Balancing Self‐interest and Altruism: corporate governance alone is not enough

Abstract

Governance has become a topic of unprecedented emotional significance and fundamental importance in the boardrooms of companies, partly as a result of a confluence of early 21st century corporate scandals, stock market falls and public rage about senior executive remuneration. A simple adherence to formal systems of corporate governance, in terms of structures, rules, procedures and codes of practice, whilst a starting point, will not alone win back confidence in markets and corporations. Consideration needs to be given to how to release entrepreneurial self interest within a moral context. This focuses attention on the role of other major social institutions which may more naturally be able to nurture a moral framework as well as the role of individual citizens and the responsibility of all of us to enact a moral framework for business activities. There is no escape from individual moral responsibility, and our part in creating and sustaining social institutions beyond corporations.