KERR
THE ACADEMY of Management Review (AMR), is set to feature Vindel Kerr's thesis, 'Effective Corporate Governance' in its spring 2006 issue.
In her review of the thesis for the United States academic management publication, professor of accountancy Dr. Debra Sheldon of George Washington University states, "This interesting and well-developed work reminds us of the admonition from management auditors and operational auditors: "Do the right things and do things right."
The author combines personal experience - which is broad and deep, personal interviews, normative advice, case studies, and a theoretical framework to foster a better understanding of corporate governance roles in the emerging economy of Jamaica, she states. He includes a cogent and concise mechanism for any director or CEO who wishes to improve strategic focus and refine direction.
Further, the author includes a framework for evaluating the board of directors' performance through Vindel Kerr's Board Evaluation Scorecard©. She says, "This instrument covers well the many aspects of governing a firm: communication, social responsibility, profitability, flexibility and regulatory compliance."
Within six months of its release, the book has found its way into institutions such as the Harvard Business School, Harvard Law School, Rotterdam School of Management among others, partly in response to rapidly emerging courses and degree programmes in corporate governance.
GOVERNMENTAL AND CULTURAL CHALLENGES
Professor Sheldon observes, "Governmental and cultural challenges persist in the region. The author cites evidence that politicians bent on re-election sometimes value loyalty over honesty in government. He explains that excessive compensation in bureaucratic positions and misuse of public funds result from political officials who adopt a short run rather than long view."
Kerr finds a culture of non-disclosure, particularly for state-owned enterprises, passively accepted by undemanding citizens, she says. "Unlike the furore that erupted over U.S. scandals such as Enron, Adelphia, Tyco and others, citizens react more complacently. The author provides an interesting reference to Berle-Means corporations. It stimulates us to speculate that the challenges of the Caribbean environment extend beyond that paradigm."
INDIVIDUAL INVESTORS
Dr. Sheldon further noted that in traditional Berle-Means corporations, management holds the power. Because, without institutional monitoring from, for example, a central bank, individual investors are more likely to sell their stock when disenchanted with management than demand reform. In the Caribbean context, and citing Kerr's observation that institutional investors contribute little to a watchdog role and some existing bodies perform monitoring, such as the Financial Services Commission, the Jamaican Stock Exchange, and the Private Sector Organisation of Jamaica, she captures the impatience the author expresses for a more effective culture of good governance.
In her concluding position, the George Washington University professor writes, "Those interested in fostering change in transformational economies, directors operating closely held companies, regulators searching for an understanding of the potential effects of good government on economic development, and students learning the applied case method will discover a gem in this book."
