Corporate Governance in Germany - Essay Example

This brings us to Germany, who has a seemingly flawless method of Corporate Governance. Most corporate infrastructures receive work from all ends of the company. With smaller investment groups and smaller group of shareholders who are only out for profit for themselves, German companies receive feedback from employees, management, banks, partnered companies and even consumers. In this way, they can touch on all aspects of thought about the company. It is a rather long-term method of thinking which has become absent in the modern day with life being so hectic and all.

But it has worked to bring the German economy back into power ever since the debts incurred from World War I and II. Companies are supposed to help the good of the people before bringing in pure profit. Although the point of any business is to turn a profit, by helping out the community first, this strengthens Corporate Philanthropy 2, or the idea that helping others and taking personal hits for the company for the good of the consumer will help company image and thus bring in more sales. In the end, although the German system of Corporate Governance may seem a bit slow, it has helped to fuel their economy and reduce their unemployment throughout the years.

However, there is always a downside to everything, and although you might be asking how there could really be a downside to this way of company thinking, in the end, it all comes down to the economy. While companies are growing, the German economy as a whole has slower growth.. Although the point of any business is to turn a profit, by helping out the community first, this strengthens Corporate Philanthropy 2, or the idea that helping others and taking personal hits for the company for the good of the consumer will help company image and thus bring in more sales.

In the end, although the German system of Corporate Governance may seem a bit slow, it has helped to fuel their economy and reduce their unemployment throughout the years. However, there is always a downside to everything, and although you might be asking how there could really be a downside to this way of company thinking, but in the end, it all comes down to the economy. While companies are growing, the German economy as a whole has slower growth, and entrepreneurism has been suffering. Without easy ways for people to get out if things turn bad, it has become less and less fitting to start a business in Germany.

So in the end, if you cannot support yourself and the good of the community, your business will fail with the current structure of Corporate Governance in Germany. Now this brings us to the connection between the United Kingdom and German Corporate Governance. Where the United Kingdom has succeeded in helping to jump start entrepreneurism and new businesses, they suffer from corruption inherent in many companies. Germany, on the other hand, has low levels of corruption, but also low levels of economic growth spurts.

So, there are many ways we can approach this. Europe has been trying, as a whole continent, to support all countries and combine the best of all worlds. So, you could take the good points of the United Kingdom's Corporate Governance, boards of directors and outside investors, and the stability of the German's Corporate