The importance of corporate governance in public sector

Abstract

Public sector and private sector are two different entities with different responsibility. In relation to corporate governance, despite of this difference, there are corporate governance principles applicable for both entities: accountability, transparency, etc. The first guideline on public sector corporate governance is developed in the UK based on The Cadbury Report. The most important thing in the public sector corporate governance is performance aspect and conformance aspect is equally important. In this paper we analyze whether the citizen and community perceived this public corporate governance as an important thing. We conduct the research in Indonesian tax office, using taxpayer as our research object. And from the statistical analysis, we found out that public sector corporate governance is essential to improve service quality.

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