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The Promise of Governance Theory: beyond codes and best practices


  • John Carver


Corporate governance exists for one reason and one reason alone: to ensure that shareholders' values, as informed by knowledgeable agency, are transformed into company performance. To the extent a board fails in this, no matter how many other useful things it accomplishes, it has failed. To the extent it succeeds in this, no matter that it accomplishes nothing else, it has succeeded. The worldwide surge of corporate governance codes, while acting to protect investors, does little to enhance the integrity and effectiveness of the governance process itself. Significant improvement in boards' ability to fulfil their roles as shareholders' agents requires going beyond the codes and today's best practices to develop conceptually coherent governance theory. Copyright (c) 2007 The Author; Journal compilation (c) 2007 Blackwell Publishing Ltd.

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  • John Carver, 2007. "The Promise of Governance Theory: beyond codes and best practices," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(6), pages 1030-1037, November.
  • Handle: RePEc:bla:corgov:v:15:y:2007:i:6:p:1030-1037

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    References listed on IDEAS

    1. Joanne Martin, 1995. "The Style and Structure of Cultures in Organizations: Three Perspectives," Organization Science, INFORMS, vol. 6(2), pages 230-232, April.
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    Cited by:

    1. Lin, Philip T. & Li, Bin & Bu, Danlu, 2015. "The relationship between corporate governance and community engagement: Evidence from the Australian mining companies," Resources Policy, Elsevier, vol. 43(C), pages 28-39.
    2. Thomas Gstraunthaler & János Lukács & Marcel Steller, 2008. "The Board of Directors and its Role in the Corporate Governance System - Considerations about the Control Model - A Research Note," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 1(1), pages 37-54, April.

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