Topic 1 Starbuck Why corporate governance deserves serious

Topics: Corporation, Corporate governance, Board of directors Pages: 21 (4962 words) Published: June 3, 2015
Starbuck, WH 2014, ‘Why corporate governance deserves serious and creative thought’, Academy of Management Perspectives, vol. 28, no. 1, pp. 15–21.

Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Australian Institute of Business pursuant to Part VB of the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act.

Do not remove this notice.

௠ The Academy of Management Perspectives
2014, Vol. 28, No. 1, 15–21.









University of Oregon
In their article, “Learning From Ancient Athens: Demarchy and Corporate Governance” (this issue), Zeitoun, Osterloh, and Frey contribute a useful summary of the debates about corporate governance and suggest a novel way to involve stakeholders in governance. Picking up from their discussion on corporate governance, this paper raises four issues. First, different kinds of corporations should have different kinds of governance policies. In particular, large global corporations are so important and so distinctive that they deserve special thought. Second, humanity must set priorities among goals. Governance policies that enable an individual corporation to operate effectively right now may cause long-term harm to humanity and the earth, and policies that benefit humanity and the earth may harm individual corporations. It is not clear who should set such priorities. Third, ideas about governance should consider technological and social changes that are propelling corporations toward entirely new forms. Much of the debate about corporate governance has focused on issues relating to 20th-century organizations and 20th-century societies, and significant changes in governance will take decades to take effect. Last, boards of directors exercise rather weak governance in comparison with governance by managerial hierarchies. Thus, it is more important to improve managerial governance. As commercially and politically neutral institutions that emphasize open, fact-based discussion, universities could usefully enhance the quality of governance by senior executives as well as outside stakeholders.

build on the reputations of colleges and universities as commercially and politically neutral institutions to improve current corporate governance through open, fact-based discussions by the people

who actually govern.
Indeed, history indicates that scholarly debates
exerted significant influence on today’s governmental and legal policies and actions regarding corporations (Starbuck, 2003). For example, during
the 1800s, proprietorships and partnerships were
much more prevalent than joint-stock companies
and corporations, and people appear to have seen
little distinction between these organizational
forms (Lamoreaux, 2004; Mark, 1987). Each business organization had to have a unique charter, and these charters did not limit the liabilities of owners.
It was scholarly debates, especially during the late
19th and early 20th centuries, that established the
differences between partnerships and corporations.

Zeitoun, Osterloh, and Frey make valuable contributions by reminding us that corporate governance has extremely important influence on the future of the world and by stimulating discussion
of governance by management scholars. Management scholars should be among the leaders of debates about desirable changes in corporate governance. Such an important task should not depend solely on judges and politicians. Although debates

about governance should involve many people
with a wide range of diverse ideas, scholars have
special responsibilities as both thought leaders...

References: Starbuck, W. H. (2014). L’avenir économique de l’Amérique,
et du monde (The future of America’s economy and
Baumard, P., & Starbuck, W. H. (2001). Where are organizational cultures going? In C. L. Cooper, S. Cartwright, & P. C. Earley (Eds.), International handbook
of organizational culture and climate (pp
Shell International. (2002). People and connections: Global
scenarios to 2020
Starbuck, W. H. (2003). The origins of organization theory. In H. Tsoukas & C. Knudsen (Eds.), Handbook of
organization theory: Meta-theoretical perspectives
Starbuck, W. H. (2004). Four great conflicts of the twentyfirst century. In C. L. Cooper (Ed.), Leadership and
management in the twenty-first century (pp
United Nations. (2010). World population prospects.
Bell, J. B. (2002). The organization of Islamic terror: The
global jihad
United Nations. (2012). The state of food insecurity in the
Berle, A. A., Jr., & Means, G. C. (1932). The modern corporation and private property. New York: Macmillan.
United Nations. (2013). World economic situation and
prospects 2013: Global outlook
De Grauwe, P., & Camerman, F. (2003). Are multinationals really bigger than nations? World Economics,
4(2), 23–37.
Kristie, J. (2009). Rick Goings: “We’ve got an incredible
board.” Directors and Boards, Spring, 18 –23.
Lamoreaux, N. R. (2004). Partnerships, corporations, and
the limits on contractual freedom in U.S
Machen, A. W., Jr. (1911). Corporate personality. Harvard
Law Review, 24(4), 253–267, 347–365.
von Gierke, O. F. (1868 –1913). Das deutsche Genossenschaftsrecht (4 volumes). Diverse publishers. Portions
of this large work have appeared in English, as follows:
Press, 1900, and Bristol, UK: Thoemmes Press, 1996.
Five sections of volume 4, translated by E. Barker,
Natural law and the theory of society, 1500 to 1800.
Cambridge, UK: Cambridge University Press, 1934,
and Boston: Beacon Press, 1957.
World Population Awareness. (2003). World population
awareness and world overpopulation awareness.
Mark, G. A. (1987). The personification of the business
corporation in American law
Law Review, 54, 1441–1483.
National Defense Council Foundation. (2002). World
conflict list 2002
Omae, K. (1999). The borderless world: Power and strategy in the interlinked economy (rev. ed.). New York:
Rathenau, W. (1921). In days to come (S. Fischer, E. Paul,
& C
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about Corporate Governance
  • TOPIC 1 Some Notes On Corporate Governance Essay
  • Corporate Governance in the Hershey Company Essay
  • Essay about Effective corporate governance
  • Hilton hotels Corporate Governance Essay
  • Corporate Governance in an Electricity Company Essay
  • Corporate Governance Essay
  • Corporate Governance Essay

Become a StudyMode Member

Sign Up - It's Free