Corporate Governance Around the World: a Comparison of the Us, Uk and Other European Models

There are three internal and one external governance mechanisms used for owners to govern managers to ensure they comply with their responsibility to satisfy stakeholders and shareholder’s needs. First, ownership concentration is stated as the number of large-block shareholders and the total percentage of the shares they own (Hitt, Ireland, Hoskisson, 2017, p. 317). Second, the board of directors which are elected by the shareholders. Their primary duty is to act in the owner’s best interest and to monitor and control the businesses top-level managers (Hitt, Ireland, Hoskisson, 2017, p. 319). Third, is the

Corporate governance in itself has no single definition but common principles which it should follow. For example in 1994 the most agreed term for corporate governance was “the process of supervision and control intended to ensure that the company’s management acts in accordance with the interest of shareholders” (Parkinson, 1994)1. Corporate governance code is not a direct set of rules but a self-regulated framework which businesses choose to follow. This code has continued to change in the past 20 years in accordance with what is happening in the business world. For example the Enron scandal caused reform in corporate governance with the Higgs Report which corrected the issues which were necessary. Although it does not quickly fix problems, it gives a better framework to

Corporate governance is a commonly used phrase to describe a company’s control mechanisms to ensure management is operating according to

Farrar, J. (2008). Corporate Governance: theories, principles and practice. 2nd ed. South Melbourne, Vic: Oxford University Press

This was a very interesting article, in my opinion it brings to mind the derived phrase, which came first the chicken or the egg. Meaning, is corporate governance an attempt to control the results of unethical practices of corporations or is it meant to deter them. In reading this article, it is clear that certain corporations practiced unethical business behaviors for self-interest, but the questions this author have are: 1. Should corporate governance be regulated by the legislature as well as the organization and to what degree, 2. Is corporate governance, there to protect the shareholder or the stakeholder, 3. How effective is corporate governance on a global level. The need for a governance system is based on the assumption that the separation between the owners of a company and its management provides self-interest executives the opportunity to take actions that benefit themselves, with the cost of these actions borne by the owners (Larcker & Tayan, 2008).

Corporate governance lies at the heart of the way businesses are run. Of ten defined as the ‘way businesses are directed and controlled’, it concerns the work of the board as the body which bears ultimate responsibility for the business. Governance relates to how the board is constituted and how it performs its role. It encompasses issues of board

For France, the corporate governance is much more influenced by different stakeholders because they exert a strong power, it is a fact of life. When they disagree, employees go easily on strike, suppliers can interrupt a production and at the same time there is the growing pressure of foreign investment to attract. It all hinges on the question whether this kind of corporate governance can find a balance.

The stakeholder theory stants that large companies have a higher impact in the society, it sets that they are more than just shareholders, they should discharge their accountability not only for their stakeholders but as well as to several sectors of the society. In addition, it is a combination of agency theory and stakeholder theory law and codes of governance developed by governments all have an effect on the combined code and reports of corporate governance.

Now what is this shareholder model of Corporate Governance? The so-called ‘shareholder value’ norm is not simply or even principally a legal rule or principle. It is above all a practice which came to shape managerial behaviour in large, listed American and British firms, and increasingly those in other jurisdictions, in the last decades of the twentieth century[10]. In the words of Hansmann and Kraakman, who offer the most lucid and fundamental explanation of shareholder model, ‘The principal elements of this consensus (shareholder value model) are that ultimate control over the corporation should be in the hands of the shareholder class; that the managers of the corporation should be charged with the obligation to manage the corporation in the interests of its shareholders; that other corporate constituencies,

Corporate governance refers to ‘the ways suppliers of finance to corporations assure themselves of getting return on their investment’ (Shleifer and Vishny, 1997: 736). Corporate governance discusses the set of systems, principles and processes by which a

The model of stakeholder capitalism in Germany allows employee representatives the opportunity to sit on its company’s board of directors. This is mainly allowed due to Germany’s own model of business, where it is presumed that both the laborer or employee representative and the capital which is the shareholder representatives both maintain very high stakes. In the United States; however, the board of directors is typically only represented by the owners of the respected businesses.

The OECD Principles of Corporate Governance states that: "Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are

There are other problems faced when several people dominate the corporation, as there may be problems in the composition of the different directors. This may be run by minority group of CFO or CEO, who may undertake recruitments and appointments by personal interests, but rather not on the formal procedure, which should be undertaken. Thus, corporate governance should ensure a balance of talents, skills and competence from the numerous specialism’s related to the organizations ' situation and age. This is meant to facilitate new people in assisting the planning processes.

Corporate governance can be defined as the process, customs, laws by which the affairs of a company are managed and controlled it also

Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the