Question

As corporate leaders and managers, we often adhere to an American model of corporate management. Most corporate executives never consider the tenets utilized by foreign corporations, e.g., the Chinese or Japanese approaches to corporate governance. Consider the several tenets of Chinese (or Japanese) corporate management that may differ from our insular thinking in the United States.

When you become an executive decision maker in your organization, might you consider integrating any Chinese or Japanese management principles into your (American) corporate culture? If so, which one(s)? If not, why not?

Answer 1

The several tenets of Chinese corporate governance include the following:

1. Fair treatment of all the shareholders and it is ensured that the shareholders have equal rights.

2. Assets of the listed companies belong solely to the company

3. The personnel of a particular listed company is independent of the control of its shareholders.

4. A company ensures the establishment of a standard procedure through which election of a director takes place.

When I will become an executive decision-maker of an organization, I will never integrate into the Chinese management principles because of the concentration of control and ownership in Chinese corporate governance, board system is weak, information disclosed in inefficient, the external governance structure is weak.