Business Ethics and Corporate Governance, Second Edition

GERMAN MODEL

In this model, also known as the two-tier board model, corporate governance is exercised through two boards, in which the upper board supervises the executive board on behalf of stakeholders. This approach to governance is typically more societal-oriented and is sometimes called the Continental European approach, being the basis of corporate governance adopted in Germany, Holland, and to an extent, France.

 

 

Fig. 14.1 The Anglo-American Model

 

Fig. 14.2 The German Model

 

In this model although the shareholders own the company, ...