Essay: What should Asia Pacific gov-ernments do to support their adher-ence to ‘good’ corporate governance principle and sustainable develop-ment?

Résumé du document

According to The World Bank (2006), ‘good' corporate governance (CG) refers to the structures and processes for the direction and control of companies. This involves the relationships among the management, board of directors, controlling and minority shareholders as well as stakeholders.

The reality shows weak corporate governance has precipitated the financial crisis in 1997 within the Asia Pacific region (Chang 2006, 409) and consequently, many Asia-Pacific economic cooperative economies have realized that development of better corporate governance systems is a key component of the policy and structural re-forms essential for a sustained recovery (Ali 2000). This involves a strategic role of the Asia Pacific governments.

However, there are different perspectives to define ‘good' corporate governance and the appropriate role of the governments, which generates risks of controversy in the analysis.

This paper is divided in three parts.
The first part (1) explores the theoretical disagreements related to ‘good' corporate governance and the appropriate role of the government. The second part (2) pro-poses general recommendations based on a specific perspective.

Extraits

[...] The World Bank: Documents and Reports. http://www.wds.worldbank.org/external/default/main?pagePK=64193027&piPK=6418 7937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&theSitePK=523679 &entityID=000094946_99122006032121&searchMenuPK=64187283&theSitePK=523679 (accessed October 2008). Usha C. and V. Haley. (2000). Corporate governance and restructuring in East Asia: An overview. Seoul Journal of Economics, 225- 251. http://proquest.umi.com.ezp01.library.qut.edu.au/pqdlink?index=1&did=7137975 6&SrchMode=1&sid=25&Fmt=4&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=12236200 76&clientId=14394 (accessed October 2008). [...]

[...] Therefore, the role of the government in supporting adherence to ‘good' corporate governance is discussed. On the other hand, CG could be self-regulated, defined as “regulation, control and direction by itself” (Oxford Dictionary, 1989) where businesses and business organizations work out themselves (Chang 2006, 410). Self- regulatory organizations do not face political constraints and thus can act with greater flexibility and higher level of compliance (Healey, Keatie and Michael to apply ‘good' corporate governance principles. However, the authors mention greater flexibility could also “meet out only modest sanctions” resulting in under enforcement. [...]

[...] http://www.adb.org/documents/brochures/corporate_gov/corporate_gov_principle s.pdf (accessed October 2008). Association of South-East Asian Nations (ASEAN). (2007). Annual report: 2006-2007. http://www.aseansec.org/ar07.pdf (accessed October 2008). Chang, S. (2006). Business groups in East Asia: Post-crisis restructuring and new growth. Asia Pacific Journal of Management, 407-417. http://proquest.umi.com.ezp01.library.qut.edu.au/pqdweb?index=0&did=11897858 61&SrchMode=2&sid=1&Fmt=6&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=12236178 86&clientId=14394 (accessed October 2008). Choe, S. and C. Pattnaik. (2007). The Transformation of Korean Business Groups after the Asian Crisis 1. Journal of Contemporary Asia, 232- 255. http://proquest.umi.com.ezp01.library.qut.edu.au/pqdweb?index=0&did=128 0409291&SrchMode=1&sid=17&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=12 23618769&clientId=14394 (accessed September 2008). [...]

[...] The World Bank: Documents and Reports: http://www.wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/ 04/10/000160016_20060410160925/Rendered/PDF/357100Focus1ENFCorpGov3.pdf (accessed October 2008). Mitchell, A. (2006). Law and Culture in the Future of Asia. European Business Law Review, 1303-1308. http://web.ebscohost.com.ezp01.library.qut.edu.au/ehost/pdf?vid=1&hid=117&si d=51ae8698 4681-488b-9029-f3f0daded472%40sessionmgr109 (accessed October 2008). Nobuyuki, D. (2006). Corporate Governance in Japan: from the viewpoints of management, accounting and the market. Management and Corporate Governance, 3-14. http://web.ebscohost.com.ezp01.library.qut.edu.au/ehost/detail?vid=1&hid=101 &sid=e27b90 9621e9899b808b%40sessionmgr102&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=b h&AN=17233892 (accessed October 2008). Oxford Dictionary. (1989). Second Edition. http://dictionary.oed.com.ezp01.library.qut.edu.au/cgi/entry/50219133?single =1&query_type=word&queryword=self-regulation&first=1&max_to_show=10 (accessed October 2008). Robins, F. (2005). [...]

[...] This paper explored the theoretical disagreements related to ‘good' corporate governance and the appropriate role of the government. Focusing on a single theoretical perspective, two recommendations were suggested to define the appropriate role of governments in supporting adherence to corporate governance principles and sustainable development. This perspective was applied to the government of South-Korea. References Ali, S. (2000). "PBEC-APEC Joint Workshop On Corporate Governance": Remarks By Ambassador Serbini Ali Executive Director, APEC Secretariat. http://www.apec.org/apec/news_media/2000_speeches/210300_usa_pbec-apec.html (accessed October 2008). Asian Development Bank (ADB). (2003). Corporate governance: Principle for business enterprises. [...]