So often, when themes like the dearth of transparency, corruption and the abuse of power are the subject of public discourse, the context is usually the political domain. We politicians are the scapegoats for all that is wrong in our country and are thought to be the most afflicted by such deficiencies. As a political operative myself, I can certainly relate to this. The conversation on leadership, for example, tends inevitably to focus on political leadership as though this is the only type of leadership that matters or exists.
The theme of today’s lecture therefore offers an opportunity to discuss a dimension of leadership that is rarely given as much prominence as it deserves, but which has become increasingly vital and strategic. Of course, political leadership remains both necessary and important; hence this paper will focus on the nexus between Corporate Governance and Public Sector Leadership as we explore progressive ideas for stimulating national growth and development.
According to James McRitichie corporate governance is most often viewed as both the structure and the relationships which determine corporate direction and performance. The board of directors is typically central to corporate governance. Its relationship to the other primary participants, typically shareholders and management, is critical. Additional participants include employees, customers, suppliers, and creditors. The corporate governance framework also depends on the legal, regulatory, institutional and ethical environment of the community. Whereas the 20th century might be viewed as the age of management, the early 21st century has been predicted to be more focused on governance. Both terms address control of corporations but governance has always required an examination of underlying purpose and legitimacy.
The theme that emerges from present-day definitions is that in the 21st century, corporations are no longer perceived and narrowly defined as solely commercial entities. They are now recognized for their wide-ranging impact on society, politics, and indeed on everyday life. More than ever before there is greater interest in how corporations are run. As Robert A.G. Monks and Nell Minow wrote in their book, ‘Power and Accountability’, “Corporations determine far more than any other institution the air we breathe, the quality of the water we drink, even where we live. Yet they are not accountable to anyone.”
Corporations are no longer simply evaluated as being able profit-making institutions but as corporate citizens with broader responsibilities to the society at large. Contemporary perspectives on Corporate Governance demand accountability to not just shareholders and management but the entire society.
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