The ‘Unmediated’ and ‘Tech-Driven’ Corporate Governance of Today's Winning Companies

TILEC Discussion Paper No. 2017-009

U of St. Thomas (Minnesota) Legal Studies Research Paper No. 17-10

Lex Research Topics in Corporate Law & Economics Working Paper No. 2017-1

48 Pages Posted: 24 Feb 2017 Last revised: 9 Jun 2017

Mark Fenwick

Kyushu University - Graduate School of Law

Wulf A. Kaal

University of St. Thomas, Minnesota - School of Law

Erik P. M. Vermeulen

Tilburg University - Department of Business Law; Philips Lighting - Legal Department; Tilburg Law and Economics Center (TILEC); Kyushu University - Graduate School of Law

Date Written: May 31, 2017

Abstract

Recent corporate governance initiatives encourage a culture of long-term value creation and growth but cannot work as intended by policymakers. The current discussion about corporate governance ignores the transition from a centralized to a decentralized, unmediated, and interconnected world and from a world of vertical hierarchies to a world of horizontal, open, and autonomous networks. This transition process was initiated and is increasingly accelerated by rapid technological change, including developments in social media, blockchain-based smart contracts, decentralized autonomous organizations, big data, and artificial intelligence. This paper shows how policymakers, regulators, business people, consultants, and other corporate governance experts can re-conceptualize corporate governance in a technology-driven and interconnected world.

Keywords: Algorithms, Artificial Intelligence, Big Data, Blockchain, Board of Directors, Communication, Corporate Culture, Corporate Governance, Decentralization, Decentralized Autonomous Organization, Dialogue, Platform Company, Social Media, Stewardship Codes, Technology, Trust

JEL Classification: D20, D23, F60, G30, K20, K22, L20, L25, L29, O10, O30, O40

Suggested Citation

Fenwick, Mark and Kaal , Wulf A. and Vermeulen, Erik P. M., The ‘Unmediated’ and ‘Tech-Driven’ Corporate Governance of Today's Winning Companies (May 31, 2017). TILEC Discussion Paper No. 2017-009; U of St. Thomas (Minnesota) Legal Studies Research Paper No. 17-10; Lex Research Topics in Corporate Law & Economics Working Paper No. 2017-1. Available at SSRN: https://ssrn.com/abstract=2922176 or http://dx.doi.org/10.2139/ssrn.2922176

Mark Fenwick

Kyushu University - Graduate School of Law ( email )

6-19-1 Hakozaki,
Fukuoka
Japan

Wulf A. Kaal

University of St. Thomas, Minnesota - School of Law ( email )

MSL 400, 1000 La Salle Avenue
Minneapolis, MN Minnesota 55403-2005
United States

Erik P.M. Vermeulen (Contact Author)

Kyushu University - Graduate School of Law ( email )

6-19-1, Hakozaki, Higashiku
Fukuoka, 812-8581
Japan

Tilburg University - Department of Business Law ( email )

Philips Lighting - Legal Department ( email )

Amstelplein 2
Amsterdam
Netherlands

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE
Netherlands

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