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Corporate Governance Models - Coggle Diagram
Corporate Governance Models
Anglo-American model
Stakeholders involved
Shareholders
These are the primary stakeholders in this model, they have shares and have financial interests in the business
Board of directors
These are the people that represent the interests of the shareholders and are elected by the shareholders to operate in their best interest
Management
This the top management and are accountable to the board and shareholders for the company's performance
Employees
They are classified as stakeholders but in this model shareholders are priorities over the shareholders
Creditors and lenders
They are very important to the business and in the model as they provide financing to the company and have a interest in the companies financial health
Regulators and government
Plays a vital role in governance and and compliance with laws and regulations
Communities
Companies using this model may consider the interests of the community in which they operate in by doing things that benefit the community
German model
Stakeholders involved
Shareholders
While they do hold ownership stakes in the they are not the main priority as in the Anglo-american and are not the sole focus of corporate governance
The supervisory board
This is a key feature for the German corporate governance system and is responsible for appointing and overseeing the management board
Management board
They are accountable to the supervisory role and are responsible for the day-today operations and must have the best interests of the company in mind
Employees
German corporate governance emphasizes the rights of employees as stakeholders in the company and depending on the side may have representation on the supervisory board
Trade unions
Labour unions play a significant role in the german model. They help with employer and employee negotiations and may partake in decision making through employee representation on the supervisory board
Creditors and lenders
While they are classified as a stakeholder, the german model does not prioritize them
Government and regulators
They do no play a major role but are still responsible for frameworks that govern the companies behavior and ensure compliance with laws related to corporate governance
Suppliers and customers
These are considered as important stakeholders in the German model, although their influence may be indirect but meeting customer needs and maintaining satisfaction is crucial for business success
Asian Model
Shareholders
With them being the owners they still hold significant influence but are not emphasized the same way as in western models
Management
These are company executives and in the asian model management often emphasizes consesus-building and long-term relationships with stakeholders
Board of directors
Oversees management and represent and interests of shareholders but has no significant priority in the asian model
Employees
These are considered important stakeholders in the asian model and companies often prioritize maintaining stable employement and fostering loyalty among employees. Employees are valued
Banks and financial institutions
Asian model emphasize companies maintaining close relationships with banks and financial institution. These relationships often extend to mutual support and cooperation in business activities
Government and regulators
Play an important role in shaping corporate governance in a company and compared to western models allow for governments to have more involvement
Stakeholder involved
Suppliers and customers
These are essential stakeholders in the Asian model and companies build long term relationship with reliable suppliers and meeting the needs of customers
Local communities
Considering the interests of local communities in what a company operates in with the Asian model is important and they believe they need to give back and support local community's
Business partners and affiliated companies
These relationships often involve mutual support and have a role in the asian model in helping business work together