Sound Governance Practices Research Articles

The Effect of Internal Organization Factor and Legal Protection on User Intention of Whistleblowing System with Internal Control as Moderation Variable

This research aims to analyze the influence of perceived organizational support, commitment to the organization, locus of control and law enforcement on whistleblowing intentions with internal control as a moderating variable. The sample for this research was the university academic community who live in Semarang, Central Java, Indonesia, totaling 246 people. This study investigates the motivations of university whistleblowers with the notion that as establishments are required to uphold sound governance practices, colleges ought to be free from fraud. Apart from that, research related to whistleblowing and legal protection moderated by internal control systems at universities is still underrepresented in Indonesia, so this moderation model is the originality of this research. The results of this study show that while organizational commitment, organizational support, and law enforcement have little impact on whistleblower intentions, locus of control does. The impact of legal protection on the desire to come out as a whistleblower may be mitigated by the internal control system. However, the impact of organizational commitment, support, and locus of control on the desire to become a whistleblower cannot be mitigated by the internal control system.

Good Governance Analysis of the Role of the Reserve Army in Strengthening National Defense

Effective governance is a cornerstone of any modern nation's strength and security. This paper conducts a comprehensive analysis of the role of the reserve army in strengthening national defense, within the framework of good governance principles. The reserve army, a vital component of a country's defense strategy, represents a proactive and cost-efficient means of augmenting the regular armed forces during times of crisis. Through a lens of good governance, this study examines the organizational, strategic, and ethical dimensions of the reserve army's contribution to national defense.The analysis begins by exploring the concept of good governance, highlighting its significance in ensuring transparency, accountability, and citizen participation in defense policies. Drawing on case studies from various nations, the paper investigates how effective governance practices can positively influence the recruitment, training, and deployment of reserve forces. Special attention is given to mechanisms that promote equitable representation, inclusivity, and adherence to human rights standards within the reserve army framework.Furthermore, the study delves into the strategic alignment between the reserve army and the overall national defense strategy. It examines how coherent planning, integrated communication, and joint exercises between regular and reserve forces can enhance the overall preparedness and responsiveness of a nation's defense apparatus. The role of technology and innovation in optimizing the reserve army's effectiveness is also explored, emphasizing the importance of well-governed resource allocation and technological integration. In conclusion, this paper underscores the critical role of good governance in maximizing the potential of the reserve army to strengthen national defense. By aligning recruitment practices, strategic planning, and ethical considerations with principles of effective governance, a nation can build a resilient, adaptable, and citizen-oriented reserve force that significantly contributes to its overall security. The findings of this analysis provide valuable insights for policymakers, military planners, and scholars seeking to enhance the role of the reserve army within a framework of sound governance practices

Works Well with Others: Gendered Mediation of Collaborative Leadership Skills

ABSTRACT This research note reports an intriguing finding, reached inductively from textual analysis of newspaper coverage of the leadership attributes of 22 women and men premiers in Australia and Canada. When introducing these newly selected subnational government leaders to the public, journalists articulated their capacity to work well with others as an important leadership competency. Women and men premiers alike were described as inclusive, conciliatory, and consultative, and these qualities were highlighted as integral to effective decision-making and sound governance practices. Our research challenges a central proposition of the gendered mediation thesis: that news coverage of political leaders foregrounds and lauds the agentic qualities traditionally associated with men and masculinity while downplaying and denigrating communal qualities linked to women and femininity. Evidence of media attention to and praise for collaborative leadership traits indicates a feminization of politics that disrupts gender stereotypes in a manner helpful to women’s political ambition.

The Push Towards Corporate Guidelines

Institutional investors bear an obligation and public expectation to be good stewards of their portfolio companies. Many commentators argue that the investors have failed to do so because they are not incentivized to make adequate investments in corporate governance. However, such criticism only examines institutional investors’ efforts in actively engaging with the governance of their portfolio companies and ignored an important, passive governance tool—corporate guidelines. Those guidelines are published by the investors to articulate their stances on governance issues and justify their voting decisions in annual meetings. Corporate guidelines have become increasingly popular among not only the investors, but also parties who interact with the investors in shaping corporations’ governance regimes, such as the corporations’ managements and other shareholders, proxy advisory firms, and law firms. This paper examines how corporate guidelines are used by those entities and explains why they have been used more frequently. For institutional investors, corporate guidelines serve as the best tool for balancing the investors’ governance-related duties and the need for cost minimization. Creating and using the guidelines is less costly than active engagements, and unlike outsourcing voting decisions to proxy advisory firms, it is still regarded as a valid way to fulfill the investors’ duties as corporate stewards. For managements, aligning governance policies with corporate guidelines signals their commitments to sound governance practices and helps them fend off challenges by activist shareholders. Activist shareholders, on the other hand, also cite corporate guidelines to support their proposals. The rise of corporate guidelines, therefore, can be explained by more investors willing to supply corporate guidelines and more corporations, shareholders, and proxy advisory firms finding the guidelines useful in advancing their own interests.

Sound Governance in the Development of Mamminasata Metropolitan Areas in South Sulawesi Province

The direction of development in Indonesia has strongly integrated with the concept of good governance started from the strengthening of international market that is both imperialist and colony thereby contradicting to the tradition of developing countries. This leads to the establishment of sound governance as an alternative concept to improve the government's capacity to innovate in policy and administration. The development of Mamminasata Metropolitan area in South Sulawesi province experiences difficulties in implementing the coordination, integration, synchronization and cannot accommodate the whole event in order to realize the interconnection of development across districts / cities, whereas the central government makes this as a National Strategic Areas (KSN) and leading area in the East Indonesia. This study aims to explore and analyze the sound governance practices in the development program of Mamminasata Metropolitan area focusing on five dimensions, namely process, structure, values, management, and policy. The results show that 1) in the process dimension, the stakeholders involved in the Mamminasata development program establish inter-regional cooperation and coordinate externally and internally of the area ranging from planning to the implementation of development activities; 2) in the structure dimension, the government has established clear organization and regulation in regulating the development process. 3) in the value dimension, Mamminasata development program is based on the responsiveness of local government and has up-holded justice in accordance with the potential of each area; 4) in the management dimension, the government personnel has already had knowledge about the Mamminasata concept, but they are still experiencing problems in the use of technology because of limited resources; and 5) in the policy dimension, the government has encouraged the public to participate directly in policy making and implementation of development programs. Therefore, it can be concluded that the five dimensions of sound governance has been practiced in the Mamminasata Metropolitan area development.

Interrelationship among Selected Voluntary Board Practices in Corporate Governance: Evidence from India

Past research discerns that companies following sound governance practices are valued better in the market. Since board of directors play a very crucial role in corporate governance, the present study has identified some selected voluntary board practices and examined them with the help of a sample of top listed companies in India. The analysis covered in this paper provide insights into the association between voluntary board practices followed by the companies with a special emphasis on CEO non-duality i.e. separating the roles of CEO and board Chairman. The other selected voluntary board practices include the existence of outsidercontrolled board, majority-independent board, super active board and the establishment of completely independent audit committee. The study also highlights the role of firm size in the relationships between selected voluntary board practices. In particular, this investigation divulges that there exists an association between some of the selected voluntary board practices and these relationships do vary according to the firm size status in magnitude as well as direction.

Micro-pensions in India: Issues and challenges

This article aims to fill a gap in the social security literature on India by examining the role of micro-pensions. The analysis suggests that because of the heterogeneity of the target population, micro-pension products — with microfinance institutions (MFIs) as the main, but not only sponsors — should be voluntary and portable and permit experimentation in their design and in the delivery of services. Accordingly, decentralized micro-pension schemes that operate within an appropriate regulatory framework and according to sound governance practices are deemed more fitting for the Indian context than centralized schemes with limited flexibility. The article discusses two case studies of recently-initiated micro-pension schemes in India, which reveal the need for rigorous analytical research on the micro-pension sector, particularly concerning the structuring of pay-out options and innovative delivery mechanisms. The article concludes that micro-pensions have the potential to be one of the most useful components in India's multi-tiered social security system, and should be encouraged.

Governance and performance in compliance versus non-compliance Chinese listed companies

Cases of corporate scandals and the misconduct of publicly listed companies (PLCs) are growing amid rapid economic development in China. Systematic research on governance factors affecting these corporate misconducts and their consequences is however scant. This study compares the key governance characteristics of Chinese PLCs that were found to have contravened regulatory compliance requirements (i.e., “non-compliance” PLCs) to those that were not (i.e., “compliance” PLCs). Based on a comparison between 53 pairs of compliance - and non-compliance-PLCs over the period from 2001 to 2006, our results show that there are significant differences between the two. We found that ownership concentration is higher in compliance firms that also compensate their directors and executives at higher levels. Furthermore, the results suggest that sound governance practices benefit firms socially and financially, and an effective internal monitoring mechanism can further differentiate good companies from bad companies such that the good companies perform better.

Does Governance Matter to Long-Term Investment Performance?

It is easy to think that problems with corporate governance are a phenomenon of the United States in the 21st century. But sound governance practices have been a global problem for 400 years. Today, however, shareholders, regulators, and other organizations—such as CFA Institute—are recognizing their common interests in fostering the highest standards for corporate governance.

Corporate governance in the financial services sector

PurposeThe purpose of this paper is to overview the goals of corporate governance in the financial services sector from a theoretical perspective. This sector has experienced some high profile corporate scandals, including BCCI, Barings Bank, and Equitable Life. Yet the UK's Combined Code on Corporate Governance does not give any special prominence to the corporate governance issues involved in this important and idiosyncratic business area.Design/methodology/approachFirst, the broad parameters of corporate governance are discussed, from a theoretical perspective. From this particular characteristics are derived applicable to the financial services sector. These issues are examined and the extent to which they have been addressed by contemporary academic or policy‐related studies is considered, and also how they are related to the activities of the main bodies responsible for external oversight.FindingsThe main attention of this paper is banks and a key issue arising is that the typical structure of their balance‐sheets – high leverage, and a mismatch in their assets and liabilities, mean that it is imperative that they keep lenders' confidence, and imply a wider duty of care for bank directors. External regulators (FSA) and auditors have vital oversight functions, which should encourage sound governance practices. One avenue of future research would be to assess the effectiveness of compliance in the UK, given that financial companies have obligations concerning both FSA requirements and Combined Code provisions.Originality/valueSome key issues pertaining to corporate governance in financial services are addressed, highlighting their significance, to encourage further investigation by academics and practitioners in the field.

Board composition and firm value under concentrated ownership: the Canadian evidence

This paper examines the relation between board composition and firm value in the presence of significant ownership concentration using publicly traded Canadian firms over the 1993–1997 period. The results indicate that greater board independence does not have a positive influence on firm value and that poorly performing firms increase the proportion of outside directors in subsequent periods. This may result from firms acting to appease unhappy investors by adding outside directors. However, the results also indicate that directors from financial institutions can provide monitoring benefits. Finally, the negative effect of dual class common stock on firm value is mitigated by board independence, the participation of officers from financial institutions and audit committee independence. These findings suggest that sound governance practices can enhance firm value in countries with high ownership concentration even in the presence of strong minority shareholder protection.

Ethics and accountability in the Canadian Paediatric Society

Ethics and accountability in the Canadian Paediatric Society

Governance conditions, roles and capacity‐building needs in the rebel‐held areas of Southern Sudan

AbstractAn assessment is made of the state of sustainable human development (SHD) and the institutions of governance that are in the process of being established in the rebel‐held areas of Southern Sudan. The development roles of the main governance actors—government, civil society and the private sector—are examined and capacity‐building needs are described. The importance of good leadership, institutionalised partnerships between government and national and international NGOs, and capacity building for transparency and accountability is stressed. Most pointedly, the risks of allowing governance practices, suited to the management of a liberation struggle, to spill over into the civil administration of a peaceful state are emphasised. The conditions necessary for the institutionalisation of sound governance practices are discussed. Of particular importance are a genuine desire on the part of the leadership to establish such conditions and a willingness on the part of external donors to address issues of accountability and transparency openly in collaboration with the leadership. The data are also suggestive of broad development strategies that address the bases of SHD and empowerment. These broad strategies are designed to improve the very low levels of health and education that exist in the Southern Sudan, and thereby empower people to engage in economic activity and in governance decision‐making. Rehabilitation and maintenance of the physical infrastructure underlies all development activity. The findings highlight the governance difficulties faced by war‐torn societies, the challenges facing post‐crisis administrations and (confirming Caplan 2002) the need for such administrations to possess sufficient executive authority to be able to perform effectively in situations of ‘pre‐state, post‐imperial chaos’. Most critical of all, however, is the genuine interest of the major powers in doing more than—when it suits them—extinguishing the flames of conflict or establishing acquiescent political regimes following the military pacification of ‘rogue’ or anarchic states. Effective post‐crisis administration and development calls for much greater commitment of resources from the major powers than has been forthcoming to date, reflecting a belief among them that equitable and sustainable global development is the preferred route to the prevention of such crises. Copyright © 2003 John Wiley & Sons, Ltd.