Chapter 1: The Nature of Corporate Governance: The Significance of National Cultural Identity
Chapter 1 of 'The Nature of Corporate Governance: The Significance of National Cultural Identity' Janet Dine and Marios Koutsias, Edward Elgar, 2013, Forthcoming
57 Pages Posted: 12 Apr 2013
Date Written: April 10, 2013
Recently many scholars have said that a convergence of corporate governance is inevitable. We believe that it is true but like Mark Twain said “the report of my death was an exaggeration”. We show that although there is some convergence national law of corporate governance is thriving. We also believe that it is necessary for the identity of each country. The reason that national diversity in corporate governance is still widespread is because of the history, philosophy and economy of each county as shown in its cultural heritage and it gives its identity. The cultural heritage in each state is identifiable in the Company Law and Corporate Governance Codes. We consider that this is crucial for the well being for democratic nations. Convergence in corporate governance is a threat to ordered commercial regulations because of the power of the preeminent economic paradigm in the West which is the neo-liberal model. The neo-liberal agenda that predicates deregulation, privatisation and the liberalisation of markets is moulding many jurisdictions into an Anglo- American model of corporate governance which is dangerous for a number of reasons:
• It is an extreme sort of utilitarianism without significant ethical principles.
• It allows the growth of mega companies backed by powerful international institutions including the International Monetary Fund (IMF), the World Bank (WB), the Organisation for Economic Cooperation and Development (OECD) and the World Trade Organisation (WTO).
• It changes the balance of power between states, individuals and counties and the mega companies including the financial sector (‘the markets’) and the international institutions.
• It is disastrous because of the burgeoning inequality between nations and individuals.
• It is profoundly anti-democratic because of the powerful actors.
• It is disastrous for the environment.
We follow these themes in America, Germany and the UK.
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