Factors Directing Corporate Behavior
The business landscape of the 21st century is littered with companies that have failed to keep abreast of the changing trends, ideas and the pace of technological change. In this context it is important more than ever for corporates to practice good corporate governance since an approach that is fair and ethical as well as transparent is likely to lead to greater productivity than an approach that favors short term profits and encourages cutting corners. Hence, it is pertinent to look at some of the factors that drive corporate behavior from the perspective of good corporate governance.
What is clear from the preceding discussion is that among the various factors that direct corporate behavior, the one underlying or common theme is that the interaction of markets and market players often dictates the outcome more than anything else. The prevailing view that markets know best has somewhat been challenged in recent years. Hence, more than ever, there is a need for corporates to rise to the occasion and present solutions instead of finger pointing and indulging in blame games.
Finally, corporates exist within the ecosystem of the market and hence what moves the market moves them as well. So, the factors that direct corporate behavior are often found in the market ecosystem that is prevalent in a particular country of region.
- The Role of the Government
- Accountability of Corporate Decisions
- Significance of Corporate Behavior
- Corporate Governance and Finance
- CG after Financial Crisis
Authorship/Referencing - About the Author(s)
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