The origins of the corporate governance literature, with its focus on the separation
of ownership and control (Berle and Means, 1932), have resulted in a preoccupation
with shareholders. The crisis of confidence in publicly limited companies, which has
been observed in recent years due to executive fraud, has had to be addressed to reduce
the likelihood of a reduction in the shareholder base as investors seek other
mechanisms for financial return. Social enterprise is unlikely to be immune to the need
to project an image of probity in its ability to manage assets, nor is it likely to be
immune to senior managers wishing to commit fraudulent acts. Therefore, the findings
and theories that constitute the corporate governance literature are likely to become
more applicable over time to the practice and theory of social enterprise governance.