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Article
Publication date: 5 January 2015

Charles KN Lam and S.H. Goo

The purpose of this paper is to demonstrate how Confucianism can be applied in the areas that are now governed by company law in the common law system and how it can play…

Abstract

Purpose

The purpose of this paper is to demonstrate how Confucianism can be applied in the areas that are now governed by company law in the common law system and how it can play a role in improving corporate governance. A gentleman in the context of Confucianism tends to be inclusive and broad-minded in embracing the interest of different stakeholders. In fact, he will balance the interests of shareholders and other stakeholders if there is any inherent conflict and try to achieve a win-win situation. Ultimately, he will run the company not just for profit-making but for social justice and commitment.

Design/methodology/approach

The authors examine the leading cases in Hong Kong and the United Kingdom about the law of fiduciary duty and the duty of care and its relationship with Confucianism. In this respect, we review the teachings of the traditional Confucian texts and use Confucianism to fill in the gap where common law rules cannot reach. In addition, we adopt a comparative study approach in examining the law of directors’ duties in Hong Kong, China and the United Kingdom.

Findings

It can be seen that the concept of fiduciary duty and duty of care is quite complicated and evolving and always subject to the interpretations of the court from time to time. For fiduciary duty, the term itself is quite conceptual and not immediately available to the general public. But loyalty in the context of Confucianism is a very lively and down-to-earth moral principle. Besides, fiduciary duty is imposed from outside, where directors had no choice but to accept. But loyalty in the context of Confucianism is something inherent and something from within. It is a moral principle that if you deeply understand the meaning of it, you will automatically accept it as a good virtue and your conduct will naturally be guided by such a principle. Confucianism can thereby be used to fill the gap where rules and regulations cannot reach. Confucian business ethics and common law rule should be complementary to each other in the development of a Chinese corporate governance system.

Originality/value

This paper is the first of its kind in discussing the relationship between the law of directors’ duties and Confucianism. It argues that Confucianism plays a crucial role in guiding the behavior of the directors and can supplement the abstract principles of directors’ duties in the context of a Chinese corporate governance system.

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Article
Publication date: 3 August 2015

Bryane Michael and S.H. Goo

The purpose of this paper was to determine to what extent Hong Kong’s experience proves (or disproves) theories from corporate governance in the areas of family ownership…

Abstract

Purpose

The purpose of this paper was to determine to what extent Hong Kong’s experience proves (or disproves) theories from corporate governance in the areas of family ownership, concentration, self-dealing in Hong, executive compensation and other issues. This paper – written in the comparative corporate governance tradition – uses data from Hong Kong to discuss wider trends and issues in the corporate governance literature.

Design/methodology/approach

The authors use the comparative corporate governance approach – exposing a range of corporate governance theories to the light of Hong Kong data. The authors purposely avoid over-theorising – leaving the data to speak for themselves for other researchers interested in such theorising.

Findings

The authors find that Hong Kong presents corporate challenges that are unique among upper-income jurisdictions – in terms of potentially harmful (shareholder value diminishing) family relationships, shareholder concentration and self-dealing by insiders. The authors also show that excessive executive compensation, accounting and audit weaknesses do not pose the same kinds of problems they do in other countries. The authors provide numerous comments on theoretical papers throughout the presentation in this paper.

Research limitations/implications

The authors chose a relatively unused research approach that eschews theory building – instead, the authors use data from a range of sectors to build an overall picture of corporate governance in Hong Kong. The authors subsequently affirm or critique the theories of others in this paper.

Practical implications

The original analysis conducted by the authors provided 22 recommendations for revising listing rules for Hong Kong’s stock exchange. Others – particularly Asian officials – should consider Hong Kong’s experience when revising their own corporate governance listing rules and regulations.

Originality/value

This paper offers new and original insights in four directions. First, the authors use the empiricist’s method – presenting data from a wide range of corporate governance areas to comment on and critique existing studies. Second, the authors provide a system-wide view of corporate governance – showing how different parts of corporate governance rules work together using concrete data. Third, the authors provide a new study in the comparative corporate governance tradition – another brick in the wall that is “normal scientific progress”. Fourth, the authors pose tentative resolutions to highly debated questions in corporate governance for the specific time and place of Hong Kong in the early 2010s.

Details

Corporate Governance, vol. 15 no. 4
Type: Research Article
ISSN: 1472-0701

Keywords

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Article
Publication date: 5 October 2015

Charles KN Lam and S.H. Goo

The purpose of this paper is to discuss two important aspects of enforcement of ethical standards: indirect enforcement, that is the Confucian approach, and common law…

Abstract

Purpose

The purpose of this paper is to discuss two important aspects of enforcement of ethical standards: indirect enforcement, that is the Confucian approach, and common law enforcement. In the context of Confucianism, one must adopt the ethical teachings in a moderate or “middle” way. We should not be too attached to the liberal interpretation of the Confucian texts but must have the wisdom to apply the concepts case-by-case. The issue then is if there are no legal consequences or punishment, then how we can ensure that someone will continue to comply with the standards.

Design/methodology/approach

The authors analyze the Confucian texts in relation to the enforcement of the ethical standards. The authors investigate the Entity Maximization and Sustainability Model by referring to the exit option, the voice option, the influence exerted on the board of directors, the sending of the Confucian representatives to sit on the board of directors, the oppression remedy and statutory derivative actions. The authors adopt a comparative study approach and argue that the Confucian enforcement of ethics can fill in the gap where common law rules of procedure cannot reach in the context of Chinese corporate governance system.

Findings

By referring to the Confucian teaching, there are several ways to encourage the superior to follow the ethical standards, namely, education, fear of punishment by society, peer pressure, intrinsic value, continuing education and codification of Confucian value/moral standards. In addition, there are several enforcement options based on the Entity Maximization and Sustainability Model, which is highly relevant to the enforcement model of Confucianism.

Originality/value

It is the first of its kind in strengthening the enforcement of Chinese business ethics by adopting the Confucian approach and common law approach. The two are not mutually exclusive but complementary with each other to bring the enforcement of Chinese business ethics to the next level.

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Article
Publication date: 20 July 2012

Masao Nakamura and W. Mark Fruin

The Chinese economy, among other developing economies in Asia, has experienced extraordinary growth in the last decade. Yet, for China and other newly emerging economies…

Abstract

Purpose

The Chinese economy, among other developing economies in Asia, has experienced extraordinary growth in the last decade. Yet, for China and other newly emerging economies in Asia to grow in a sustainable manner, good corporate governance and management mechanisms must be in place. The authors aim to explore this issue in this paper. The authors also aim to particularly point out that Japan's experience both before after the Second World War will be relevant as a model for China's public and business development policy decision‐making.

Design/methodology/approach

The authors apply well‐established theories of economic development and organizational structures of business organizations to Japan's experience before and after the Second World War and then to contemporary China's experience. The analysis of Japan uses the substantial research findings on the development of that country available in the business history literature.

Findings

The paper's analysis shows multiple ways in which China and other emerging East Asian economies can take advantage of Japan's experience (which is called the Japan model here) for their own development policies and achieve sustainable growth in the long run. For example, it is expected that Japan's experiences may be relevant in areas such as: firm formation and the utility of business groups of various types; development of industrial relations and employment practices; interactions between business and government in the promotion of economic development; and how these factors relate to technology advances on a worldwide basis.

Originality/value

The findings reported in this paper also contribute marginally to the literature by considering the recent experience of Chinese private and state‐owned corporations, including international joint ventures, in the context of Japan's experience in its economic and business development history.

Details

Journal of Asia Business Studies, vol. 6 no. 2
Type: Research Article
ISSN: 1558-7894

Keywords

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Article
Publication date: 3 July 2020

Wan-Ju Chou and Bor-Shiuan Cheng

While current management theory is largely based on economic assumptions, there is evidence to suggest capitalism is at a crossroads. Humanistic management is accordingly…

Abstract

Purpose

While current management theory is largely based on economic assumptions, there is evidence to suggest capitalism is at a crossroads. Humanistic management is accordingly proposed as an alternative new paradigm. The present study follows this approach in considering Confucianism as a humanistic practice. The purpose of this study is to explore humanistic leadership displayed by a Confucian leader and how he/she presents humanistic concern in corporate management to pursue the common good.

Design/methodology/approach

This study adopted a structured–pragmatic–situational approach to conduct a case study and collected data from three sources: semi-structured interviews, consultant observations and archival data.

Findings

The findings reveal that a Confucian leader takes all stakeholders' interests into account while engaging in corporate management and displays humanistic behaviors toward the stakeholders that are in line with five Confucian virtues. The leader cultivates the employees as Confucian humanistic agents. These employees accordingly act as bridges to transmit the humanistic spirit to their customers and other industries in the same market. To initiate an industry change to achieve collective welfare, a Confucian leader must first influence his/her primary stakeholders. The primary stakeholders next collectively influence the secondary stakeholders (i.e. the industry). Consequently, the overall goal of the common good is ultimately sustained.

Originality/value

This study identifies valuable practical implications for humanistic practices in corporate management from a Confucian perspective. In addition, this study takes a significant academic step forward by illuminating the humanistic paradigm.

Details

Cross Cultural & Strategic Management, vol. 27 no. 4
Type: Research Article
ISSN: 2059-5794

Keywords

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Article
Publication date: 1 October 2018

Yi Liu, Christopher Chan, Chenhui Zhao and Chao Liu

This study aims to empirically examine knowledge management practices in China with the purpose to provide a holistic view regarding the current status of knowledge…

Abstract

Purpose

This study aims to empirically examine knowledge management practices in China with the purpose to provide a holistic view regarding the current status of knowledge management at both national and organizational levels.

Design/methodology/approach

Using a survey method, this study collected primary data from organizations across several regions in China. The data were analyzed to detect possible relationships among institutional force, organizational culture and knowledge management process in Chinese organizations. More specifically, to what extent are these relationships moderated by national culture?

Findings

While knowledge management practices in China were partly influenced by institutional forces, most of the predicted connections between organizational culture and knowledge management were supported. In addition, the dynamic nature of national culture is predominant, that pervasively influencing knowledge management processes and thus contextualization determines how knowledge is being managed in China. Indeed, the ideologies of relationships and trust are key vehicles for knowledge management in the Chinese organizations.

Practical implications

This study comprehensively reviews existing literature to form an integrative framework, which is under explored in a Chinese context. Such initiative helps scholars and practitioners to gain a full understanding of knowledge management, in general, in the Chinese business environment in particular.

Originality/value

This paper provides a detailed and empirical insight into the knowledge management practices in Chinese organizations and suggests that knowledge management in a distinctive and yet diverse cultural context should be considered with caution.

Details

Journal of Knowledge Management, vol. 23 no. 4
Type: Research Article
ISSN: 1367-3270

Keywords

Content available
Article
Publication date: 26 October 2020

Hamidah Nayati Utami, Bambang Eka Cahyana, Umar Nimran and Mohammad Iqbal

This research was conducted with the aim of examining and explaining the effect of strategic leadership, corporate governance, organizational culture, business…

Abstract

Purpose

This research was conducted with the aim of examining and explaining the effect of strategic leadership, corporate governance, organizational culture, business infrastructure and corporate alignment as determinants of corporate hospitality; testing and explaining the direct effects of corporate hospitality and corporate sustainability.

Design/methodology/approach

This research used a quantitative approach with a survey method. The research population was all subsidiaries, branches and departments in PT Pelindo 1 (Persero). The sample size in this research was n = N = 61, which covered 5 subsidiaries, 17 branches and 39 directorates at PT Pelindo 1 (Persero). Data analysis was done with inferential statistics using WarpPLS analysis using the help of WarpPLS package computer programs.

Findings

There is a significant and positive direct effect between Strategic Leadership, Corporate Culture, Corporate Governance, Business Infrastructure and Corporate Alignment on Corporate Hospitality which means higher Strategic Leadership, Corporate Culture, Corporate Governance, Business Infrastructure and Corporate Alignment will result in a higher Corporate Hospitality. The analysis also shows that there is a significant and positive indirect effect between Strategic Leadership, Corporate Culture, Corporate Governance, Business Infrastructure and Corporate Alignment on Corporate Sustainability through Corporate Hospitality which means higher Strategic Leadership, Corporate Culture, Corporate Governance, Business Infrastructure and Corporate Alignment will lead to higher Corporate Sustainability through Corporate Hospitality.

Originality/value

The originality of this research can be proven from the lack of research on hospitality. Some other research on hospitality, mostly doing research at airports, hospitals and hotels. However, this research was conducted at the port, where company friendliness is a discipline that includes many marketing studies.

Details

International Trade, Politics and Development, vol. 4 no. 2
Type: Research Article
ISSN: 2586-3932

Keywords

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Article
Publication date: 13 July 2010

Cheng Wei‐qi

The paper aims to discuss the amended provisions relating to protection of minority shareholders (PMS) in the newly amended Chinese Company Law and evaluate whether it…

Abstract

Purpose

The paper aims to discuss the amended provisions relating to protection of minority shareholders (PMS) in the newly amended Chinese Company Law and evaluate whether it adequately protects the interests of minority shareholders.

Design/methodology/approach

In total, 26 cases will be examined by discussing the characteristics of the relevant parties involved, specifically plaintiffs, defendants, their lawyers, judges and also the grounds of complaint. A comparison will be made between the cases decided by following the first Company Law (1994) and the cases decided in accordance with the newly amended Company Law (2006).

Findings

The findings indicate that the amended Company Law has removed certain drawbacks in PMS present in the first Company Law (1994) but the New Company Law can protect interests of minority shareholders only to a certain extent. Further amendments are still needed.

Originality/value

This is one of the first studies to actually examine the implementation of PMS‐related provisions in the newly amended Company Law.

Details

International Journal of Law and Management, vol. 52 no. 4
Type: Research Article
ISSN: 1754-243X

Keywords

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Book part
Publication date: 13 December 2010

Tineke Lambooy

In the Netherlands, the ‘Tabaksblat Code’ (the Dutch corporate governance code of December) was a semi-private regulation instigated by the Dutch government, the stock…

Abstract

In the Netherlands, the ‘Tabaksblat Code’ (the Dutch corporate governance code of December) was a semi-private regulation instigated by the Dutch government, the stock exchange and industry associations to restore trust in the public equity markets. The aim was ‘to put the relationship between listed companies and providers of capital under the microscope’ in order to establish a new balance with a larger role for the shareholders (Tabaksblat, 2003, p. 59).

Details

Reframing Corporate Social Responsibility: Lessons from the Global Financial Crisis
Type: Book
ISBN: 978-0-85724-455-0

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Article
Publication date: 7 August 2017

Orapan Khongmalai and Anyanitha Distanont

Corporate governance (CG) is a mechanism for directing, administering and controlling organisations. CG has become a vital component in driving efficient operation of…

Abstract

Purpose

Corporate governance (CG) is a mechanism for directing, administering and controlling organisations. CG has become a vital component in driving efficient operation of state-owned enterprises (SOEs). The purpose of this paper is to examine the relationship between CG practices and the performance of Thai SOEs.

Design/methodology/approach

This research is quantitative in nature; data were collected through a questionnaire, which was distributed to a sample of 1,140 respondents from 38 Thai SOEs. Structural equation modelling was used for data analysis.

Findings

The results indicate that the board of directors has a direct negative influence on the performance of Thai SOEs. However, management systems play a significant role in mediating the relationship between boards of directors and the performance of Thai SOEs. Additionally, corporate governance practices should be implemented not only at the board-of-director level but also at all levels of operation throughout the organisation.

Practical implications

To develop effective boards of directors, SOEs should be pushed to develop the appropriate strategic management systems (i.e. risk management, internal controls, internal audits, human resource management and information technology). These systems allow boards of directors to access and use important information that will help guide the business process, which leads to performance improvement in SOEs.

Originality/value

This empirical study investigates the relationships between CG practices and the performance of SOEs in the context of developing countries.

Details

Corporate Governance: The International Journal of Business in Society, vol. 17 no. 4
Type: Research Article
ISSN: 1472-0701

Keywords

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