Studies in Flawed Governance I: Companies

Abstract

In Part I of this book we considered the theoretical framework of micro and macro governance, with a particular focus on expectations, requirements, and accountabilities. Against this framework we have discussed how the governance process might fail and, when it does, what might happen to a company and its stakeholders. In this chapter, and the one that follows, we apply theory to practice by examining a series of case studies relating to flawed governance within individual companies and across broader industry groups. Our intent is to link the theoretical discussion to the reality of daily corporate actions, and demonstrate that failures can arise and damage stakeholders. It also helps us consider, in Part III, the types of reforms that can build a more secure process and minimize the possibility of injury to corporate stakeholders.