The Rise and Fall of Corporate Governance: Consumers, Fools and Impostors
Posted: 2 May 2009
Date Written: May 1, 2009
Globalization is still very partial and incomplete. Rules and norms of corporate governance are important components of the framework for successful market economies. Although corporate governance can be defined in a variety of ways, generally it involves the mechanisms by which a business enterprise, organized in a limited liability corporate form, is directed and controlled. It usually concerns mechanisms by which corporate managers are held accountable for corporate conduct and performance.
The debates about governance and ethics have sprung from corporate failure, not from corporate success. The corporate sector has been plagued by huge scandals relating to excessive manager compensation and fraudulent bookkeeping. The field of corporate governance has a vast literature on corporate finance, for example the work of the author Michael Jensen.
Otherwise the researcher is worried with the question of accountability. The core problem is the triumph of the economic over the social and the political aspects of business, reinforced by economic dogma that squelches a more balanced view of business and its role in society.
The insightful and provocative article by Stephen Vargo and Robert Lusch argues that, because marketing has historically been informed by static-equilibrium economics, it has had a goods-centered dominant logic. Briefly, the academic focus is shifting from the thing being exchanged to one on the process of exchange. In that way, the focus of this work is to analyze the competitive process on the complexity of business environment, under stakeholder engagement optics and based on networked information economy.
On the methodological point of view, a literature review is done in the field of corporate governance and digital marketing; sequentially are shown a proposed model of marketing corporate governance.
Keywords: Corporate Governance; Marketing; Stakeholders; Digital Media.
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