“Corporate virtue” strategies are more likely to cause “good governance” than stricter “compliance and control” regimes

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Presentation

Pages :

4 pages

Format :

.doc

Published date :

01/15/2009

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Table of Contents “Corporate virtue” strategies are more likely to cause “good governance” than stricter “compliance and control” regimes Table of Contents

 
  1. Introduction.
  2. Corporate virtue strategies do cause 'good governance'.
  3. Limitations.
  4. Conclusion.
  5. Bibliography.

Abstract

What is "good corporate governance"? And how an enterprise can achieve to have it? A number of writers and researchers gave their contribution to this subject. Nevertheless, some disagreements and conflicting points of view appeared among them. Indeed, some suggested that corporate virtue strategies are the main factor explaining a "good governance", while others preferred underlining the benefits of compliance and control regimes.
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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