Differences between the US and German Corporate Governance Systems Essay - 22

Differences between the US and German Corporate Governance Systems - Essay Example In contrast, German corporate governance code is the medium that determines the corporate issues in Germany. Â  Unlike US law the German corporate system emphasis on protecting the creditors, and gives freedom for accumulating indirect reserves. Another notable feature is that in the German system, accounts are calculated in monetary terms instead of book values. On the contrary, US government permits organizations to create shareholders and to exert their own management control. Moreover, in the US, Sarbanes Oxley Act emphasize on individual responsibilities of CEOs and CFOs; whereas, German corporate governance gives importance to collective responsibility. Â  Regardless of the dissimilar business environment, Law Daimler and Chrysler have rather collectively dealt with the common issues by designing policies to operate their business efficiently. They strategically evaluate the business concerns and formulate further plans to meet challenges that are associated with the variance in business cultures. Their formula emphasizes on the submission of DC balance sheet that the whole company has to be committed to. Individuals like the CEO, CFO, and Chairman also come under the ambit of certain obligations. Also, the company has applied cascade signing system in its business operations. Daimler and Chrysler have given more weight to collective and individual responsibility in management concerns. Â  Law Daimler and Chrysler could have initiated some researchers on the major corporate issues to identify the essential areas of strategic change. It should focus on other competitors for learning how they handle the issues related to organizational convergence. In addition, the company might have explored new potential regions for business expansion to overcome the legal barriers in their domestic market.