Principles of corporate governance do not exactly apply on political parties. But, it is increasingly becoming evident that it wouldn't hurt if political parties in Pakistan were to take a leaf or two from the corporate governance framework. It will probably be good for their image, and, well, possibly for their survival, too.
The kind of corporate governance principles that might help parties strengthen their image pertains to their financial disclosures. It is important to ensure transparency in political funding and spending, and of course, there is the hot issue of politician's tax returns.
The world will not live happily ever after if political parties and politicians in Pakistan chose to adopt the good practices surrounding financial disclosures. But, by doing so, both the parties and politicians might just gain a little more respect, which is always a nice thing to have.
Take the case of the PML-N. It is a matter of their survival these days. And for what reason: failing to respond to the grudges of the stakeholders.
Using corporate governance framework to analyse something as fluid and grey as politics is oversimplification, especially considering that it wasn't the PML-N that took the whole political drama out on the streets.
But, things may have been different if the government had listened to and made an effort to resolve the grudges of PTI and PAT long before the showdown began on August 14. Not listening to the stakeholders is a major corporate governance failure it usually leads to a shuffle in top management.
The other major corporate governance problem visible in the PML-N camp is their failure to have what, in corporate governance terms, may be called as not having enough independent directors on board. If the boards (in this case the PML-Ns) decisions are mostly being influenced by family members, the diversity of opinions and the execution of difficult or bold moves become a victim.
You can have all the consultants from outside the party--as did the PML-N by talking to the PPP co-chairperson Asif Zardari, for instance--but at the end of the day, external consultants aren't much help if the board itself is weak or unwilling to listen.
Hopefully, other political parties and scores of family-owned businesses with weak boards will learn a lesson or two from the ongoing saga.