Environmental Contingencies and Sustainable Modes of Corporate Governance

The corporate governance issue has received significant attention recently at both the academic and the regulatory levels. However, there is still no generally accepted definition of the term, consensus about what it means or common system of ensuring good practice. For the emerging economies of central and eastern Europe this lack of consensus creates yet another uncertainty on their road to a market economy. In this paper alternative models of corporate governance that have emerged in market-oriented economies are described and the critical determinants or contingencies of these different forms of governance identified. To illustrate the relationship between environmental and institutional contingencies and sustainable modes of governance for emerging economies the case of Slovenija is described, where aspects of three different western governance models have been adopted without due consideration of the exogenous factors required for their effective application