Towards a More ‘Ethically Correct’ Governance for Economic Sustainability

In this paper, we propose that economic sustainability is seen in terms of (inter-temporal and inter-national) value creation. We claim that value appropriation (or capture), can become a constraint to economic sustainability. We propose that for sustainable value creation to be fostered, corporate...

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Bibliographic Details
Main Author: Pitelis, Christos N. (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2013
In: Journal of business ethics
Year: 2013, Volume: 118, Issue: 3, Pages: 655-665
Further subjects:B Agency
B Value creation and capture
B Governance
B Economic sustainability
Online Access: Volltext (JSTOR)
Volltext (lizenzpflichtig)

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520 |a In this paper, we propose that economic sustainability is seen in terms of (inter-temporal and inter-national) value creation. We claim that value appropriation (or capture), can become a constraint to economic sustainability. We propose that for sustainable value creation to be fostered, corporate governance needs to be aligned to public and supra-national governance. In order to achieve this, a hierarchically layered set of ‘agencies’, needs to be diagnosed and the issue of incentive alignment addressed. Enlightened self-interest, pluralism and diversity, as well as a representative supra-national organisation for world-wide economic sustainability can serve as a new, more ‘ethically correct’ governance for economic sustainability, but not a panacea. 
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