Author: Ovidiu Goran
Vrije University, Amsterdam School of Business and Economics
Business Research Institute (ABRI)
Amsterdam, 1081

ABSTRACT

Over the past century, corporations have shaped the world. Boards serve as intermediaries between shareholders and management, balancing control and mediation roles between investors and self-interested management. The current corporate paradigm prioritises economic productivity and neglects the need for a more holistic approach that integrates worker well-being, social equity, and environmental sustainability. Consequently, corporations face diverse expectations from stakeholders and pressure on societal issues.

The proverb, ‘When the fish in a pond is dying, you do not treat the fish; you clean the pond’, serves as a powerful philosophy of life that challenges the very essence of corporate governance. It suggests that scholars and society should concentrate on the root cause rather than the symptoms. This essay’s central argument is that current corporate governance practices are just symptoms of a severely ill economic system that destroyed Mother Earth and is very close to jeopardising all humankind. Changing the system can bring innovation to corporate governance to address the current global crises. Consequently, this essay discusses alternative economic and governance systems such as cooperatives (e.g. Mondragon), steward-ownership (i.e. Patagonia) and the golden share model (e.g. Ecosia).