CORPORATE ACCOUNTABILITY - AN IMPACT ON COMMUNITY EXPECTATIONS

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Abstract

This paper anticipates proposals developed by the ’Corporate Governance Council’ set up by the Australian Stock Exchange (ASX) to advise on new guidelines. It identifies the invalidity of the assumptions implicit in the Sarbanes-Oxley Act in the US and the recommendations of the Higgs report in the UK into the role of non-executive directors. The conflicts of directors relying on management information to assess management and the business are considered. Also, the conflicts from the ASX trading its own shares and their requirement that corporations continuously disclose price sensitive information without permitting the market to be continuously informed about the identity of share traders. Ways of ameliorating these problems are suggested based on A New Way to Govern: Organisations and Society after Enron.

Keywords: Conflicts, Corporate Governance, Democracy, Disclosure, Dligarchy, Plutocracy

How to cite this paper: Turnbull, S. (2003). Corporate accountability - an impact on community expectations. Corporate Ownership & Control, 1(1), 26-34. https://doi.org/10.22495/cocv1i1p13