LINKING CORPORATE GOVERNANCE ISSUES TO THE SYSTEM FRAMEWORK

Abstract

Each passing year, we find that the corporate governance issues has been increasing. The degree and severity of the crimes committed are also reaching new highs. So, the question arises what has changed that suddenly such incidents should rise. Surely, there must have been a big change in the business landscape. Since the beginning of the industrial age, ethics and mutual trust were highly valued. Fudging figures, making exaggerated claims were few and far between. Nowadays, business leaders who were considered as visionaries and thought leaders by the world are embroiled in the greatest scandals along with the organizations that they founded or were a part of. This study endeavors to find out the root cause(s) behind such behaviors and crimes, also outline the common symptoms and their outcomes that happens during the downfall. A correct understanding of the present system and the system’s framework is a necessity to find why these occur. First, we analyze the economic system in which the business operates and then we link how that system affects one’s psychology. An effort is also made to identify the type of people that can succeed in the modern economic system. With this, we can say that the corporate governance issues we are facing today are an outcome of the system, i.e. it is a system result.