The ‘equity governance’ effort follows an interest in improving corporate governance practices. Globalisation, increasing economic volatility, disruptive changes in technology and markets, but also a more rigid compliance, influence changing demands and opportunities for leadership. Basic believes and proven practices – encouraged by personal experiences – are linked to the required mindset and behaviour, in search of resolving apparent contradictions of conflicting interests of those who are responsible. Nevertheless, the approach is rather fact-based and objective.
In this context, ‘equity’ defines governance by its threefold meaning: capital ownership, social responsibility (as defined in the German constitution) and justice (equality before the law).
In particular, where the risk of ‘governance arbitrage’, i.e. of losing out in the own sphere of influence becomes evident, ‘equity governance’ aiming for long-term value creation should allow to take over again.