Corporate governance as a mechanism for the deterrence of economic crimes in the Commonwealth Caribbean
| Published date | 06 July 2015 |
| DOI | https://doi.org/10.1108/JFC-03-2014-0015 |
| Pages | 347-353 |
| Date | 06 July 2015 |
| Author | Suzanne Cecile Ffolkes-Goldson |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial crime |
Corporate governance as a
mechanism for the deterrence of
economic crimes in the
Commonwealth Caribbean
Suzanne Cecile Ffolkes-Goldson
Faculty of Law, University of the West Indies, Kingston, Jamaica
Abstract
Purpose – The purpose of this paper is to highlight the need for good corporate governance (CG) as one
of the mechanisms to combat corporate misconduct and, by extension, to encourage economic growth
and development, with special emphasis on Jamaica, which not only has seen the greatest nancial
sector meltdown in the region, but has also seen the greatest response to the need for CG initiatives.
Design/methodology/approach – For the past 20 years, CG has been at the forefront of discussions,
legislation and moral suasion regarding corporate transparency and accountability, especially in the
wake of spectacular scandals from the Maxwell debacle in the United Kingdom (1992), to Enron in the
USA (2001), to the world economic crisis (2008). Codes have been adopted and legislation drafted to meet
the concerns regarding corporate abuse, which have not only had an impact on the corporations and
their shareholders, but also on a wider group of stakeholders, which includes, in some cases, the
countries in which they operate. Not only have these scandals rocked the developed world, but corporate
misconduct has taken an especially debilitating toll on developing economies, such as those found in the
Commonwealth Caribbean. The cost of corporate misconduct in the region has included government
bailouts, loss of jobs and loss of condence in the markets. These, in turn, have had some negative
impact on the development of many of the countries, which includes slow, stagnant or negative
economic growth.
Findings – The attention to CG in the Commonwealth Caribbean has grown tremendously in the past
10 years by the introduction of codes and legislation with a focus on transparency and accountability in
accordance with international standards. The challenge now appears to be the need to link these
initiatives with the anti-corruption project. This may be best achieved through the acknowledgment of
the need for the private sector to play a greater role in the prevention of corruption through CG
initiatives. Put another way, there may be need for an increased focus on the demand side of bribery and
corruption rather than simply on the supply side. Finally, the development of emerging economies relies
heavily on the stemming of corruption and mismanagement both in the public sector and the private
sector.
Originality/value – The original value of this paper is the development of CG principles in the
region.
Keywords Company law, Financial crimes, Corporate governance, Financial regulation
Paper type Viewpoint
Corruption cannot be blamed on unethical government ofcials alone – after all, someone has
to pay the money, provide the kickbacks and “grease the wheels”. Corruption should also be
fought against from the side of the private sector […]. In this sense, the mechanisms of
corporate governance are the measures that should be taken to try to eliminate the possibility
of businesses getting involved in corrupt activities[1].
The current issue and full text archive of this journal is available on Emerald Insight at:
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Corporate
governance
347
Journalof Financial Crime
Vol.22 No. 3, 2015
pp.347-353
©Emerald Group Publishing Limited
1359-0790
DOI 10.1108/JFC-03-2014-0015
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