Abstract

Cools (2005) and Collins (2009) share a view that major corporate collapses are most often caused by hubris. This is echoed by Jennings (2006) and Abdullah and Valentine (2009) with respect to ethical failures in companies. Accepting this perspective raises questions about corporate governance and in particular how the traditional governance response to corporate collapse, additional regulation, is ineffective when dealing with hubris. By taking an approach that establishes a relationship between hubris and power within corporations a new understanding of the requirements for corporate governance emerges.