JOSEPH STORY: A LESSON ON CORPORATE GOVERNANCE

Abstract

Corporate governance has been a public interest in the past decades as an effect of corporate scandals and abuses of managerial power. In the new era of governance, where governance defines as the system by which organizations are directed and controlled, and calls on boards of directors to take responsibility for the governance of their firms, the agency problem is that agents often have ideas to use capital that lies outside the intent purpose of the principals. Governance presents to address this agency problem. Governor act as an intermediary, as the principals representative, ensuring capital is directed to the right purpose. The governors also act as the voice of the agents to the principals, articulating their ideas for uses of capital and making an accounting of the use of capital back to the principals. The scripture showcase the story of Joseph and see the governance issues and how he practiced corporate governance principals of transparency, fairness, accountability and responsibility in his life over four thousand years ago. Joseph story showcase his governance in the land of Egypt. The principal-agent relationship he has with the Pharaoh, prison warden, Potiphar and Jacob, his father. The character of Joseph exemplifies a model of good corporate governance. He provide example that good corporate governance can be exercised as an agent to his principal in the lowliest place on earth, and more so an example of good corporate governance to his principal in heaven, God Almighty.

Keywords: Corporate governance, agency theory, stewardship theory, stakeholder theory, transparency, fairness, accountability, responsibility