Academic journal article Academy of Accounting and Financial Studies Journal

The Sacred Derivation of Business Transparency and Accountability

Academic journal article Academy of Accounting and Financial Studies Journal

The Sacred Derivation of Business Transparency and Accountability

Article excerpt


The issues surrounding transparency and accountability in corporate governance processes have taken center stage in many organizations across the globe. According to Hale (2008), observers often cite transparency as a response to the accountability concerns of global actors, but how disclosure and openness actually affect the behavior of international organizations, transnational corporations, and nation-states remains theoretically and empirically under-specified. These issues are being raised as essential aspects of corporate governance and ethics in universities, corporates, local authorities, food safety authorities, extractive industries, healthcare, public finances, forest management, urban governance, hospital governance and the donor community among others Putzel (1998), Halachmi (2003), Eeckloo et al. (2004), Mejía (2013), (Kaini, 2013), Reeve (2013), Singh (2013), Stojanovska et al. (2014), Bolívar et al. (2015), Datskovsky et al. (2015), Devaney (2016), Murombo (2016), Haraldsson (2016), Panara & Varney (2017), Panara & Varney (2017), and Ramírez & Tejada (2018).

After the big corporate scandals such as Enron, Worldcom, Global Crossing, Parmalat, and various other failures of global corporations, corporate governance has become the focal point and has increased its role to business ethics (Rossouw, 2005; Crowther & Seifi, 2011 cited by Maune, 2015). As corporate governance takes center stage in the contemporary world it is also critical to look back to the origins of some of these concepts. Corporate governance has been associated with the prosperity of business firms and the economic growth of nations. However, many countries and corporates are still yet to implement and adhere to some of the guidelines which have been in existence throughout history, ever since the era of the Biblical Moses. In the contemporary world, the establishment of the Cadbury Code in the UK in the early 1990s has inspired a plethora of similar codes across the world with the same intention of improving corporate accountability. These concepts are as old as the Torah, also known as the Pentateuch, being the five instructive books of Moses. Note that the name Torah is Hebrew for "instructions", and this set of books had a clear instructive or guiding purpose for the Jewish people.

The reminder of the study will look at literature review, Torah perspective and conclusion.


Empirical Evidence

Putzel (1998) in his study of donor aid states that the European Union has emerged as one of the world's largest aid donors. Putzel (1998) further argues that the European Union's multilateral aid programme, while well-placed to set a new standard in development assistance, suffers from problems of democratic accountability confronting all transnational actors in an increasingly global community. Examination of the rules governing the European Commission's aid programme to Asian and Latin American countries reveals a pattern of perverse incentives facing private consultants and a lack of access to information that makes the programme virtually unaccountable to both European taxpayers and citizens in recipient countries (Putzel, 1998). Putzel (1998) proposes reforms that are both politically feasible and capable of making the programme significantly more transparent and accountable.

Halachmi (2003) points out that as a result of the shift to governance due attention must be given to risk management not only by government but also by other participants in the governing process. Halachmi (2003) further argues that paying such attention is consistent with the challenge of governments to meet the desired norms of account-ability, transparency and social Responsibility.

Mejia (2013) study on the rapid growth in the past decade in transparency and accountability initiatives in the extractive industries sector reflects attempts to devise institutional mechanisms to make governments accountable for the extraction, allocation and use of revenues that, if well invested, could alleviate socio-economic inequalities among citizens. …

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