the corporate form. It also explains the reasons for the growth of modern corporations, which in turn has led to an increase in the separation of ownership and control. The chapter examines the different perspectives that exist on the role of corporations, noting the divide that exists between those who advocate a shareholder approach to corporate governance and those who adopt a stakeholder approach. It investigates corporate collapses and regulatory codes to determine if lessons can be learned to avoid further failures.