A METHODOLOGY FOR MEASURING RESPONSIBLE CORPORATE GOVERNANCE IN COUNTRIES OF EMERGING EUROPE

Abstract

This paper aims to create a methodology to measure responsible corporate governance with the help of an index composed of five sub-indexes, each corresponding to a certain dimension of responsible corporate governance. The research is based on a review of scholarly literature on responsible corporate governance and offers some guidelines for measuring corporate governance in developed and emerging countries. It also aims to determine a responsible corporate governance index based on the following dimensions: shareholders’ rights and equal treatment, relationships with stakeholders, responsibilities of the management team to monitor company objectives, corporate ethical behaviour and transparency, and the implementation of internal and external control systems. The methodology for determining the index of responsible corporate governance enables a ranking of emerging countries in Europe and can be used in any context.