9.2 Continental European Model

The Continental European model is found in countries like Germany, France, and the Netherlands. This model is characterized by a stakeholder-oriented approach, considering the interests of various stakeholders, including employees, customers, and the community.


Key Features

  • Stakeholder Approach: Corporate governance aims to balance the interests of different stakeholders, not just shareholders.

  • Dual Board Structure: Companies often have a dual board system comprising a management board and a supervisory board. The management board handles day-to-day operations, while the supervisory board oversees and monitors the management.

  • Concentrated Ownership: Ownership tends to be more concentrated, with significant holdings by families, banks, or the government.

  • Employee Representation: Employees often have representation on the supervisory board, particularly in Germany under the co-determination system.

  • Long-Term Orientation: There is a greater emphasis on long-term sustainability and social responsibility compared to the short-term profit focus in the Anglo-American model.


Last modified: Friday, 18 October 2024, 12:42 PM