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Essay from the year 2003 in the subject Business economics - Business Management, Corporate Governance, grade: A bzw. 1, ESCP Europe (European Business Environment), language: English, abstract: This essay describes the problematic of corporate governance systems, which, if they
are weak, distort the efficient allocation of resources, undermine opportunities on a level
playing field and, ultimately, hinder investment and economic development. Recent high
profile scandals, financial crises and institutional failures in Russia, Asia and the United
States have brought corporate governance issues to the fore in modern western, as well
as developing countries, transitional economies, and emerging markets.
Firstly, I will give a definition of corporate governance and introduce the OECD
Principles, which are the foundation of all corporate governance systems. Secondly, I
discuss the driving forces and the importance of corporate governance. I will then
concentrate on national differences and recent developments, where I am particularly
looking at the UK and Germany. A special chapter about the Anglo-American influence
follows and leads to the last chapter, which covers the current situation and possible
future effects of applied corporate governance systems in developing and transitional
countries.
The purpose of this paper is not to go deep into legal details of corporate governance,
but reveal its importance for society (stakeholder), economy (corporations and capital
markets) and future development of emerging market economies.