University of Banja Luka, Faculty of Agriculture, Bosnia & Herzegovina
2nd International Scientific Conference – EMAN 2018 – Economics and Management: How to Cope With Disrupted Times, Ljubljana – Slovenia, March 22, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Management Koper, Slovenia; Doba Business School – Maribor, Slovenia; Integrated Business Faculty – Skopje, Macedonia; Faculty of Management – Zajecar, Serbia, ISBN 978-86-80194-11-0
This paper is the result of the analysis of the key characteristics of ’good corporate governance’, its ’best practices’ and case studies of corporate scandals in attempt to identify why controls are not enough. The theoreticians and practicioners put great effort in to overcome weaknesses in corporate governance, though these efforts are not a guarantee of a corporations’ survival or success. New variations of old remedies (more rigid controls and supervision) were not just unsuccessful but turned out to be counterproductive. The solution which is just emerging requires a completely new approach – a new paradigm. A new paradigm does not rely on corporate ’governance’ focused on more control and supervision but rather on ’leadership’ based on ’spiritually intelligent’ responsibility. In this context it is not about ’control’ but a ’coordination’ that reconcile various interests, expectations and goals in order to empower the whole system (the corporation together with all the stakeholders) to achieve its goals and realize its raison d’être. This apporach puts a human being and his/her deepest motivational factors, i.e. human nature in the first place since he/she is a creator and carrier of all the processes and systems.
corporate governance, control, organizational culture, coordination, human nature.
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