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Taiwan’s Corporate Governance: Explorations from the Ethical Corporate Governance Model
Abstract
This chapter discusses the meaning and internal and external mechanisms of Taiwan’s corporate governance, explains why this kind of mechanism cannot prevent the agency problem, and demonstrates the importance of business ethics by looking at the flaws in Taiwan’s corporate governance. Other questions addressed in this study include what limitations are in the internal and external mechanisms of Taiwan’s corporate governance, what makes the agency problem seem inevitable, and whether business ethics may compensate for the shortcomings in Taiwan’s corporate governance. In this chapter, the correlation between business ethics and corporate governance is reviewed and organized in order to demonstrate how this topic was viewed by previous scholars along with a proposal of how these two topics can be joined together. The question of how the agency problem in corporate governance emerges is then examined, followed by a literature review of past studies on the influences of introducing business ethics on the agency problem as well as their relationship. The findings of the new business model are discussed in the section V.
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