Our Excellence - Corporate Governance & Ethics

Project

A catalyst for urban regeneration

Core Development Areas

Influencing attitudes & skills for entrepreneurship and small & medium enterprise growth

Introduction

"Corporate Governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society" (Sir Adrian Cadbury in 'Global Corporate Governance Forum', World Bank, 2000).

Corporate governance is most often viewed as both the structure and the relationships, which determine corporate direction and performance. The board of directors is typically central to corporate governance. Its relationship to the other primary participants, typically shareholders and management, is critical. Additional participants include employees, customers, suppliers, and creditors. The corporate governance framework also depends on the legal, regulatory, institutional and ethical environment of the community. Whereas the 20th century might be viewed as the age of management, the early 21st century is predicted to be more focused on governance. Both terms address control of corporations but governance has always required an examination of underlying purpose and legitimacy. - - James McRitchie, 8/1999.

Corporate governance is the relationship between corporate managers, directors and the providers of equity, people and institutions who save and invest their capital to earn a return. It ensures that the board of directors is accountable for the pursuit of corporate objectives and that the corporation itself conforms to the law and regulations. - International Chamber of Commerce.

Building competitive and sustainable cities means linking economic performance with social cohesion. It is therefore important not just to create competitive territories but also to reduce internal disparities inside the same territory. Today, many parts of cities and metropolitan areas do not share in the creation of wealth and well being for individuals and communities. In many cases they are not attractive enough for private investors, in spite of efforts made over many years by public policies targeting these areas. The stimulation of entrepreneurship through the formation and development of new commercial businesses and social enterprises can play a key role in employing underused resources in the distressed areas of our cities and metropolitan areas. Entrepreneurship and urban regeneration policy have traditionally been treated as separate fields.

IIME will focus explicitly on how policy can help regenerate inner cities and other areas of urban distress by stimulating entrepreneurship. It sets out research on recent policy developments cities in:

• Financing entrepreneurship
• Providing advice, training and mentoring to entrepreneurs
• Using special zones and area-based policies to grow new and small firms
• Supporting social enterprises

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