FOUNDER’S SYNDROME AT THE BACKSTAGE OF AGENCY THEORY: A THREAT TO CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY
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Agency theory studies have had almost no attention to antecedents of the causes leading agent-principal problem. As there is yet no consensus over what constitutes a perfectly working corporate governance mechanism, this discursive analysis tries to draw attention to the hidden reason of agent-principal problem in order to help the constitution of healthy corporate governance with corporate social responsibility. The purpose is to put forward that Founder’s Syndrome could be one of the reasons behind agency problem and a threat to corporate governance and corporate social responsibility. This paper is the first to extend Agency Theory by associating it with a syndrome analysing the psychological and behavioural instigations of it, which fills the void in literature. A theoretical lens to enhance organizations’ ability to be the corporate social responsibility-focused by overcoming Founder’s Syndrome is provided bearing implications especially for organisational behaviour researchers.