Transformations  in
Business & Economics

Fact or Superstition? Russian Business Culture and the New Corporate Governance Code
Graham H. Roberts

ABSTRACT. The Russian Corporate Governance code of April 2002 purports to embody universal values of good corporate behaviour. At the same time, however, there is a growing body of theory to suggest that it is national business culture, rather than global principles, that impacts most strongly on corporate governance systems. The aim of this paper is to examine the validity of this ‘cultural fit’ hypothesis with regard to the new Russian code. Careful analysis of the code reveals various tensions and omissions, which hint at the wider debate within Russia itself as to what mode of capitalism the country should adopt. To a certain extent the new code is a product of Russian business culture. For the most part, however, it is a rather bland, toothless document based on concepts borrowed from a fundamentally alien, predominantly Anglo-Saxon culture. The code does not address the most serious problems affecting Russian corporate life. Consequently, the Russian business environment is likely to remain fundamentally antithetical to good corporate governance.

KEYWORDS: Russia, business culture, corporate governance.