Why is a corporation like a stray cat? Both need owners, according to corporate governance champion Bob Monks. In this Business Ethics magazine interview, Monks says institutions are not doing enough to make corporations accountable. Fund managers have a basic conflict of interest because they don't want to lose customers. Part of the problem lies with the institution of the board where owners struggle to remove directors, nominate their own or provide advice. In the end, as Monks says, it's all about power and ensuring we have the mechanisms in place to make sure that this power is exercised for the good of the owners and broader society.

Monks questions whether we have made that much progress on corporate governance. Can't agree with that. It's on radar screens everywhere and there are signs that institutions are starting to take it seriously with the Wall Street Journal reporting that hedge funds are starting to put more heat on companies including Time Warner Inc, McDonalds Corp, Morgan Stanley, Six flags and OfficeMax. OK, there's nothing new about shareholder activism. But what's different this time is the power of capital. Five years ago, hedge funds were managing an estimated $400 million, now it's $1 trillion, about 10 percent of the US 2003 GDP, and it's growing. No-one can ignore that!!! The question is whether it can continue if the economy continues to slow. Do you think the push for corporate governance will keep gathering pace? Or are there limits?