ABSTRACT
This chapter looks at the forms of governance that exist both around and within corporations. It proposes a simple conceptual framework or heuristic that helps to consider the ways in which, and the extent to which, these external and internal governance forms conspire to shape corporate behaviour. The chapter describes as governance from the outside, where public, private and civic actors engage in activities that seek to shape the behaviour or performance of a corporation. It focuses on governance from the inside, and discusses those factors – these will include structures, systems, policies, processes, resources, opportunities, cultures, values – that shape the behaviour of the corporation and its response to external pressures. External governance interventions can also influence internal governance processes. The mirror image of socially led governance occurs when external governance pressures are weak or are poorly aligned, but where internal governance conditions are strong and are well aligned.
