Monthly Archives: February 2016

Corporate Governance, and the Stakeholder vs. Shareholder Model

Corp Gov

Corporate governance is not a term that comes up in everyday conversation, but it is a very informative concept to know. Corporate governance refers to how a corporation is governed. This entails who owns and controls the company, and how it is managed. There are two main models of corporate governance, the shareholder model (which prioritizes the return on investment for a large number of investors) and the stakeholder model (where fewer people own, but more people have a stake in, the company; including customers, competitors, and the external community). These models of corporate governance define capital (finances), labour (employees), and management (employers) in very different ways. These relationships will be explained in the national contexts of the US and Germany below.

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