Christophe Volonté

Corporate Social Responsibility and the Board's Role in Switzerland

Corporate social responsibility (CSR) is a way of conducting business that integrates the interests of all stakeholders, not only those of shareholders. Stakeholders include customers, employees, suppliers, distributors, regulators, politicians, the state, the ecology, and the community. Thereby, firms explicitly accept their responsibility to society as a whole. In consequence, CSR extends the spectrum of traditional corporate governance which aims to reduce wrong managerial behavior that counters shareholders’ interests arising from the principal-agent problem. In this agency context, shareholders have to be protected from managers who may use investor’s money for purposes other than maximizing shareholder return. For instance, managers may waste financial resources on unprofitable projects.

Corporate Governance in the Philippines and Switzerland―A Comparison of the Institutional Environment and Practices

This chapter reviews the corporate governance environment of the Philippines and Switzerland by comparing and contrasting the experiences and practices of businesses in these two countries. The comparison between an economically developed country and a developing one provides an insight into the challenges both countries face in implementing corporate governance reforms. The theoretical scope is explored by emphasizing the institutional framework of both countries. Underlying economic measures are also provided placing the context of corporate ownership and board experience.