The Fiduciary Accountability of Directors Ensuring Sustainable Business Growth in Public Listed Companies and SMES
S. Lakshmi Gandhan1, Daisy Mui Hung Kee2
1S. Lakshmi Gandhan, School of Management, Universiti Sains Malaysia, Pulau Piinang, Malaysia.
2Daisy Mui Hung Kee, School of Management, Universiti Sains Malaysia, Pulau Piinang, Malaysia.
Manuscript received on 24 November 2019 | Revised Manuscript received on 04 December 2019 | Manuscript Published on 10 December 2019 | PP: 605-615 | Volume-8 Issue-3S2 October 2019 | Retrieval Number: C11301083S219/2019©BEIESP | DOI: 10.35940/ijrte.C1130.1083S219
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Purpose of study: Several studies are made on innovation, marketing orientation, social media and decision made in the black-box. However, countries such as England, Singapore and quite recently Malaysia legislated company law for a proper governance of the company and laws passed now make directors are more accountable of their fiduciary functions toward the company. Such law legislated is due to numerous court cases tried on breach of fiduciary and there are circumstances where corporation were liquidated. To date there is an inadequate study on the fiduciary accountability of directors or the Board of Directors (BOD) towards innovation and sustainable business growth. Despite innovation and sustainable business growth, directors are accountable for their actions such as approving expenditure on innovation, which result in low profit. However, there are studies on the “black box” in which decisions are made and. The aforesaid study lacks in one particular area, that is, fiduciary accountability of directors, which go beyond the decision-making process and its implementation. Since Malaysia Parliament passed the Companies Act 2016, which comes into effect in 2017, fiduciary duty is included in the Act. This study will look into the innovation and sustainable business growth and how the fiduciary accountability of directors moots innovation technologically, encouraging innovative knowledge through social-media among the employees, product innovation to meet customers’ needs and, of course, business sustainable growth. Methodology: In order to have more reliability of the aforesaid a comparative study is made between one of public listed companies and SMEs. Result: A final note, the present study on would trigger academic vigor in future because new concept of “fiduciary accountability” which is introduced in this literature.
Keywords: Fiduciary Accountability, Innovation, Sustainable.
Scope of the Article: Social Sciences