The aim of this Seminar Paper is to give an idea of what Corporate Governance really is and what kind of role it is by internationalization between Germany and China.
Building up a national business especially means much work, thoughts and staff. That’s the first thought people have, when they think about it. In reality it means much more to build up a business. It comes along with rules, places, marketing and much more keywords. If this is all done successfully, the task is to maintain the business on the market with all its risks. Due to many scandals, which became popular during the last years, the word corporate governance became much more important. Businesses needed some rules and facts, to protect themselves from scandals or abuse.
Table of Contents
1. Introduction
1.2 Objectives of the Seminar Paper
1.3 Course of investigation
2. Theoretical Background
2.1 Culture
2.2 Culture dimension according to Hofstede
2.3 Corporate Culture
2.4 Corporate Governance
3. Analysis of German culture
3.1 Culture in general
3.2 Corporate Culture
3.3 Corporate Governance
4. Analysis of Chinese culture
4.1 Culture in general
4.2 Corporate Culture
4.3 Corporate Governance
5. Conclusion, results and critical acclaim
Research Objectives and Themes
This seminar paper explores the necessity of corporate governance in an international business context, specifically focusing on the comparative analysis of cultural and structural frameworks in Germany and China to understand their impact on successful internationalization.
- Theoretical foundations of culture and Hofstede's cultural dimensions.
- Definitions and significance of corporate culture and corporate governance.
- Comparative analysis of German corporate environment and business culture.
- Comparative analysis of the Chinese corporate landscape and its regulatory development.
- Challenges of international business and the role of corporate governance in mitigating risks.
Excerpt from the Book
2.4 Corporate Governance
The issue of Corporate Governance is not easy to describe, because there are so many definitions and approaches. “Corporate Governance deals with the agency problem: the separation of management and finance. The fundamental question of corporate governance is how to assure financiers that they get a return on their financial investment.”14 The significance of Corporate Governance increased because of structure problems in Asia or the progressive globalization.15 Also the globalization of the competition or crisis between companies plays a large role in the increase of the meaning of Corporate Governance.16 To say it in general words: Corporate Governance is a complex network from different components and influence factors. It has to handle according to the shareholder but in relation to Asia the consideration of other members of the company such as employees is also important. German Corporate Governance has to deal with the organization of the institutional general conditions of the company.17 Michael Metten also emphasize the need to look at Corporate Governance in relation to the questioned and important markets, you are in.18
To put in in own words: Corporate Governance is the handling to make the right decisions regarding the company and all members who are involved. But here is the point where it becomes complicated: The more involved people, the more different interests and meanings. There are managers, investors, shareholders, employees and so on. Every single person of them has a different opinion and desires. To illustrate it you can use the Principal-Agent Modell, which shows that for example the shareholder as a principal has his fear or even risk how to get his money back, whereby an employee has other fears and risks. The problem here is that as a principal you have the risk, but you can not influence the Agent that much. For that reason, there was a need to get a solution such as the Corporate Governance, which gives the framework which should regulate the main problems and risks.
Summary of Chapters
1. Introduction: Presents the motivation for the seminar paper, defines the objectives, and outlines the methodological approach regarding the comparison of Germany and China.
2. Theoretical Background: Establishes the definitions of culture and corporate culture, and details Hofstede's six-dimensional model of culture.
3. Analysis of German culture: Examines the cultural dimensions of Germany and analyzes the German approach to corporate culture and the "German Corporate Government Codex".
4. Analysis of Chinese culture: Analyzes Chinese cultural dimensions, the hierarchical command structures in Chinese business, and the developmental stages of Chinese corporate governance.
5. Conclusion, results and critical acclaim: Synthesizes findings on the importance of corporate governance and offers recommendations for successful business internationalization between Germany and China.
Keywords
Corporate Governance, International Management, Germany, China, Hofstede, Culture, Corporate Culture, Business Relations, Principal-Agent Model, Internationalization, Globalization, Management, Stakeholders, Leadership, Compliance
Frequently Asked Questions
What is the core focus of this paper?
The paper examines why corporate governance is a vital instrument for business and how it is applied differently across international borders, with a specific focus on German and Chinese business environments.
What are the primary themes discussed?
The main themes include cultural impact on management, Geert Hofstede's cultural dimensions, the definition of corporate culture, and the evolution of corporate governance systems in Germany and China.
What is the ultimate goal of the research?
The objective is to provide a clear understanding of what corporate governance entails and to analyze the role it plays in minimizing risks during the process of internationalization between Germany and China.
Which scientific methodology is employed?
The author uses a literature-based analytical approach, applying Hofstede’s cultural dimension model to compare the business environments and governance structures of the two nations.
What is covered in the main section of the paper?
The main section consists of a comparative study that first defines theoretical concepts and then applies them to analyze the specific cultural and corporate governance realities of Germany and China individually.
Which keywords best characterize this work?
Key terms include Corporate Governance, Cultural Dimensions, International Management, Business Ethics, and the comparative analysis of German and Chinese business cultures.
How does the author describe the German corporate governance system?
The author describes it as a framework characterized by transparency and the "German Corporate Government Codex," which, although not mandatory, provides necessary guidelines to reduce legal uncertainty.
Why is Chinese corporate governance considered distinct in this analysis?
It is highlighted that China has historically had a weaker corporate governance system, influenced by state ownership and patriarchal leadership, but has undergone significant developmental phases to align with global standards.
- Citation du texte
- Sina-Aline Schnakenburg (Auteur), 2018, Corporate Governance. Why Corporate Governance is necessary and how it is handled from an international point of view, Munich, GRIN Verlag, https://www.grin.com/document/466060
