Value-oriented approach in corporate governance

Abstract

A volatile external environment, a high level of competition, globalization and digitalization of the economy require updating the established principles of corporate governance formation. At the moment, value-oriented corporate governance is becoming increasingly popular. In the article, the authors consider formal and informal mechanisms of corporate governance with an emphasis on values as informal mechanisms that are becoming crucial in modern corporate governance. Theoretical approaches to value-oriented corporate governance are analyzed, the relationship between the values approved in Russian companies and the general level of compliance with the principles of corporate governance is evaluated in the article. To achieve the goal, in the article are used the methods of analysis, comparison, and questioning, the methodology of the National Corporate Governance. Based on the results of the study, it was concluded that companies in which values become an essential part of business culture and practice, demonstrate a high level of corporate governance and high market capitalization. In the largest companies with the best corporate governance practices, documents such as the corporate governance Code, the code of ethics, regulations/policies for resolving corporate conflicts and conflicts of interest are adopted more often than in other companies. The approved business ethics and values of the company, the high level of trust of internal and external stakeholders in the corporate governance system are reflected in the decisions taken that determine the competitiveness and long-term sustainable development of the organization.