Abolgasem Masihabadi; hojatollah Atashi Golestani; Alireza Mehrazeen; Mohammadreza Shoorvarzy
Abstract
In modern-day societies and economies, companies and corporations play a key role indevelopment of any country. This century, however, has witnessed crimes, corruptions,and inefficiency ...
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In modern-day societies and economies, companies and corporations play a key role indevelopment of any country. This century, however, has witnessed crimes, corruptions,and inefficiency of the board of directors of large corporations, imposing heavy social,economic and political burdens on the country. A close and precise evaluation has indicatedthat the problems have occurred for lack of measures by corporate governance. Incorporate governance, the two theories of "agency" and "s tewardship" with opposing hypotheseson "model of man" propose different s tructures for the boards of directors of thecorporations. This research paper pursues a critical approach to these non-native theoriesand while clarifying Islamic attitude toward "model of man", presents an Islamic-Iranianpattern for the role of the board of directors. Results of this s tudy indicate that in Islamicapproach, all board members are endowed with roles for supervision and consultation.Moreover, both material and spiritual aspects of man are causes of motivation in ours tudy. Also, in addition to boos ting self-control, there is a need for control from outsidethe corporation. Therefore, based on the Islamic-Iranian model of board of directors, thepresence of both executive and non-executive members of the board with high level ofself-control and s trong belief in responsiveness to God will be good for preventing fraudand corruption, improving the performance of corporations and progress of the country
