The emerging patterns of power in corporate governance – Back to the future in improving corporate decision making

Social institutions are experiencing change in their patterns of power as they are re‐aligned to an increasingly complex world and the onset of the new information economy. Attention has been drawn particularly to the need to improve corporate governance as a means to enhance corporate accountability and improve corporate performance. This paper consequently explores the distribution of corporate power and the processes that can foster higher quality decision making and actions by boards. The paper investigates the fundamental difference between the exercise of leadership, management and political power within an organization and, particularly, the responsibility and power relationships between an organization and its board. The authors assert that if the patterns of power are well understood then some things can be said about the patterns that are likely to emerge and what structures might be more effective than others. The paper concludes by arguing that the manner and style of corporate governance could benefit from some further refinement.