Enhancing Organizational Performance and Social Responsibility with Self-Regulation

13 Pages Posted: 6 Jun 2006

See all articles by Shann Turnbull

Shann Turnbull

International Institute for Self-Governance; Sustainable Money Working Group; New Garden City Alliance

Date Written: June 6, 2006

Abstract

This paper identifies how replaceable rules in corporate constitutions could enhance their operations and social accountability on a self-enforcing basis. The introduction of self-enforcing provisions in organizations creates a strategy for reducing the role and cost of government by exempting complying corporations from the laws made redundant. Self-enforcement is achieved by corporate constitutions sharing powers with those citizens and communities that the government makes laws to protect. To achieve this objective each stakeholder constituency needs to establish separate advisory councils. Each council would advise directors on concerns of their constituencies as well as advice on the strengths, weaknesses, opportunities and threats of management and the business. Only concerns not resolved privately would be publicly reported to reduce the disclosure burden of companies and their directors. While the scope of public disclosure would increase, its volume would be reduced to a need to know basis to those parties that have the ability to take corrective action. To empower dispersed shareholders to protect themselves against dominant management and/or other shareholders, their advisory council would be elected by one vote per investor instead of one vote per share a basis that would also enrich democracy.

Keywords: Audit committees, Co-regulation, Corporate Governance, Corporate Responsibility, CSR Reporting, Democracy, Self-enforcing regulation, Stakeholder Councils, Watchdog board

JEL Classification: G38, H11, K22, L20, L50, M14

Suggested Citation

Turnbull, Shann, Enhancing Organizational Performance and Social Responsibility with Self-Regulation (June 6, 2006). Available at SSRN: https://ssrn.com/abstract=906441 or http://dx.doi.org/10.2139/ssrn.906441

Shann Turnbull (Contact Author)

International Institute for Self-Governance ( email )

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HOME PAGE: http://independent.academia.edu/ShannTurnbull/CurriculumVitae
SKYPE: shann.turnbull

Sustainable Money Working Group ( email )

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New Garden City Alliance ( email )

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HOME PAGE: http://www.gardencities.org.uk

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