9.5 Comparison of Global Models
Comparing these corporate governance models highlights the diversity in approaches and priorities across different regions. Here are some key points of comparison:
Shareholder vs. Stakeholder Focus
Anglo-American Model: Focuses primarily on maximizing shareholder value.
Continental European Model: Balances the interests of various stakeholders, including employees and the community.
Japanese Model: Emphasizes long-term relationships and the interests of multiple stakeholders.
Family-Owned Business Model: Prioritizes the interests of the family and long-term sustainability.
Board Structure
Anglo-American Model: Typically has a unitary board with both executive and non-executive directors.
Continental European Model: Often uses a dual board system with separate management and supervisory boards.
Japanese Model: Features boards with strong ties to banks and other stakeholders, often influenced by the keiretsu system.
Family-Owned Business Model: Board structures vary, but family members often hold significant influence.
Ownership Concentration
Anglo-American Model: Ownership is generally dispersed among many shareholders.
Continental European Model: Ownership is more concentrated, with significant holdings by families, banks, or the state.
Japanese Model: Characterized by cross-shareholdings within keiretsu groups.
Family-Owned Business Model: Ownership is highly concentrated within the family.
Decision-Making Process
Anglo-American Model: Decision-making can be influenced by market mechanisms such as shareholder activism and hostile takeovers.
Continental European Model: Involves significant stakeholder engagement and employee participation in governance.
Japanese Model: Emphasizes consensus-building and long-term relationships.
Family-Owned Business Model: Decision-making is often centralized within the family, allowing for quick and flexible responses.