Dissemination and development of global corporate governance standards: comparing approaches to ‘comply or explain’ in Philippines and Malaysia

This article contributes to understanding how global standards are disseminated, adopted and modified in specific contexts. It does so with attention to two factors: economic logics and socio-cultural logics. These factors are explored in the context of the distribution of corporate governance standards in two developing countries in Southeast Asia, namely, the Philippines and Malaysia. The article examines part of a UK-based corporate governance code, a ‘comply or explain’ regulatory compliance approach, that has been adopted by many countries around the world. While some jurisdictions have maintained the standard unadulterated, others have opted to innovate. Both the Philippines and Malaysia have adopted comply or explain; however, while the Philippines has continued with the adopted approach, Malaysia has shifted to an apply or explain an alternative approach. The article argues that countries adopt and modify corporate governance standards to align with the norms of dominant providers of foreign investment rather than economic logics.