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CORPORATE GOVERNANCE MODELS - Coggle Diagram

- - - - BOARD OF DIRECTORS:
        Elected representatives of shareholders who oversee management.
        
        MANAGEMENT:
        Executives responsible for day-to-day operations and decision-making.
        
        REGULATORY BODIES:
        Ensure compliance with laws and regulations (e.g., SEC in the United States).
        
        CREDITORS AND LENDERS:
        Provide funds and have a vested interest in the financial health of the company.
        
        SUMMARY
        
        The Anglo-American Model of corporate governance emphasizes shareholder value, accountability, and transparency, with structures that strongly align the interests of management with those of shareholders. While this model has contributed to significant entrepreneurial success and innovation, it has also faced criticism for prioritizing short-term profits at the expense of broader stakeholder interests, such as employees, customers, and the community. As a result, there is ongoing dialogue about the need for a more balanced approach to corporate governance that considers various stakeholder perspectives.
- - - - BOARD of DIRECTORS (Aufsichtsrat):
        A two-tier system consisting of:
        Supervisory Board (Aufsichtsrat): Represents the interests of employees and shareholders (50:50 representation). Management Board (Vorstand): Comprises the top executives, led by the CEO.
        
        CUSTOMERS:
        Their satisfaction and interests are taken into account in business strategies.
        
        SUPPLIERS:
        Strongly involved in long-term partnerships, contributing to the stability of the supply chain.
        
        COMMUNITY AND SOCIETY:
        Emphasis on corporate social responsibility and adherence to sustainable practices.
        
        REGULATORY BODIES:
        Strong government oversight and regulation ensure adherence to social and labor laws.
        
        EMPLOYEES:
        Strong presence on the supervisory board (50% representation), with significant influence on board decisions through unions and employee representatives.
        
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- - - - BOARD OF DIRECTORS:
        Typically includes insiders (management) who are closely tied to the company's operations and strategy.
        
        MANAGEMENT:
        Executives are frequently assumed to have long-term relationships with the company and its broader ecosystem.
        
        EMPLOYEES:
        Strong emphasis is placed on employee welfare, job security, and lifelong employment, enhancing loyalty and collaboration.
        
        CUSTOMERS: Their satisfaction drives the focus on quality and service in products.
        
        SUPPLIERS: Long-term partnerships are common, contributing to stability and reliability in the supply chain.
        
        COMMUNITY:
        There is a significant focus on corporate social responsibility and community engagement.
        
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