Monday, 11 June 2012

Information technology, an enabler in corporate governance

an article by Sherly Elizabeth Abraham, (PhD Student at the College of Computing and Information, University at Albany, State University of New York, USA) published in Corporate Governance Volume 12 Issue 3 (2012)


The purpose of this paper is to understand how information technology can be utilized as a driver of incentives in the decision-making process of corporate governance.
The existing theories in corporate governance are compared to understand the incentives offered to executives. Based on the analysis of the theories presented here, an incentive framework is proposed for corporate executives by utilizing the contributions of information technology.
It is found that find that the stakeholder perspective promotes a value-laden approach to corporate governance as opposed to other views that are unilateral. The study posits tapping in to the values and beliefs of corporate executives to produce viable and lasting results as opposed to monetary incentives. Information technology is proposed as an “enabler” in empowering executives towards promoting a stakeholder perspective.
Practical implications
The paper’s recommendations can be used by researchers, executives and board members to enhance corporate governance through information technology.
The originality of the work presented here is in analyzing the affordances of information technology to enhance decision-making in corporate governance. Information technology is proposed as an “enabler” in empowering executives and board members towards promoting a stakeholder perspective.

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