The gyroscope of corporate governance

Lessons from political governance are instructive even for corporations

Corporate governance depends on checks and balances among four institutions — Board, Management, Stakeholders and Regulators — just as political governance depends on the four estates of Legislature, Executive, Judiciary and Media.

In both cases, governance thrives on the gyroscope principle that excessive swings along some axes can be balanced by effective institutions. The gyroscope maintains freedom of rotation in many directions while its rotor maintains the spin axis and orientation. Gyroscope design and functioning are key in engineering applications like the mounting of the Hubble space telescope.

American elections have generated disbelief and shock. However, they have also demonstrated the resilience