Sustainable Good Governance and Corporations: An Analysis of Asymmetries
44 Pages Posted: 14 Apr 2006
This article examines critically the three asymmetries related to the place and role of corporations in the project of sustainable good governance. The first asymmetry is between the potential and policies of corporations vis-a-vis the goal of sustainable good governance. It is argued that although the engagement of corporations is critical to accomplish sustainable good governance, many corporations are still not willing or able to do what they could and should do. Regulatory initiatives are abound to bridge this gap between corporate potential and policies. However, as actions of corporations do not generally match with the expectations of these regulatory regimes, this creates a second asymmetry: the divergence between expectations from and actions of corporations. The third asymmetry is between corporate hesitation to assume responsibilities as good corporate citizens and their willingness to assume such responsibilities. This article contends that this final asymmetry arises because the economic reasons justifying corporate contribution to sustainable good governance (goodwill-nomics) do not remedy the hesitation that some corporations might have in taking the plunge towards sustainable good governance (prisoner's dilemma).
Keywords: Sustainable Development; Good Governance; Role of Multinational Corporation; Business Case; Prisoner's Dilemma, Goodwill-nomics
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