The financial crisis has shown the dominant ‘western’ economic paradigm of the last 30 years to be flawed. The implications of this are much broader than just what we have seen happening in the financial system. They extend to the whole economic system, how companies are governed and the corporate responsibility debate. This paper attempts to give a summary of how this dominant interpretation of economic theory failed to prevent, and indeed contributed to, the recent financial crisis. The second part of this discussion highlighted alternative sources of governance, which can keep up and which can make a significant contribution.
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