Chapter 5 Decreasing Corporate Governance in a General Ethico-economic Model of Unity of Knowledge

This chapter tries to find that how to reduce transaction cost in corporate governance by subjecting it institutionally to ethics and values of interactive and consensual decision making with transparency gained from participation between managers and shareholders/stakeholders and the community at large. This is an epistemological problem in Islamic approach to corporate governance. This chapter brings these out in technical language and methodology. An analytical epistemological and comparative study between mainstream and Islamic conceptions in corporate governance is used to develop the idea mentioned above. The analytical model used is of an ethico-economic general equilibrium type with learning variables. This chapter conveys an original idea that has not been taken up elsewhere. It reflects the systems approach to the study of behavior in corporate setting within the epistemology of systemic unity of knowledge.