Corporate governance: Towards bonum commune?
Thursday, 19 June 2008 — Yanuar NugrohoPerspective is about bringing together things that seem to have no relation to each other so that they could be more easily understood in a context. It sounds simple. But it helps scrutinising the relationship between noble idea of good governance and hullabaloo of corporate responsibility. Why these two? Firstly, because discourse about good governance today cannot but touch upon the issue of corporate governance. And secondly, because corporate responsibility has become the issue of corporate governance.
It has been admitted that corporations are playing vital role in developments as they create employment, produce goods and services, bring investments and thus economic growth. As no one would disagree that good governance is necessary for development, neither do they contradict the idea that good governance should be applied to corporate world. Even, it flowers a thought that business should be allowed to regulate themselves.
An excerpt of my PhD thesis appears in the 3rd edition of INNO-GRIPS Newsletter, published by the European Commission DG Innovation, Pro-INNO Europe. Below is the text. The full PDF version of the newsletter (only 8 pages) can be downloaded directly from the Pro-INNO EU
The survey (of 268 CSOs during this study) shows that 73.13% of respondent CSOs are formally registered organisations. While this may sound strange recognising that many social movement organisations are informal (Crossley, 2002; Davis et al., 2005; Della-Porta and Diani, 2006), interviews may be able to provide some explanation. The program manager of Yayasan SET explained explicitly that, “in legal terms, all [CSOs] are foundations. What we have [termed as] NGOs, LSMs, CSOs – they are all [legally registered as] foundations” (Kristiawan, interview, 28/10/05). Kristiawan’s explanation confirms findings from previous work. In their attempt to escape from government control, there was a period when many Indonesian CSOs felt it necessary to formally register with the notary as a foundation (yayasan) as this would provide a necessary legal basis for the organisations’ existence and at the same time ‘exempted’ them from current laws aimed at controlling CSOs’ activities (Bunnell, 1996:198; Eldridge, 1995:7-8; Hadiwinata, 2003:95-96).
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dear friends,