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Towards a More ‘Ethically Correct’ Governance for Economic Sustainability

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  • Christos Pitelis

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    Abstract

    In this paper, we propose that economic sustainability is seen in terms of (inter-temporal and inter-national) value creation. We claim that value appropriation (or capture), can become a constraint to economic sustainability. We propose that for sustainable value creation to be fostered, corporate governance needs to be aligned to public and supra-national governance. In order to achieve this, a hierarchically layered set of ‘agencies’, needs to be diagnosed and the issue of incentive alignment addressed. Enlightened self-interest, pluralism and diversity, as well as a representative supra-national organisation for world-wide economic sustainability can serve as a new, more ‘ethically correct’ governance for economic sustainability, but not a panacea. Copyright Springer Science+Business Media Dordrecht 2013

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    File URL: http://hdl.handle.net/10.1007/s10551-012-1616-8
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    Bibliographic Info

    Article provided by Springer in its journal Journal of Business Ethics.

    Volume (Year): 118 (2013)
    Issue (Month): 3 (December)
    Pages: 655-665

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    Handle: RePEc:kap:jbuset:v:118:y:2013:i:3:p:655-665

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    Web page: http://www.springerlink.com/link.asp?id=100281

    Related research

    Keywords: Governance; Economic sustainability; Agency; Value creation and capture;

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