A closer look at the corporate governance in Lebanon: A call for a bottom-up reform

Abstract

Successful governance of a country requires sustainable development, the benefit of future generations, clear assignment of roles and responsibilities, accountability of decision-making, accuracy and transparency of information, sound performance and the rule of Law. It is built upon cooperation and participation between its government, its institutions and its citizens. The slow pace of establishing these governance priorities and the inability of any government, such as the Lebanese, to formulate and implement sound legal and institutional policies, plus the lack of awareness of corporate governance, as people remain attached to their old traditional ways of managing their companies, are critical challenges to any good governance effort and to any reform. The purpose of this study is to shed light on the urge to rethink governance and institutional change in Lebanon. Based on five axes, a multimodal design helped us investigate and tackle the Lebanese multi-level CG Bundles. The study found that in a complex social context, such as Lebanon, shifting to a new standpoint requires different factors. A new and sound Lebanese economic model coupled with proper governance and stability in the country may emerge from a bottom-up reform, if well implemented. The challenge is to find if this may be another missed opportunity.