Corporate Performance and Governance

Forty years ago managerialism dominated corporate governance. In both theory and practicea team of senior managers ran the corporation with little or no interference from otherstakeholders. Boards of directors were little more than rubber stamps. Today corporategovernance looks very different. In particular several trends have coalesced to encouragemore active and effective board oversight. With the growing strength of consumer movementsand rising levels of awareness among stakeholders corporations are realizing that stakeholdersand consumers are no longer indifferent to unethical practices like financial irregularities taxevasion poor quality products and services kick-backs non-compliance with environmentalissues and hazardous working conditions.