Feature of the Month: Corporate Governance
Corporate governance is the system by which corporations are directed and controlled. The objective of corporate governance is to align the interests of management with that of the shareholders. Corporate governance systems vary in countries across the world as a result of different economic structures and legal environments. Due to the globalization of the world's economy, a competition among different international governance systems has emerged. Study has showed that this competition may lead to a convergence in the varying corporate governance systems and one system may dominate in the long run.
The main differences of the corporate governance systems lie between the developed countries and the emerging countries. In Europe and North America where most of the developed countries are located, the so called Anglo-American model has been adopted for over 20 years and has been successful in safeguarding the rights of shareholders. However, in emerging markets where matured economic laws are not yet established, the majority of corporations are beginning to shift to the Anglo-American model. For example, many Chinese corporations are distributing the shares of controlling shareholders to many other people and are achieving “shareholder's capitalism.” In India, corporations have kept their traditional governance system encompassed by a commitment to values, ethical business conduct, and the distinction between personal and corporate funds in the management of a company.
Featured Resources
The Harvard Law School Program on Corporate Governance
The Harvard Law School has created a program focusing on corporate governance that seeks to foster research and scholarship on the topic. The program is used to facilitate a discourse on corporate governance between academics, practitioners and policy-makers.
Category: Corporate Governance
International Corporate Governance Network (ICGN)
ICGN is a non profit entity that exchanges information on corporate governance issues, examines corporate governance principles and promotes corporate standards and guidelines. Documents and conferences on corporate governance can be found on this site.
Category: Corporate Governance
Featured Academy
Organizational Structure of Multinational Corporations
The Organizational Structure of MNCs module provides information on the following: the organizational structures of multinational companies (MNCs); and how MNCs try to find the right combination of organizational structure and strategy. A cast study on Proctor and Gamble’s structural reorganization is also provided.
Category: Functions
Internationalization Process of the Firm
The Internationalization Process of the Firm informs on the following issues: the internationalization process of companies that want to conduct international business; the different frameworks and theories regarding how companies handle the internationalization process; the role of company size on a company’s ability to efficiently achieve its internationalization goals; the factors that dictate the choice of a particular foreign market entry mode; and why gradual entry used to be the method of choice, but is becoming obsolete.
Category: Market Research and Entry
globalEDGE Business Review
"Running a Global Corporation"
by Tomas Hult (Volume 2, Number 1, pp. 1-3, 2008)
What does it take to run a global corporation? Are there too many environmental and industry forces to think about? What about the strategy and organizational factors? No worries, it can all be paired down to a manageable few.
"Focus On All Stakeholders Globally"
by Tomas Hult (Volume 1, Number 3, pp. 1-2, 2007)
Market orientation has been in vogue since the late 1980s but is it really the preferred way of operating internationally? Not really! Outside the U.S., firms need to focus on a number of stakeholders beyond customers and shareholders?
