Boardroom Cultural Governance: An Examination of the Beliefs and Values of Board Directors and Executive Management in U.S. Based Multinational Corporations (MNCs)

17 Pages Posted: 18 Jun 2012

See all articles by Marianne Fortuna

Marianne Fortuna

Georgia State University

Karen D. Loch

Georgia State University

Date Written: June 15, 2012

Abstract

What transpires in the boardroom is receiving heightened scrutiny due to recent financial failures (i.e., Enron, WorldCom, etc.) and the global financial crisis in 2008. The belief is that the board directors and the executive management team contributed greatly to these crises (Boerner, 2011). This study responds to the appeal to examine the “black box” (Barratt and Korac-Kakabadse, 2002) of boardroom governance and the roles of board directors and executive managers from a behavioral perspective in contrast to the traditional structural framework approach to corporate governance to enhance our understanding of what really transpires in the boardroom, and how and why. Twenty-four respondents were asked to describe their first-hand knowledge of two boardroom decision scenarios, eliciting individual and group beliefs, values and inferred behaviors of the board and executive team members from US multinational corporations. This study represents a first step at opening the black box of boardroom cultural governance.

Keywords: Boardroom cultural governance, board directors, executive management, corporate governance, MNCs

Suggested Citation

Fortuna, Marianne and Loch, Karen D., Boardroom Cultural Governance: An Examination of the Beliefs and Values of Board Directors and Executive Management in U.S. Based Multinational Corporations (MNCs) (June 15, 2012). The Second International Conference on Engaged Management Scholarship, Available at SSRN: https://ssrn.com/abstract=2086356

Marianne Fortuna (Contact Author)

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

Karen D. Loch

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

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