Corporate Governance as Social Responsibility: A Meta-regulation Approach to Raise Social Responsibility of Corporate Governance in a Weak Economy

Corporate governance (CG) denotes the rules of business decision-making and directs the internal mechanism of companies to follow the output of the rules. It includes the customs, policies, laws and institutions as a set of processes that affects the way in which a corporation is directed, administered or controlled. In the aftermath of some corporate scandals and with the rise of civil society campaigns against the negative impact of corporate operations on the environment, corporate governance has started emphasizing issues that go beyond this traditional focus to touch on corporate ethics, accountability, disclosure and reporting. ‘As companies seek to assure regulators and investors that they are fully transparent and accountable, corporations have increasingly pledged their commitment to honest and fair corporate governance principles on a wide spectrum of business practices’ (Gill, 2008, p. 453).