Corporate Governance in a Risk Society
| Autor: | Anselm Schneider, Andreas Georg Scherer |
|---|---|
| Přispěvatelé: | University of Zurich, Schneider, Anselm |
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
1403 Business and International Management
Economics and Econometrics 1400 General Business Management and Accounting 2002 Economics and Econometrics 0603 philosophy ethics and religion Interconnectedness Globalization 10004 Department of Business Administration Market economy Arts and Humanities (miscellaneous) Shareholder 0502 economics and business Economics Business and International Management Legitimacy Corporate governance 05 social sciences 06 humanities and the arts 3308 Law 16. Peace & justice General Business Management and Accounting 330 Economics 1201 Arts and Humanities (miscellaneous) Nation state 10013 Center for Corporate Responsibility and Sustainability Risk society 060301 applied ethics Economic system Business ethics Law 050203 business & management |
| Zdroj: | Journal of Business Ethics |
| Popis: | Under conditions of growing interconnectedness of the global economy, more and more stakeholders are exposed to risks and costs resulting from business activities that are neither regulated nor compensated for by means of national governance. The changing distribution of risks poses a threat to the legitimacy of business firms that normally derive their legitimacy from operating in compliance with the legal rules of democratic nation states. However, during the process of globalization, the regulatory power of nation states has been weakened and many production processes have been shifted to states with weak regulatory frameworks where businesses operate outside the reach of the democratic nation state. As a result, business firms have to address the various legitimacy challenges of their operations directly and cannot rely upon the legitimacy of their regulatory environment. These developments challenge the dominant approach to corporate governance that regards shareholders as the only stakeholder group in need of special protection due to risks not covered by contracts and legal regulations. On the basis of these considerations, we argue for a democratization of corporate governance structures in order to compensate for the governance deficits in their regulatory environment and to cope with the changing allocation of risks and costs. By way of democratic involvement of various stakeholders, business firms may be able to mitigate the redistribution of individual risk and address the resulting legitimacy deficits even when operating under conditions of regulatory gaps and governance failure. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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