After scandals like Enron in the past years, companies have been pressured to establish Corporate Governance systems to control their management. The design of these systems is often determined on a national level, but varies substantially from country to country.
This paper deals with the different systems of Corporate Governance in the United States and Germany and establishes a comparison. The focus is put on how the German system is different from that of the US. At the end, recent developments in the Corporate Governance landscape are discussed.
To begin with, it is important to understand what Corporate Governance means. It is defined as “The system of rules, practices and processes by which a company is directed and controlled”. These rules, practices and processes are supposed to achieve values like integrity, transparency and fairness. Thereby, Corporate Governance can support a corporation to “fulfill its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term”.
Furthermore, it strengthens a company’s reputation and has shown to increase share prices by establishing trust. Potential investors, who might not be familiar with a corporation’s processes and controlling practices in detail, can rely on statutory monitoring systems.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Corporate Governance in the United States
- Corporate Governance in Germany
- Analysis and Comparison of the Two Systems
- Recent Developments
- Conclusion and Own Opinion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research paper analyzes and compares the corporate governance systems in the United States and Germany, highlighting the differences between the two systems. The focus is on how the German system differs from the US system. Recent developments in corporate governance are also discussed.
- Corporate governance systems in the US and Germany
- Comparison of the two systems
- Role of shareholders in corporate governance
- Structure and responsibilities of corporate boards
- Recent developments in corporate governance
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter defines corporate governance and explores its importance in ensuring transparency, fairness, and integrity within companies. It highlights the role of corporate governance in enhancing a company's reputation and increasing share prices.
- Corporate Governance in the United States: This chapter examines the US corporate governance system, focusing on the annual meeting and the Board of Directors. It discusses the role of shareholders in electing board members and the limitations on their influence. The chapter also explores the structure of the Board of Directors, including the roles of inside and outside directors and the CEO.
- Corporate Governance in Germany: This chapter outlines the German corporate governance system, which differs from the US system by employing a two-tier structure with separate management and supervisory boards. It details the roles and responsibilities of each board, including the annual meeting, the Management Board, and the Supervisory Board.
Schlüsselwörter (Keywords)
Corporate Governance, United States, Germany, Annual Meeting, Board of Directors, Management Board, Supervisory Board, Shareholders, CEO, Transparency, Integrity, Fairness.
- Quote paper
- Marcus Fuchs (Author), 2013, Corporate Governance in Germany and the US, Munich, GRIN Verlag, https://www.grin.com/document/301306
