Corporate Governance, Responsibility and Compassion: Why we Should Care

This chapter argues that a key barrier to responsible corporate governance practice is the hierarchical structure of ‘traditional’ large corporations. This hierarchy, coupled with an individualistic, profit seeking approach, obstructs the broader goals and possibilities of corporate governance. Feminist literature and positive organization scholarship are explored as possible theoretical territories in which solutions to the problems might be found. The ethic of care has a relational focus which recognizes the interdependencies existing inside and outside the organization. Similarly, a literature has grown emphasizing compassion as a behavioural principle. This dual focused approach gives rise to a preference for a more horizontally structured organization - rather than a bureaucratic and hierarchical form - to nurture the relationships involved, with greater care and compassion. This approach, it is argued, offers more fertile ground for positive corporate behaviour.