Political theory proposes to develop voting support from shareholders, rather than purchasing voting power from them. Hence a political influence in corporate governance can drive corporate governance within the organization. The political model emphasizes on the allocation of corporate power, profits and privileges determined by government favor. This theory has the potential to influence governance developments immensely.
Thus, good corporate governance should result in an accountable BOD who ensure that the investors’ interests are not jeopardized. The accountability and transparency element of corporate governance would enable companies to gain shareholders’ and investors’ trust assuring them that the company will be run both honestly and intelligently. This would aid long run organizational sustainability. Therefore, it is critical to re-visit corporate governance in conjunction of these theories and with a fresh angle, which would provide a holistic view incorporating subjectivity from the viewpoint of social sciences.