Abstract:
Corporate governance in New Zealand is draws from a blend of both hard law and soft law. It is founded in the Companies Act 1993 (and other regulatory legislation) and relevant company law cases. It includes hybrid hard soft law in terms of the listing rules of the New Zealand Exchange and Statements of Accounting Practice. Corporate governance also includes the Corporate Governance in New Zealand Principles and Guidelines. And finally business ethics. Good corporate governance structures encourage companies to create value but in the context of accountability and control systems commensurate with the risks involved. The risks need to be evaluated are not just short term, but also long term. These risks need to be evaluated in light of all relevant stakeholders’ interests, not just those of the company. This paper examines the role of corporate social responsibility and corporate sustainability in New Zealand corporate governance. It explores the tension between the traditional conservative role of the company in society as stated in the Companies Act 1993 and broader recognition of the need for corporate social responsibility and corporate sustainability in the Corporate Governance in New Zealand Principles and Guidelines and business ethics. Ultimately this aspect of New Zealand’s corporate governance is evaluated in light of international best corporate practice guidelines.
