peter verhezen

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Peter is a Visiting Professor for Global Strategy, Governance, Sustainability and Business in the emerging markets at the University of Antwerp and the Antwerp Management School. In addition, he is also an Adjunct Professor for Strategy, Ethics, and Governance and Risk Management in Emerging Markets at the Melbourne Business School (MBS/ University of Melbourne). As an advisor to boards and top management, Peter is a Senior Advisor for governance at the International Finance Corporation – World Bank group in Asia Pacific and he is the Principal of the governance and risk consultancy Verhezen

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Papers by peter verhezen

Gifts and Bribes. An Essay on the Limits of Reciprocity

397 hal.; 26 cm

Gifts and Bribes. An Essay on the Limits of Reciprocity

397 hal.; 26 cm

Focused organizations that are built to last : business administration : capita selecta

“Do as the Romans Do in Rome”?

Springer eBooks, 2013

When doing business in Asia, one cannot escape the feeling that ethical norms and values are not ... more When doing business in Asia, one cannot escape the feeling that ethical norms and values are not “valued” that highly nor exist there obvious incentives to behave ethically in the fierce competitive Asian emerging markets. One could even question the ethical sensitivity to ethical values as they are often violated. Moreover, corruption is prevalent in the Asian emerging markets as surveys consistently reveal. However, since the debilitating Asian crisis of 1997–2001, governance structures have been dramatically improved throughout Asia. Despite the considerable improvements, Asian companies are still lacking behind in terms of transparency, accountability to all its shareholders and being responsible to affected stakeholders. This is mainly because insiders in family or state owned enterprises still rule most of the biggest Asian companies. Moreover, when ethical business principles are propagated in Asia, these theoretical ethical concepts originate more often than not from Western philosophy. Is it surprising that a Chinese culture might prefer to adhere to Confucian, Mencius or Lao Tse’s principles, or that Indonesians or Indians are likely more familiar with the ancient epics of Ramayana and Mahabharata, narratives of good and evil? In business, however, allegedly attempting to apply ethical principles – be it teleological, deontological or consequentialist in nature – have largely remained a mere public relations exercise to convince others about their presumed good ethical intentions. The reality on the ground is often quite different: powerful business elite in ‘tacit’ or even explicit collaboration with the politicians and public officials rule vast business empires. This political elite uses the “rule by law” instead of making sure their business “associates” abide by the rule of law. Relationship building is a survival mechanism in those emerging Asian markets where one faces enormous institutional voids. Unfortunately, those relationships can easily turn into nepotistic and corrupt networks. Most business executives will therefore adapt the adage to “do as the Romans do in Rome” to survive in such uncertain and fierce environments where one cannot fully rely on contractual enforcement or arm’s length governance structures.

Guanxi: networks or nepotism?: The dark side of business networks

Garant eBooks, 2008

ABSTRACT This paper examines the ethical dimension of using gifts to establish social networks, a... more ABSTRACT This paper examines the ethical dimension of using gifts to establish social networks, applying the predominantly Chinese concept of &#39;guanxi&#39; - a practice which may lead to personal and/or corporate gain. Guanxi refers to a network of personal and social relations that is characterized by specific ethical and instrumental dimensions, embedded in social and moral norms and founded on a traditional Confucian philosophy. Social contextuality seems to be more relevant for its ethical acceptability than a precise moral defined threshold. To what extent can possible gain or profit from guanxi be considered as &#39;ethical&#39;? The answer lies in understanding the fine line between socially appropriate and a-social networks. Social networks such as guanxi transgress in a form of nepotism when emotional and moral obligations in interpersonal relations are ignored in favour of pure instrumental [calculating] exploitation of networks for personal gain. When the cultural ritual of guanxi, based on strong Confucian moral values, degenerates into a rent-seeking guanxi, an appropriate network loses its ethical edge as it turns into inappropriate behaviour, and allows itself to be corrupted. Networks then become &#39;nepotistic&#39; or corrupt. Yes Yes

La paradoja de la buena reputación

Cultura económica, 2008

ABSTRACT This article is an attempt to reinterpret �The Ethics of the Management Paradox� as it i... more ABSTRACT This article is an attempt to reinterpret �The Ethics of the Management Paradox� as it is formulated by the Leuven philosopher-economist Luk Bouckaert (2006) who analyses how to make business ethics operational and how to make business genuinely ethical. The question becomes to what extent ethical behavior constituting a good reputation can be �used� by corporate managers to enhance corporate value. In line with Bouckaert�s paradox, Peter Verhezen argues that instrumentalizing reputation would possibly undermine its objectives to achieve useful benefits Este artículo se propone reinterpretar �La Paradoja de la Ética de la Administración� como la formula el filósofo-economista de Lovaina Luk Bouckaert (2006), quien analiza cómo hacer que la ética de negocios sea operativa y cómo hacer que los negocios sean genuinamente éticos. La pregunta es, hasta qué punto el comportamiento ético que constituye una buena reputación puede ser �utilizado� por los gerentes corporativos para aumentar el valor de la corporación. En consonancia con la paradoja de Bouckaert, Peter Verhezen sostiene que instrumentalizar la reputación posiblemente atente contra sus objetivos de alcanzar beneficios útiles.

What to Expect From Artificial Intelligence in Business

Advances in business strategy and competitive advantage book series, 2020

We are increasingly living in a digital world, where companies attempt to adapt to a new context ... more We are increasingly living in a digital world, where companies attempt to adapt to a new context of Industry 4.0. The authors believe that artificial intelligence and the use of logarithms will alter the game of competition. Digitization is moving our economy away from "financial capitalism" to "data capitalism," and companies and their boards need to adopt the way they operate and steer the organization to new ecosystems where personalized service becomes part of the new digital strategy. Basically, it is not a battle of AI versus humans, but rather finding a way to enhance the collaboration of AI and humans in organizations. Despite the enormous potential benefits of AI, boards should not ignore the darker side of AI, namely the potential biasedness and sometimes unfairness of algorithms and privacy concerns and the ubiquitous cyberthreats. This is why proper data governance at the board level is needed. The authors suggest that this becomes a critical success factor to be addressed at boards, either as part of the risk management or strategic committee or as a separated digitization committee.

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Corporate Governance Practices Affecting Performance: Some Indonesian Cases Applicable Across ASEAN Borders

Does corporate governance matter when doing business in Indonesia? You bet it does, but not neces... more

Fear and regret, or trust? From 'transparency as a way to control' to 'radical transparency to empower

Most organizations are engaged in an ongoing quest for more transparency and accountability in an... more Most organizations are engaged in an ongoing quest for more transparency and accountability in an effort to comply with the more stringent regulations that were put in place after the financial crisis and corporate ethical debacles. However, the author suggest being more mindful of why a board imposes more transparency, and author recommend a more radical form of transparency. This kind of transparency indicates a very different type of board governance, where top management and the firm’s employees are trusted to always do the right thing, and where there is a ‘no secrecy’ context, based on trust instead of fear. If transactional leadership is about mobilizing people to achieve a purpose through control, then servant stewardship or compassionate transformative leadership means empowering people to achieve a meaningful enlightened purpose.

Boards Acting Wisely: Be Different, Beyond Compliance

Governance is more than compliance; it refects a culture or attitude that embraces consistency, r... more Governance is more than compliance; it refects a culture or attitude that embraces consistency, responsibility, accountability, fairness, transparency and respect for shareholders’ rights and stakeholders’ concerns. Governance and reputation management are correlated. The more a board is able to fulfill its fiduciary duties of loyalties and care, the less reputational risk and possibly the higher the reputation of the organization. Good governance provides the check and balances to control risks and to prepare organizations to embrace opportunities. A board promotes and communicates the central idea of why the company exists and how the company will collaborate and compete ethically and win. Boards have evolved from rubber-stamping to monitoring and control, though some excellent boards are now taking a more active leading and coaching role.

Gifts and Alliances in Java

Ethical Perspectives, 2002

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The Power of Human Corporate Narratives Across Borders: Narratives Constituting Corporate Reputation and Success

It takes years for an organization to build a good reputation. Yet a crisis that diminishes the t... more It takes years for an organization to build a good reputation. Yet a crisis that diminishes the trust that has been established between that organization and its various stakeholders, can not only quickly cripple or destroy all that reputational hard work, but also deliver significant and persistent financial damage in a matter of seconds.

The Vulnerability of Corporate Reputation: Leadership for Sustainable Long-Term Value

Palgrave Macmillan UK eBooks, 2015

Introductory Remarks: The Traps of Maximizing Shareholder Value

Bad corporate behavior potentially blackens the corporate reputation of the firm, undermining the... more Bad corporate behavior potentially blackens the corporate reputation of the firm, undermining the relationships and trust on which an organization is established. Trust is the glue that holds any group or organization together. Pursuing opportunistic profit maximization at any cost seems to be counterproductive if considered over a longer time period. A more nuanced framework may be more compelling and sensible, in which organizations embrace the goals of serving their customers and respecting their employees and society at large.

Managerial Wisdom in Corporate Governance

Palgrave Macmillan eBooks, Aug 15, 2013

Giving Voice in a Culture of Silence. From a Culture of Compliance to a Culture

ABSTRACT This article argues that attempting to overcome moral silence in organizations will requ... more ABSTRACT This article argues that attempting to overcome moral silence in organizations will require management to move beyond a compliance-oriented organizational culture toward a culture based on integrity. Such cultural change is part of good corporate governance that aims to steer an organization to enhance creativity and moral excellence, and thus organizational value. Governance mechanisms can be either formal or informal. Formal codes and other internal formal regulations that emphasize compliance are necessary, although informal mechanisms that are based on relationship-building are more likely to achieve moral excellence. Such a shift can be viewed as a transformative strategy for overcoming the destructive side effects and business risks of the tendency within corporate cultures to remain mute when faced with issues that violate personal or corporate values. Genuine dialogues and appropriate ethical decision-making training can deepen the understanding and create a mindful awareness (of ethical values) and induce trust that embrace both complying with rules and regulations, as well as inciting creative “ethical innovation” with respect to human interaction in multinational companies. Key wordsmoral muteness or a culture of silence-moral mindfulness-integrity beyond compliance-organizational culture-corporate formal and informal governance mechanisms

Revista Cultura Económica, 2008, Año XXVI nº 71 (número completo)

presenta en este artículo las características de lo que él denomina una economía personalista. Si... more presenta en este artículo las características de lo que él denomina una economía personalista. Si bien existe una serie de autores que han adherido al personalismo, también se dan intentos de numerosos economistas quienes, aún no adoptando explícitamente esta denominación, podrían ser adscriptos a esta corriente. La misma parte, fundamentalmente, de una visión del hombre como persona sobre la base de cuatro supuestos fundamentales: el reconocimiento de necesidades básicas, el compromiso ético, la confianza mutua como base del mercado y la democracia económica como piedra de toque para la ética en los negocios. Palabras clave: preferencias subjetivas-necesidades básicas-compromiso ético-confianza mutua-democracia económica Luk Bouckaert, a Professor at the Catholic University of Louvain, presents in this article the characteristics of what he calls a personalist economy. While there are a number of authors who have supported personalism, there are also attempts of many economists who not explicitly adopting this name, could be related to this school of thought. This philosophical tradition is essentially based on a vision of the human being as a person, depending on four key assumptions: the recognition of basic needs, the ethical commitment, mutual trust as the basis for the market economy and economic democracy as the touchstone of business ethics.

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Do good, effectively : the (ir)relevance of CSR in organizations

The Boardroom

De Gruyter eBooks, Jul 13, 2022

Indonesian State-Owned Enterprises: Boards that Govern and Lead

Springer eBooks, 2016

What can and should we really expect from boards, be it in state-owned enterprises or privately h... more What can and should we really expect from boards, be it in state-owned enterprises or privately held companies in ASEAN and more specifically in Indonesia? In its most generic expectations and definition, it is widely agreed among practitioners and scholars that boards in ASEAN and elsewhere are legally assumed to govern and lead organizations towards opportunities that create value and to reduce threatening risks, all on behalf of shareholders and stakeholders.