CORPORATE GOVERNANCE AND PUBLIC POLICY: A CROSS-SECTORAL ANALYSIS OF ACCOUNTABILITY MECHANISMS

Abstract

Corporate governance and public policy have become increasingly intertwined in the development of accountability strategies that impact on organisational integrity, transparency and trust. Reprinted in Key Debates in New Political Economy (Taylor and Francis, 2018) This paper examines the role of accountability mechanisms horizontally applied across sectors, informed by both corporate governance and public governance. The research problem focuses on the continued disconnect between formal accountability regulations and their enforcement in practice that negatively impacts stakeholder confidence.

To do this, a cross-sector review of the literature is used to explore how governance structures in business corporations and public sector organizations facilitate or hinder accountability. The approach integrates conceptual analysis with a comparative perspective informed by extant governance frameworks, policy documents and academic debates.

Main results show that, although targeted at shareholder protection and regulatory compliance, inspired governance arrangements differ from public policy frameworks that seek to better serve people’s welfare and democratic accountability. But both are even more compromised dynamics today: regulatory capture, lax enforcement and poor stakeholder involvement. The analysis discusses mechanisms for narrowing these gaps, such as independent oversight bodies, transparency legislation, and participatory governance.

This study suggests that enhanced accountability can emerge from a synthesis of corporate governance mechanisms with principles of public policy. The paper concludes with suggestions for improving commitments to a cross-sectoral approach, institutional changes and innovative accountability mechanisms to foster sustainable governance results.