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The Implications of the New Governance for Corporate Governance

  • John R. Boatright
Chapter
Part of the Studies in Economic Ethics and Philosophy book series (SEEP, volume 40)

Abstract

This chapter examines the implications of the new governance for corporate governance. The main conclusion of this examination is that both the new governance and corporate governance have resulted from broader changes in the competitive environment of business. The main features of these changes are shifts from hierarchical, vertically-integrated firms dependent primarily on financial capital to loose networks that rely heavily on human capital, and from strategies built less on market share and economies of scale to those based more on innovation and quality. These changes have not only driven globalization, which is central to the new governance, but also undermined some of the main assumptions of corporate governance that support shareholder primacy.

Keywords

New governance Corporate governance Globalization Modern industrial revolution Shareholder primacy Theory of the firm Human capital Networks Residual risk Implicit contracts 

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Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  1. 1.School of Business Administration, Loyola University ChicagoChicagoUSA

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