By Prof. Abhijit Bhattacharya
It would be a mistake to see the current crisis of corporate governance triggered by the multi-billion swindles involving some iconic companies primarily through the prism of transparency and compliance. The failure of Sarbanes-Oxley and other stringent disclosure norms to control unbridled growth of corporate greed is a pointer to this.
The problem of ensuring good corporate governance has become knottier with increasing frequency of radical or disruptive innovations, especially in the information and communication technology (ICT) sector during the last couple of decades.
In the pre-ICT era radical innovations were comparatively less frequent. Often these innovations produced a series of incremental innovations leading to smooth growth of productivity for prolonged periods.
It would be a mistake to see the current crisis of corporate governance triggered by the multi-billion swindles involving some iconic companies primarily through the prism of transparency and compliance. The failure of Sarbanes-Oxley and other stringent disclosure norms to control unbridled growth of corporate greed is a pointer to this.
The problem of ensuring good corporate governance has become knottier with increasing frequency of radical or disruptive innovations, especially in the information and communication technology (ICT) sector during the last couple of decades.
In the pre-ICT era radical innovations were comparatively less frequent. Often these innovations produced a series of incremental innovations leading to smooth growth of productivity for prolonged periods.
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Prof. Bhattacharya is the Dean of Globsyn Business School, Ahmedabad
Source: The Economic Times
1 comment:
I see the problem (and opportunity) being both in the structures and systems of governance we have in place and the psychological/moral/spiritual development of those working in business. Both need work.
All the best from the UK,
Mark
http://integrationtraining.co.uk/
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