IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v132y2015i3p565-577.html
   My bibliography  Save this article

Multinational Corporations and Governance Effectiveness: Toward a More Integrative Board

Author

Listed:
  • Cynthia Clark

    ()

  • Jill Brown

    ()

Abstract

Multinational corporations (MNCs) dominate the global business arena, but new expectations for MNC boards call to question how they might effectively manage global stakeholder relationships in this new era of accountability. Uniting political behavior theory, which describes a board’s international political orientation, and global operating governance systems outlining a set of board behaviors, we develop a typology of four types of boards. We then provide recommendations for the development of an integrative governance structure, taking into account the mechanisms, structure, endorsements, and codes of conduct that MNCs can use to promote ethical behavior across MNC horizons. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Cynthia Clark & Jill Brown, 2015. "Multinational Corporations and Governance Effectiveness: Toward a More Integrative Board," Journal of Business Ethics, Springer, vol. 132(3), pages 565-577, December.
  • Handle: RePEc:kap:jbuset:v:132:y:2015:i:3:p:565-577
    DOI: 10.1007/s10551-014-2358-6
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10551-014-2358-6
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Domènec Melé & Carlos Sánchez-Runde, 2013. "Cultural Diversity and Universal Ethics in a Global World," Journal of Business Ethics, Springer, vol. 116(4), pages 681-687, September.
    2. Rob van Tulder & Ans Kolk, 2001. "Multinationality and Corporate Ethics: Codes of Conduct in the Sporting Goods Industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(2), pages 267-283, June.
    3. Prabhir Poruthiyil, 2013. "Weaning Business Ethics from Strategic Economism: The Development Ethics Perspective," Journal of Business Ethics, Springer, vol. 116(4), pages 735-749, September.
    4. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    5. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    6. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    7. Jensen, Michael C., 2002. "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Business Ethics Quarterly, Cambridge University Press, vol. 12(2), pages 235-256, April.
    8. Doh, Jonathan & Husted, Bryan W. & Matten, Dirk & Santoro, Michael, 2010. "Ahoy There! Toward Greater Congruence and Synergy Between International Business and Business Ethics Theory and Research," Business Ethics Quarterly, Cambridge University Press, vol. 20(3), pages 481-502, July.
    9. Logsdon, Jeanne M. & Wood, Donna J., 2002. "Business Citizenship: From Domestic to Global Level of Analysis," Business Ethics Quarterly, Cambridge University Press, vol. 12(2), pages 155-187, April.
    10. Yadong Luo, 2006. "Political behavior, social responsibility, and perceived corruption: a structuration perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 747-766, November.
    11. Yadong Luo, 2004. "An Organizational Perspective of Corruption," Management and Organization Review, International Association of Chinese Management Research, vol. 1(1), pages 119-154, June.
    12. Muel Kaptein & Mark Schwartz, 2008. "The Effectiveness of Business Codes: A Critical Examination of Existing Studies and the Development of an Integrated Research Model," Journal of Business Ethics, Springer, vol. 77(2), pages 111-127, January.
    13. Kelly Martin & John Cullen, 2006. "Continuities and Extensions of Ethical Climate Theory: A Meta-Analytic Review," Journal of Business Ethics, Springer, vol. 69(2), pages 175-194, December.
    14. Kim, Bongjin & Prescott, John E. & Kim, Sung Min, 2005. "Differentiated governance of foreign subsidiaries in transnational corporations: an agency theory perspective," Journal of International Management, Elsevier, vol. 11(1), pages 43-66, March.
    15. Kathleen M. Eisenhardt, 1985. "Control: Organizational and Economic Approaches," Management Science, INFORMS, vol. 31(2), pages 134-149, February.
    16. Sama, Linda M., 2006. "Interactive Effects of External Environmental Conditions and Internal Firm Characteristics on MNEs’ Choice of Strategy in the Development of a Code of Conduct," Business Ethics Quarterly, Cambridge University Press, vol. 16(2), pages 137-165, April.
    17. Daryl Koehn, 2013. "East Meets West: Toward a Universal Ethic of Virtue for Global Business," Journal of Business Ethics, Springer, vol. 116(4), pages 703-715, September.
    18. Patrick Erwin, 2011. "Corporate Codes of Conduct: The Effects of Code Content and Quality on Ethical Performance," Journal of Business Ethics, Springer, vol. 99(4), pages 535-548, April.
    19. Maureen Ambrose & Anke Arnaud & Marshall Schminke, 2008. "Individual Moral Development and Ethical Climate: The Influence of Person–Organization Fit on Job Attitudes," Journal of Business Ethics, Springer, vol. 77(3), pages 323-333, February.
    20. Sorge, Arndt, 2005. "The Global and the Local: Understanding the Dialectics of Business Systems," OUP Catalogue, Oxford University Press, number 9780199278909.
    21. Scherer, Andreas Georg & Palazzo, Guido & Matten, Dirk, 2009. "Introduction to the Special Issue: Globalization as a Challenge for Business Responsibilities," Business Ethics Quarterly, Cambridge University Press, vol. 19(3), pages 327-347, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:kap:jbuset:v:155:y:2019:i:4:d:10.1007_s10551-018-3903-5 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:132:y:2015:i:3:p:565-577. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Springer Nature Abstracting and Indexing). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.