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Factors of Employees’ Effective Voice in Corporate Goverance

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  • Stephen Clapham
  • Robert Cooper

Abstract

Traditionally, corporate governance has focused on the problem of crafting mechanisms to align the interests of owners and managers. The key characteristic has been to minimize the potential for managers to act in their own self-interest at the expense of shareholders. The purpose of this paper is to focus on employees as stakeholders in the governance process. We argue that creating an environment where employees have help in behaving ethically, in the course of their work, is the first step in encouraging them to voice observations of wrongdoing. Seven groups of professionals in the accounting and insurance fields were surveyed during a 10-year period and asked to indicate the extent to which 14 items were helpful in dealing with ethical challenges. Over 2700 responses were analyzed. The findings indicate that professionals think that their organizational culture and policy for voice was more helpful in dealing with ethical dilemmas than was their professional association. Copyright Springer 2005

Suggested Citation

  • Stephen Clapham & Robert Cooper, 2005. "Factors of Employees’ Effective Voice in Corporate Goverance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 9(3), pages 287-313, September.
    • Handle: RePEc:kap:jmgtgv:v:9:y:2005:i:3:p:287-313
    DOI: 10.1007/s10997-005-7421-3
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    References listed on IDEAS

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    1. Elijah Brewer & Nisreen Darwish & Douglas D. Evanoff, 2003. "Corporate governance: implications for financial services firms," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Dec.
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