Keeping good company

the long version

It matters to all of us that companies should be governed effectively. The prosperity of many of those 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 run is a significant factor in the competitiveness of national economies as studies of Japanese management, for example, show. In a fiercely competitive world we cannot judge our own system and practices in isolation; they must bear comparison with the best. This book aims to do just that. In turn the author describes the system of corporate governance - both in the business environment, and the particular structures and practices of company organization - in five major industrial societies: 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 that 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.