Improving Corporate Governance Practices in the Catholic Church’s Dioceses

Research Question/Issue: This research has two objectives: (i) to discuss the level of adherence to corporate governance practices in Latin rite dioceses and (ii) to propose an ecclesiastical model of corporate governance. Research Findings/Insights: We analyzed corporate governance practices in 98 Roman Catholic apostolic church dioceses in Brazil, Spain, and Italy. Its corporate governance model is based on the Code of Canon Law from 1983—a set of rules governing its acting. However, there are no relevant impediments to using well-consolidated governance practices in for-profit organizations, which can be 'canonized'. In particular, the principles of transparency (disclosure), equity (fairness), and accountability. Theoretical/Academic Implications: The article develops a coherent, objective, and transparent statistical model, which can be applied on a worldwide scale, capable of seeking evidence of corporate governance in complex organizations, in terms of singularities—contingency (time and place) or paradox (conservative and progressive), as is the case with organizations with religious women. Practitioner/Policy Implications: Our practical contribution is the new ecclesiastical corporate governance proposal—the Diocesan Corporate Governance Index (DCGI). It adds a fourth dimension—disclosure—to the traditional ecclesiastical governance model based on the Code of Canon Law, composed of three dimensions—conformity, mechanism, and performance. Adding disclosure dimension to the diocese's corporate governance model places decisions on how and when to put such a model into practice and excludes decisions on its feasibility and implementation.