A principles-based Anglo governance system is not a science but an art

Anglo governance systems rely of a number of controls to align shareholder and boards of director’s interests. In general they are referred to as market control, regulatory control, and political and cultural control. Agency theory proposes that these control mechanisms are necessary as human nature is such that directors and managers act in a self-interested and boundedly rational manner in decision-making that can result in sub optimality. Notwithstanding that each country within the Anglo system accepts such controls are necessary they have their own foci and priorities, being a product of their own system’s characteristics. This paper through interviewing a number of Australian business executives adds to the academic literature by providing evidence from the field of the important characteristics of the Australian governance system, the drivers of change and the effectiveness of the principles-based approach. It argues that debate needs to move beyond the principles versus rules approach to look at how firms can be provided with more guidance in operationalising some of the principles that appear to be key to governance effectiveness. It concludes that there is a need for a holistic model of governance that is broader than that focusing on the control/legalistic approach; that top management is important in setting and driving the in-firm governance agenda; that the public needs to be informed and educated about governance and its importance; and that disclosure still requires an improvement in quality.

Folate fortification : a case study of public health policy-making

Introducing Evidence Based Health Policy: Problems and Possibilities, Section 1: What is the Problem?, 1: Competing Rationalities: Evidence based Health Policy, 2: Beyond Two Communities, Section 2: What does Evidence Mean?, 3: Evidence based Medicine - The Medical Profession and Health Policy, 4: Mind The Gap: Assessing the Quality of Evidence for Public Health Problems, 5: Health Policy and Normative Analysis: Ethics, Evidence and Politics, 6: What is New in Health Information? Evidence for Health Consumers and Policy Making, 7: From Evidence based Medicine to Evidence based Public Health, Section 3: Policy Case Studies, 8: The Viagra Affair: Evidence as the Terrain for Competing Partners, 9: Folate Fortification: A Case Study of Public Health Policy-Making in a Food Regulation Setting, 10: The Supply and Safety of Blood and Blood Products - Evidence, Risk and Policy, 11: The Development of Nurse Practitioner Policy, 12: Creating Healthy Public Policy for Oral Health: How was the Evidence Used?, 13: Regulation of Traditional Chinese Medicine in Victoria, 14: The Victorian Primary Health Care Reforms: A Case Study of Evidence-based Policy Making, 15: Evidence-based Practice in the Australian Drug Policy Community, 16: Challenging the Evidence - Women's Health Policy in Australia, 17: Evidence and Aboriginal Health Policy, 18: The Limits to Technical Rationality in the Health Inequalities Policy Process, 19: Evidence-based policy: A Technocratic Wish in a Political World, Section 4: Is the transfer of evidence into policy possible?, 20: The Community Model of Research Transfer, 21: Getting Research Transfer into Policy and Practice in Maternity Care, 22: Improving the Research and Policy Partnership: An Agenda for Research Transfer and Governance, 23: Framing and Taming 'Wicked' Problems

Outlaw governance : boxing and western law

Outlaw Governance examines two-hundred years of Western legal development associated with the highly contentious sport of boxing. Drawing on an extensive sample of reported legal cases from the United Kingdom, the United States, Australia, New Zealand and Canada, this volume demonstrates how the sport continues to evolve and generate enormous popularity despite considerable legal, medical and political resistance. This investigation shows how laws relating to crime, negligence, contract, public licensing and media regulation have been applied to the sport and its practitioners in each jurisdiction, often with a consistently restrictive and paternalistic focus. By using popular sporting narratives to give life to each legal dispute, this text provides a critical insight into the operation and limits of Western legal method which is accessible to any reader.

Risk allocation in public-private partnership projects : an innovative model with an intelligent approach

Both the increasing private participation in public projects and the critical importance of appropriate risk allocation to the success of Public-private partnership (PPP) projects justify specific research on how to establish effective risk allocation strategies in PPP projects. Partner’s risk management capability is currently the main concern to risk allocation in PPP projects. Following the transaction cost economics, it is argued that factors such as partner’s commitment and risk management structure should be considered simultaneously in order to develop effective risk allocation strategies. Based on the holistic capability-commitment governance-driven view, this paper proposed a model for generating an optimal risk allocation strategy in PPP projects. The model is demonstrated and described. An artificial intelligent technique integrated with fuzzy logic for model testing and validation is then introduced and justified. The innovative model is expected to provide a logical and complete understanding of the risk allocation strategy selection process, and to provide stakeholders with a richer framework than previously existing ones to guide their decision-making on risk allocation strategies.

The association between corporate governance attributes and audit fees in Malaysia : ethnicity implications

This study extends the literature on audit pricing by examining the relationship between audit fees and corporate governance factors, namely audit committee and CEO characteristics of 605 public-listed companies in Malaysia. The study specifically investigates the association between audit fees and the ethnicity attributes of the CEO (bumiputra or not) and audit committee members (i.e. proportion of bumiputra membership), as well as audit committee characteristics pertaining to the proportion of independent members, financial expertise and diligence. The findings indicate audit committee independence is significantly and positively associated with audit fees, while financial expertise has a negative association with audit fees. We however do not find any relationship between audit fees and audit committee diligence as measured by meeting frequency. In addition, the data also reveals that firms with bumiputra CEOs and bumiputra dominated audit committees hold significant and positive relationships with audit fees.

Corporate social responsibility : corporate reputation, business performance and public liability

Corporate Social Responsibility (CSR) may be viewed as a business strategy rather than a philanthropic concept. The increasing use of CSR as a corporate core strategy, in reaction to consumers‘ growing sentiments, can influence aggregate consumption and consumers‘ quality of life. As such, CSR would be of interest to the policy makers and may become subject to corporate governance and control mechanism. CSR is largely unregulated. Reliance on corporations‘ self-restraint and voluntary initiatives is inadequate to protect the society and avoid the disadvantages that may emerge from the potential deceptive practices in using a CSR strategy. This study investigates the evidence of economic benefits as incentives to corporations for using CSR. CSR is measured in terms of the firm‘s relationships with primary stakeholders. A model is constructed to identify the primary stakeholders and to estimate the association between CSR, corporate reputation and business performance. Policy implications of CSR are discussed.

Outsourcing internal audit services : an empirical study on Queensland public-sector entities

A study of Queensland public-sector entities suggests outsourcing of internal audit services to be extensive (88%), with 51% of respondent agencies adopting co-sourcing and 37% of the agencies fully outsourcing. Results suggest that internal audit outsourcing is largely adopted for non-financial reasons such as lack of technological know-how and service quality rather than financial reasons. Deficiencies of current governance arrangements concerning internal audit outsourcing include (1) a lack of audit committee involvement in outsourcing processes, particularly in co-sourcing entities, and (2) inadequate segregation of duties whereby the same senior management is involved in key arrangements including selection, approval, negotiation and evaluation of contractual performance.

New governance, green planning and sustainability : Tasmania together and growing Victoria together

Bridgman and Davis(2000:91) have argued that ‘ideally government will have a well developed and widely distributed policy framework, setting out economic, social and environmental objectives’. This article compares and evaluates two such frameworks or plans, Tasmania Together and Growing Victoria Together, in terms of their potential to promote sustainability. It argues that they are very different exercises in new governance, aimed at reconnecting with community priorities and at redirecting macro-policy setting away from a preoccupation with economic priorities, respectively. Nevertheless, both plans have the capacity to ‘green’ state planning, in Tasmania in terms of more purposeful benchmarks, and in Victoria in terms of enhanced sustainability emphasis in the macro-policy setting. The article encounters tensions in its review of the plans between deliberation and planning, policy empowerment and policy progress, and policy institutionalisation and politicisation as means of achieving policy change. It finds that whilst Tasmania and Victoria are re-engaged states that are reinventing state policy, as yet they are failing to meet the governance challenges of sustainability.

Healthy public in all policies

The introduction of the notion of ‘Healthy Public Policy’ in the Ottawa Charter is considered a relevant response to the emerging social-political context of the 1970s and 1980s. It also remains an important, yet volatile, argument for the consideration of policy impact on health. In our analysis, however, those that continued to argue for Healthy Public Policies and those who should develop them have remained naı¨ve about the profound political dimensions of this exercise. Applying insights from the political sciences, we argue that greater levels of connectedness and commitment across civil society, and governance integration between sectors and levels of politicking and action are required for the further success of health integrated policies. The role of communities and the key communicative drivers of the Ottawa Charter (enable, mediate and advocate) need to be strengthened in more astute strategies.

Economic accountability in the context of local governance in the Philippines : a structural equation modelling approach

This study posits that by virtue of the enabling role of local governments, the economic development of their locality must be at the core of their public accountability, which is referred to here as “economic accountability”. Grounded on this idea of accountability, along with enabling theory and institutional theory, the study presents empirical evidence supportive of the argument that the enabling role of local governments, as manifested in a capacity to establish or adhere to formal institutional arrangements, has a direct impact on the entrepreneurial strategic posture and performance of local small and medium enterprises (SMEs) which are key players in local economic development.The results of the structural equation modelling support the view that institutional arrangements as manifestations of the enabling role of city governments are positively associated with an entrepreneurial strategic posture of local firms, which consequently improves the firms’ overall economic performance. Therefore, SME development in particular, and local economic development in general, should be part of the economic accountability of local governments in the Philippine context of local governance.

Iraq and the Arab revolutions : protesting the failure to democratise governance

As the Arab Revolutions swept across the Middle East and North Africa in late 2010 and into 2011, Iraqis were confronted with the failures of their own democracy to deliver on the many promises made to them since 2003. This led to weeks of scattered protests across Iraq, culminating in the “Day of Rage” (February 25, 2011) in which thousands of protestors took to the streets in at least 17 separate demonstrations across the country following Friday prayers. On the surface, these protests shared much in common with others across the region: the use of Facebook and other social media to promote the protests, and the focus on corruption, unemployment and poor public infrastructure. Also similar was the reaction of key Iraqi political figures such as Maliki and Barzani who met Iraqi protests with a mixture of brutal suppression and modest political and economic concessions. However, as this paper will demonstrate, upon closer inspection the Iraqi protests are in fact very different to others across the MENA and are therefore among the most significant for the future of democracy in the region. The Iraqi people were not protesting against an autocratic regime or an entrenched monarchy that had held power for decades, but a relatively new – and supposedly ‘democratic’ - political elite who had been brought to power in the wake of the US invasion. Indeed, while protestors across the region called for more democracy in the form of a written constitution, free and fair elections, a robust media sphere and the rule of law, Iraqis were protesting against the failures of the Iraqi government to democratise such mechanisms of governance (all of which they more or less have). They felt routinely disenfranchised by a state that has manipulated the very institutions and discourses of democracy to retain, rather than diffuse, power.

Global health governance : framework convention on tobacco control (FCTC), the Doha Declaration, and democratisation

Global public health agreements are heralded as a success for the affirmation of the right to health within a complex and contested political landscape. However, the practical implementation of such agreements at the national level is often overlooked. This article outlines two radically different global health agreements: The Doha Declaration on the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement and Public Health; and the Framework Convention on Tobacco Control (FCTC). We identify significant challenges in their implementation, particularly for low and middle income countries. Shifts in the policy network constellations around these two agreements have allowed for some positive influence by civil society. Yet industry influence at the national level constrains effective implementation and those affected by these policies have largely been left on the periphery. The broader provisions of these two agreements have been watered down by vested interests and donor conditions. We advocate for both activist and academic actors to play a significant role in highlighting the consequences of these power asymmetries. Deliberative democracy may be the key to addressing these challenges in a way that empowers those presently excluded from effective participation in the policy process.

Corporate governance and corporate social responsibility disclosures : evidence from an emerging economy

We examine the relationship between corporate governance and the extent of corporate social responsibility (CSR) disclosures in the annual reports of Bangladeshi companies. A legitimacy theory framework is adopted to understand the extent to which corporate governance characteristics, such as managerial ownership, public ownership, foreign ownership, board independence, CEO duality and presence of audit committee influence organisational response to various stakeholder groups. Our results suggest that although CSR disclosures generally have a negative association with managerial ownership, such relationship becomes significant and positive for export-oriented industries. We also find public ownership, foreign ownership, board independence and presence of audit committee to have positive significant impacts on CSR disclosures. However, we fail to find any significant impact of CEO duality. Thus, our results suggest that pressures exerted by external stakeholder groups and corporate governance mechanisms involving independent outsiders may allay some concerns relating to family influence on CSR disclosure practices. Overall, our study implies that corporate governance attributes play a vital role in ensuring organisational legitimacy through CSR disclosures. The findings of our study should be of interest to regulators and policy makers in countries which share similar corporate ownership and regulatory structures.

Governance disclosure on the internet : the case of Australian State Government Departments

This paper examines corporate governance disclosures on the websites of Australian state government departments. The study focuses on the nature and extent of governance information and the ease of finding this information directly on department websites and also in annual reports which are downloadable from websites. Our sample comprises six departments from each of the six states in Australia, giving a sample size of 36 departments. Our findings indicate considerable variability in both the level of disclosure and the accessibility of the information disclosed. The study also highlights a lack of consensus regarding the meaning of governance and what governance comprises, together with the need for a more structured approach to communicating governance information to stakeholders.