Virtues, Compliance, and Integrity: A Corporate Governance Perspective

Abstract

Each succeeding wave of corporate scandal requires unique legislative regulatory reform associated with significant and increasing expenditure. This reflects a failure in the approach to effective corporate governance which was originally designed to protect investors and promote market integrity for business success, for encouraging long-term economic growth, to foster public confidence through developing trust and integrity, and to control and distribute power. Several factors have contributed to this including the dominance of the narrowly defined shareholder-wealth maximization approach which encourages toxic organizational cultures. The continued focus on legal compliance through regulatory and institutional reform cannot ensure justice and inspire organizational excellence. An ethics of virtue promotes and builds integrity capacity in recognizing that those whose business it is to govern ought to aspire toward becoming virtuous.