Forty years ago, managerialism dominated corporate governance. In both theory and practice,
a team of senior managers ran the corporation with little or no interference from other
stakeholders. Boards of directors were little more than rubber stamps. Today, corporate
governance looks very different. In particular, several trends have coalesced to encourage
more active and effective board oversight. With the growing strength of consumer movements
and rising levels of awareness among stakeholders, corporations are realizing that stakeholders
and consumers are no longer indifferent to unethical practices like financial irregularities, tax
evasion, poor quality products and services, kick-backs, non-compliance with environmental
issues, and hazardous working conditions.