Corporate virtue strategies are more likely to cause good governance than stricter compliance and control regimes
Summary :
Table of Contents
- Introduction.
- Corporate virtue strategies do cause 'good governance'.
- Limitations.
- Conclusion.
- Bibliography.
Abstract
First of all, let's define both expressions "corporate virtue strategy" and "compliance and control". The first refers to the way of acting and deciding according to its beliefs, values, and to its own definition of goodness and righteousness; while the second ones deals with the state of being in accordance with the wish, requirements, demand of authorities and implementing systems to control this compliance. In 2002, Roger L. Martin created a virtue Matrix, a tool which can helps us to set up the basis of the two different factors influencing a corporate decision. In this matrix, he argued that corporate governance take its decision within a civil foundation, composed by customs, norms, laws, and regulations. Companies engage in its practices either by choice (by favouring norms, customs) or in compliance with regulations and law. According to us, we could add to this virtue Matrix, corporate culture, values and beliefs in the decision making process which is done by choice.
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