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Models of corporate governance - Coggle Diagram
Models of corporate governance
The Anglo-American Model
-most prevalant in English speaking nations, maximises shareholder value
Stakeholders
Customers- they determine if the company is meeting their needs through loyalty
Employees-they run the daily company operations
Shareholders-Owners of the company or investors, primary decision makers
Communities- members of where the company is operating, have powers to stop operations if there is no compliance to their needs
Management-they oversee day-to- day company operations
Board of directors- they come up with strategic decisions to improve the company
The Continental Model
-strikes a compromise between the interests of several stakeholders, not just owners.
Stakeholders
Executives- they manage the business for growth
Shareholders- they are the investors
Union representatives-they represent employees needs such as wages
Banks- they provide financing
Customers- they influence the company's decisions through their purchase preference
Suppliers- own contracts for provision of resources with the company
The Japanese Model
-Deals with linked companies (keiretsu) with mutual shares
Stakeholders
Customers- they are valued to earn their long term loyalty
Management- ensure long term growth and profits
Banks- provide financing, influence major decisions
Government- ensure compliance with state laws and labour laws
Employees- they run the company daily operations
Shareholders- company owners and investors
Employees unions- represent employees needs or demands