From 2013, the partnership between the Modern Corporation Project and the Purpose of the Corporation Project has combined academic analysis with practitioner-oriented research that seeks to identify comprehensive and implementable solutions that enable practitioners and regulators to engage with long-term value creation.
In this partnership, the Modern Corporation Project, directed by Dr. Jeroen Veldman at Nyenrode Business University and Prof. Hugh Willmott at Cass Business School, conducts research on corporate governance theory and practice.
This website presents succinct and authoritative statements on corporate governance prepared and endorsed by leading international academics and practitioners from the fields of Company Law, Economics, Accounting, Management and Politics.
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In response to the global financial crisis and a growing concern about planetary boundaries, there has been considerable debate about the role of corporate governance. Recent statements by Larry Fink, CEO of Blackrock and the Business Roundtable show how the notion that corporations need to be governed with respect for society and the environment has moved to the forefront of both public and practitioner concerns.
However, this consensus has not yet been reflected in mainstream corporate governance theories and institutions. Since the 1970s, the dominant theory of corporate governance has put shareholder primacy and an attendant focus on short-term market value gains at the centre of managerial attention. The consequences of this focus include a discounting of long-term value creation and investment, excessive risk taking, and an exclusion of broader stakeholders’ interests and time-frames as ‘externalities’. As this focus reduces the ability to create long-term sustainable value, it leads to risks for corporations and their stakeholders, including shareholders. In addition, it diminishes the capacity of corporations to anticipate and mitigate systemic risks, such as overshooting planetary boundaries and rising social inequality.
From 2013, the partnership between the Modern Corporation Project and the Purpose of the Corporation Project has combined academic analysis on the status, architecture and purpose of the modern corporation with practitioner-oriented research focusing on comprehensive and implementable solutions that enable practitioners and regulators to engage with long-term value creation.
In September 2016 the partnership presented a report at a conference with more than 30 high level speakers and over 140 participants in which the findings were presented of international workshops conducted between 2014 and 2016 with leading academics, practitioners and regulators to identify obstacles and best practices with regard to corporate governance and long-term value creation.
The current focus of the partnership is on Company Law, Socially Responsible Investment, and Non-Financial Reporting.
In 2019, the partnership was awarded the 2019 International Impactful Collaboration Award by the Academy of Management Practice Theme and International Theme Committees.
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