THE IMPACT OF THE LACK OF TRANSPARENCY ON CORPORATE GOVERNANCE: A PRACTICAL EXAMPLE

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Abstract

The conceptual elements of transparency in the business sector and the transparent management of companies became even more desired features as a result of the rapid technological advancements we are witnessing especially after 2010. With the global spread of social media and online platforms, the networked and digital age is a new environment where companies have to adapt in order to be efficient, and their corporate governance policies have to be tailored to fit the new requirements. In such environment, the strengthening of the transparency principle is essential also through the examination and comparison of prominent cases, through which the conclusions drawn contribute in fostering the appropriate future use of corporate governance policies and increasing social responsibility with respect to the functioning of the participants of the business sector. The aim of the paper is to highlight the possible adverse effects of the lack of transparency exerted on corporate governance.

Keywords: Corporate Governance, Transparency, Governmental Transparency, Transparent Management, Corporate Scandals

Authors’ individual contribution: The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

JEL Classification: G30, K20

Received: 08.05.2019
Accepted: 04.07.2019
Published online: 05.07.2019

How to cite this paper: Szalay, G. (2019). The impact of the lack of transparency on corporate governance: A practical example. Corporate Law & Governance Review, 1(2), 21-28. https://doi.org/10.22495/clgrv1i2p2