“The Implementation of OECD Corporate Governance Principles in Post-Crisis Asia”, Justin Iu and Jonathan Batten, Journal of Corporate Citizenship, Winter 2001 at p. 47

This article analyses how the OECD Principles of Corporate Governance can be implemented in post-crisis Asia where different cultural, legal and philosophical approaches to corporate governance and economic development result in different outcomes as compared with Western corporate models. In particular, the article addresses the effects of ownership concentration on shareholder rights such as voting rights , the role of relationship-based commercial activity particularly between banks and corporations and the effect of culture on disclosure, transparency and enforcement.

The article concludes that despite an international move to convergence in corporate models with the adoption of models such as the OECD Principles for Corporate Governance, cultural difference provide a significant impediment to corporate governance reform in Asia. In particular, the typical corporate ownership structure limits outside influences. Insiders and relationships dictate limited and controlled governance changes. Although new laws and regulations may be passed and lip-service may be paid to emerging global principles of corporate governance, little real change will take place until legislative changes are accompanied by cultural, ethical and philosophical approaches to doing business.