Frameworks in regulating company directors : rethinking the philosophical foundations to enhance accountability

This article will critically analyse the conventional wisdom in the “pyramid of business rules” with regard to company directors (including hard and soft laws), arguing that the emphasis on amending or refining legal instruments might not be effective. Even though there are several factors as to why these rules do not appear to yield the desired results, the key is perhaps to align them with widely accepted non-legal broad-base ethical guidelines that support the spirit of the law. The idea is that if company directors could internalise these ethical principles, there might be fewer corporate collapses and scandals driven by greed.