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Journal cover: Corporate Governance

Corporate Governance

ISSN: 1472-0701

Online from: 2001

Subject Area: Business Ethics and Law

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The sustainability of corporate governance – considerations for a model

Document Information:
Title:The sustainability of corporate governance – considerations for a model
Author(s):Alan L. Jones, (Director of Sustainable Governance Ltd, Richmond, UK), Clive H. Thompson, (Director of Sustainable Governance Ltd, Richmond, UK)
Citation:Alan L. Jones, Clive H. Thompson, (2012) "The sustainability of corporate governance – considerations for a model", Corporate Governance, Vol. 12 Iss: 3, pp.306 - 318
Keywords:Business environment, Change management, Code of conduct, Corporate governance, Organizational behaviour, Organizational change, Risk management, Sustainability
Article type:Research paper
DOI:10.1108/14720701211234573 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Acknowledgements:Received December 2010 Accepted February 2011

PurposeThe purpose of this paper is to seek comment on a proposed new model for measuring and monitoring the sustainability of corporate governance.

Design/methodology/approachThe unprecedented combination of the scarcity of finance, low growth, and environmental pressures, together with new attitudes to employment, makes an extremely challenging environment that demands a more comprehensive concept of sustainability. It is redefined here to encompass the management of all resources, whether they be natural, human, environmental financial or social, and “Sustainable Governance©” is a framework that creates and monitors a structure that husbands the way that all resources are managed for today and for a long term sustainable future. To meet the challenge of the changing world, a 12-point management model is proposed, together with a comprehensive rating system employed to analyse progress and benchmark competitive performance.

FindingsCorporate governance cannot be left to chance in the business climate of the twenty-first century. Public trust has been lost and boards will need to be seen to be in control not only of the present but also of the future. All resources will have to be treated as finite and accountability will be a byword in all corporations. To be sustainable, corporate governance must cover all aspects of corporate resources and activities and it must also be measured in a more formal and transparent manner. This article outlines a model that could be used for this purpose. It is taking measurement beyond the simplistic “scorecard” approach favoured in the past. It is a seed from which the authors expect to see a fertile growth and all comments are welcome to further the model and the process.

Practical implicationsThe choice facing organizations in the twenty-first century is either to react to each set of pressures that come along as they arise, or to take a hard look at the economic, environmental and social context in which they operate, and create a framework that will give them the ability to manage in a long-term sustainable structure.

Originality/valueThis supersedes the scorecard approach for monitoring corporate governance. It is new and untried but the authors seek input and comments from readers.

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