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.