Dimensional Corporate Governance: An Inclusive Approach in Summary

Abstract

Adrian Cadbury a UK industrialist and entrepreneur (who chaired the Cadbury Committee Report on Corporate Governance 1992—the very first of its kind worldwide) and the World Bank’s Corporate Governance Report 2000 have both explained Corporate Governance as a field which is concerned with “holding the balance between economic and social goals and between individuals and communal goals, the framework of corporate governance is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources, the aim is to align as nearly as possible the interests of individuals, corporations and society”. This explanation clearly suggests that corporate governance is about running corporate entities in a socially, economically and environmentally responsible manner so as to ensure that all interested stakeholders suffer no loss or adverse impacts as a result of the operational activities of the entity being governed by those at the helm of that corporate entity management hierarchy. The field also provides the framework by which rights and responsibilities are shared between corporate actors and society. A well governed corporation for example will not indulge in unethical practices. This means that human rights abuses, corrupt and fraudulent practices, irresponsible actions against any of its stakeholders; whether primary or secondary will have no place in that corporation’s set up. Which means everyone will live and operate in a tranquil world.