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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Religion as an Influential Factor in Corporate Governance Structures
Author(s)
Paul Diaconu, Dan Dumitrescu
Full-Text PDF
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DOI:10.17265/1537-1514/2013.02.009
Affiliation(s)
Paul Diaconu, Professor, Faculty of Accounting, Bucharest Academy of Economic Studies.
Dan Dumitrescu, Professor, Faculty of Accounting, Bucharest Academy of Economic Studies.
ABSTRACT
Although the current economic crisis seems far from being over, economist’s preliminary conclusion is that it has been triggered by the lack of morality of large financial institutions in developed countries that have infested the world public finance with toxic financial products. This lack of morality of the business environment seems to be a consequence of the suboptimal action of large financial companies that have put their short-term business interest above the general interests of the society they were part of, triggering the current world economic situation. The present article seeks to assess if perhaps religion, as the most effective means of imposing social morality has had an impact on the corporate governance decisions of corporations in countries with different religions. To this end, we have used the macroeconomic indicator GDP and its growth rate as a measure of corporations’ managerial policies collective action. Those policies are/can be more or less influenced by the major religious precepts in the society where they act. Using these relationships we have attempted to give an assessment of the religious phenomenon impact (as an element imposing a moral conduct in the society) on the macroeconomic outcomes in different countries of the world (as a measure of managerial decision). The article’s conclusion is that one of the efficient “law enforcement” ways is accepting religion in the social-economic space, so that the managerial decision in any corporate governance system will also have a moral component, meant to censor the immoral or antisocial decisions of managers.
KEYWORDS
corporate governance, religion, policies enforcement, morality, ethic, social-economic space
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