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Corporate Governance Models - Coggle Diagram
Corporate Governance Models
Shareholder Model (Anglo-American)
Key Idea
Strong focus on profits, market value, accountability to shareholders
Company is run mainly in the interests of owners/investors
Main goal is maximising shareholder wealth and returns
Common in USA/UK
Stakeholders Involved
Shareholders (primary focus)
Board of Directors (oversight + governance)
Executive Management (runs operations)
Regulators (ensure compliance)
Auditors (financial transparency)
Stakeholder Model (Continental European)
Key Idea
Focus on long term sustainability and social responsibility
Company must balance the needs of ALL stakeholders, not only shareholders
Decisions consider employees, society, and environment
Common in Germany, Netherlands
Stakeholders Involved
Shareholders
Customers
Suppliers
Employees + Trade Unions
Communities affected by operations
Government and regulators
Environment (sustainability concerns)
South Africa follows an inclusive stakeholder approach guided by King IV
Stewardship Model
Key Idea
Trust-based governance rather than strict monitoring
Managers are seen as stewards who act in the best long term interest of the organisation
Focus on ethical leadership and organisational success
Common in organisations with strong ethical culture
Stakeholders Involved
Board of Directors (guidance + support)
Management (trusted decision makers)
Employees (organisational commitment)
Shareholders (long term value)
Society/community (corporate citizenship)
Why models differ
Different views on who the company is responsible to
Profit focused vs society focused approaches
Different cultures and legal systems