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Corporate Governance Models - Coggle Diagram
Corporate Governance Models
Anglo-US Model
Market focus:
Stock market.
Stakeholders include:
Shareholders elect the board of directors (BOD) and together are the controlling parties who are in charge of decision-making as well as optimising shareholder value. Shareholders hold the BOD accountable.
Management handle daily business and ensure financial objectives are achieved.
Regulatory authorities enforce compliance with legal and regulatory obligations and explicitly support shareholders.
Continental/German Model
Market focus:
Banking and credit markets.
Stakeholders include:
Executive board controls the corporate management and includes the labour relations officer.
Supervisory council is appointed by the employees and shareholders and controls the executive board.
Government and society play a large role in terms of influencing businesses relative to CSR/CSI and bettering society.
Banks influence firm's financially and impact decision-making.
Asian/Japanese Model
Market focus:
Banking and credit markets.
Stakeholders include: (2 groups of dominant legal relationships)
Administrators, shareholders, managers.
Customers, shareholders, creditors, suppliers, employee unions.
Regulators play a large role as officials are generally stakeholders.
Banks enforce and control relationships while emphasis is placed on loyalty, making them key individuals in this model.
The bank provides skilled individuals who are appointed by shareholders as the board of directors (BOD) of a firm which is owned by both the bank and shareholders.