Scientific Center of Innovative Researches, International Conference on Corporation Management-2022

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Corporate Governance vs Public Governance: direction of convergence
Iryna Radionova


Abstract


Comparative analysis of Corporate Governance and Public Governance has some scientific value. In our opinion, the idia and real practice of their convergence will contribute to the evolution of Corporate Governance theory and activity. This approach is especially important for the Ukrainian economy. After all, the activities of Ukrainian corporations in the model of oligarchic economy often begans to contradict the interests of society. Therefore, such activities may contradict to the objectives of Public Governance.

They are important for our research, first of all, scientific works about the content and forms of Corporate Governance implementation. Such works, for example, include Renata Konadu, Gabriel sam AhinfulGabriel and Samuel Owusu-Agyei (2021) [1], Federica Doni, Antonio Corvino and Silvio Bianchi Martin (2020) [2]

Secondly, for the topic of our research, works about the transition from the theory and practice of Public government to the theory and practice of Public governance are important. One of the most fundamental works on this issue, in our opinion, is the Theerapat Ungsuchaval (2017) [3]

Third, we are particularly interested in comparing Corporate Governance and Governance. This our scientific interest is satisfied, for example, the work of Ronald Gilson (2022) [4]

The scientific hypothesis of this study can be formulated as follows: “The convergence of the processes of Corporate Governance and Public Governance means the development of both. The activity of Public corporations can become a transitional element of this convergence»

In the comparative analysis of Corporate Governance and Public Governance, we use the following definitions, which reflect many years experience of many countries. These definitions emphasize those aspects that are not the subject of discussion among researchers and managers.

For example, we rely on the definition in which Corporate Governance is interpreted as the system of rules and processes by which corporate businesses are regulated and operated. It is also emphasized the creating of framework and agreeing the interests of shareholders, customers, government regulators and management. Importantly, the interests of communities and society are generally not represented in the definition of Corporate Governance.

We use the definition of Public Governance, which emphasizes the following features: a) effective interaction between Public, Private and Third sector, b) government activities aimed at enable and "steering", facilitation, coordination, and negotiation, c) provides partnerships, networks, cross-cutting agencies, d) horizontal policy work. These features make Public Governance different from Public Government. After all, the main focus of Public Government is the achievement of socio-economic development indicators, which are defined as a goal. Issues of coordination, interaction, convergance in the theory of Public Government system are not central.

An important emphasis in the definition of Public corporation is that the main purpose of their activities is to create public goods. As we know, this means products and services that have public value and are strategically important. Therefore, the central goal of the Public Corporation should be the public interest and the interests of communities. Public and community interests in the activities of the Public corporation cannot be subordinated to the interest of corporate business. Such false subordination of interests, unfortunately, occurs in the model of oligarchic economy. The practice of public administration in Ukraine, for examples, shows false subordination. It happens when  assets and revenues of Public Corporations use according to the interests of individual officials and shareholders which closed to the authorities

Conclusions:

- The appropriate  tool of the convergence beetwin Corporate Governance and Public Governance can be the consideration the interests of communities and society like importante for the Corporate Governance. Moreover, the interests of society do not need to be identified with the central authorities interests,

- The important direction to make Corporate Governance closer to Public Governance should be a consistent focus of Public corporations on the priority of public interests and the interests of communities.


Keywords


corporate governance; public governance; public corporations

References


  1. Renata Konadu, Gabriel sam Ahinful, Samuel Owusu-Agyei (2021) Corporate governance pillars and business sustainability: does stakeholder engagement matter? International Journal of Disclosure and Governance 18(1) Follow journal DOI: 10.1057/s41310-021-00115-
  2. Federica Doni, Antonio Corvino and Silvio Bianchi Martin (2020) Corporate governance model, stakeholder engagement and social issues evidence from European oil and gas industry. Social Responsibility Journal/ Volume 18 Issue 3. https://www.emerald.com/insight/content/doi/10.1108/SRJ-08-2020-0336/full/pdf
  3. www.academia.edu/34896750/Mainstreaming_Moments_in_Governance_Theories_Some_Observations?source=swp_share#:~:text=Mainstreaming%20Moments%20in,Interpretivism
  4. Ronald Gilson (2022) Corporate Governance versus Real Governance https://ecgi.global/news/corporate-governance-versus-real-governance#:~:text=Corporate%20Governance%20versus,February%2004%202022