This document discusses the Anglo-American model of corporate governance, which features widespread shareholding, separation of ownership and management with professional managers, and a single board structure focused mainly on shareholders. It notes that in the US system, employees can access a vibrant secondary labor market, creditors rely on bonds and securities that are tradable, allowing them to exit investments, suppliers operate in highly competitive markets with business law protections, the government intervenes minimally with low tax rates and rarely directly in business, and society has open employment and minimum environmental protections.
This document discusses the Anglo-American model of corporate governance, which features widespread shareholding, separation of ownership and management with professional managers, and a single board structure focused mainly on shareholders. It notes that in the US system, employees can access a vibrant secondary labor market, creditors rely on bonds and securities that are tradable, allowing them to exit investments, suppliers operate in highly competitive markets with business law protections, the government intervenes minimally with low tax rates and rarely directly in business, and society has open employment and minimum environmental protections.
This document discusses the Anglo-American model of corporate governance, which features widespread shareholding, separation of ownership and management with professional managers, and a single board structure focused mainly on shareholders. It notes that in the US system, employees can access a vibrant secondary labor market, creditors rely on bonds and securities that are tradable, allowing them to exit investments, suppliers operate in highly competitive markets with business law protections, the government intervenes minimally with low tax rates and rarely directly in business, and society has open employment and minimum environmental protections.
•Separation of ownership and management Professional managers •Single board structure •Focus on mainly on Shareholders What about other stakeholders’ claim in USA Employees Vibrant secondary labor market Creditors Mostly dependent on bonds and securities –tradable in market –Creditors can get out of the company if they want Suppliers Highly competitive market-Powerful business law enforcement system in place
Other stakeholders’ claim in USA
Government –Minimum Intervention-low tax rates--Seldom directly into business Society –Open to employment to foreigners-Minimum environmental protection