In a talk with the Tages-Anzeiger, Franco Taisch questions whether the sheer increase of rules on Corporate Governance actually generates benefits in the light of corporate scandals.
The Volkswagen scandal showed recently that a comprehensive control system was no use. Franco Taisch argues that, on the one hand, rules are absolutely necessary, but as principle based frameworks, differentiating along the DNA of the corporate vehicle type and allowing enterpreneurial risk taking. Otherwise the regulation creates concentration risks and innovation is not possible. On the other hand, rather corporate culture is paramount. Leadership culture, culture in setting economic targets and incentive policies are at least as crucial for a good corporate governance.