Corporate Governance and Complexity Theory

Corporate Governance and Complexity Theory

Marc Goergen, Christine A. Mallin, Eve Mitleton-Kelly, Ahmed Al-Hawamdeh and Iris Hse-Yu Chiu

This multidisciplinary book takes an innovative approach to corporate governance by linking governance and complexity theory. It provides important new insights into why governance systems are failing and what may be done to improve this situation.

Preface

Marc Goergen, Christine A. Mallin, Eve Mitleton-Kelly, Ahmed Al-Hawamdeh and Iris Hse-Yu Chiu

Subjects: business and management, corporate governance, economics and finance, behavioural and experimental economics, corporate governance, law - academic, corporate law and governance

Extract

This book is the result of work undertaken for a larger project entitled ‘Learning from Complexity: Enabling Governance Frameworks’. The project has benefited from the financial support of the Economic & Social Research Council (ESRC).1 The project’s concept started at an Ideas Factory on Corporate Governance in July 2006 at Highgate House, Northampton. The Ideas Factory was held by the ESRC in conjunction with the Department for Trade and Industry (DTI) and the Advanced Institute of Management (AIM) Research. The main aim of the Ideas Factory was to encourage participants ‘to think outside their traditional research areas, reassess the key issues which impact on the topic of corporate governance and interact with colleagues in distinct disciplines’.2 This book reflects the multidisciplinary approach to corporate governance research that the Ideas Factory aimed at encouraging. The authors would like to acknowledge the contribution made by Eve Mitleton-Kelly and the Complexity Group at the London School of Economics & Political Science (LSE) to the application of complexity theory to corporate governance. As will be seen from the literature review in Chapter 4, on corporate governance and complexity, the field is rather limited. The Complexity Group was set up at LSE by Mitleton-Kelly in 1994 to develop a theory of complex social systems and an appropriate methodology to address complex problems in organizations in both the private and public sectors. Over the past 15 years, the Group has been working with AstraZeneca, BT, BAe Systems, Citibank (New York & London), GlaxoSmithKline, the Humberside TEC, Legal & General,...