I Keeping Good Company

Abstract

Abstract It matters to all of us that companies should be governed effectively. The prosperity of many associated with the company-whether directly as managers and employers, or indirectly as shareholders, suppliers, and customers-depends on it. In a broader context, how companies are run is a significant factor in the competitiveness of national economies as studies of Japanese management, for example, show. In this fiercely competitive world we cannot judge our own system of corporate governance in isolation; it must bear comparison with the best. This book aims to do just that. In turn, the author describes the system of corporate governance-both the business environment and the particular structures of company organization-in five major industrial countries-Germany, Japan, France, the USA, and the UK. The book establishes two basic principles of good corporate governance: first, that management must have the freedom to drive the enterprise forward; and secondly that it must exercise this freedom within a framework of effective accountability. Charkham shows how these principles are applied in each country-indicating where methods vary and how most countries fall short of the ideal. In addition, the author highlights the UK's strengths and weaknesses and calls for a thorough overhaul of current theory and practice.

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