Business Ethics and Corporate Governance, Second Edition

BENEFITS TO SOCIETY

According to John D. Sullivan, corporate governance brings to the society innumerable benefits. These benefits are as follows:

• A strong and vibrant system of corporate governance can be a major benefit to society. Even in developing countries where shares of most firms are not actively traded on stock markets, adopting standards for transparency in dealing with investors and creditors will bring benefit to all and also it helps to prevent systemic banking crises.
• Research has proved that countries with stronger corporate governance protections for minority shareholders have much larger and more liquid capital markets. Studies of countries that have their laws on different legal traditions show that those with weak systems ...