The Anglo-American corporate model is an organizational system that much concentrates on the separation of control and ownership. The board of directors holds little shares, thus depending almost entirely on shareholders to approve critical decisions. Anglo-American model is morally justified for various reasons. First, there is increased transparency as the board of directors cannot work entirely without consulting shareholders. Every decision has to get the majority stakeholders' approval, thus avoiding judgments that could endanger the operations of the firm (Kershaw, 2018) . Secondly, the Anglo-Saxon corporate model has more concern about the company's owners compared to other models. Therefore, shareholders have more control over the running of the company, thus making appropriate decisions. The third reason why the Anglo-Saxon corporate model is morally justified is that it protects small investors in running the company's affairs. This system dramatically discourages large shareholders from using their powers to influence individual decisions that may disadvantage those with few shares.
It is easier to agree with Andy Mullineux that the Anglo-Saxon governance model exists in papers than in practice. This situation occurs due to the difference between the United States and the United Kingdom in corporate management (dela Rama & Kostyuk, 2019) . Different countries also have varying rules and regulations that govern the operations of business entities. First, the United Kingdom system broadly focuses more on corporate governance principles, while the United States concentrates more on laws and litigations. It means that the latter is ready to take decision making to the limit until the law takes its course. Secondly, the United Kingdom concentrates on protecting outside investors while the United States protects share traders. This difference means that institutional investors in the former's system play a crucial and expanded role. This scenario is not the case in the United States, where stock traders direct most of the firm's decisions.
Delegate your assignment to our experts and they will do the rest.
References
Kershaw, D. (2018). The Foundations of Anglo-American Corporate Fiduciary Law. SSRN Electronic Journal . doi: 10.2139/ssrn.3209591
dela Rama, M., & Kostyuk, A. (2019). EDITORIAL: Adapting Anglo-American corporate governance concepts in non-Anglo-American environments. Corporate Governance And Sustainability Review , 3 (1), 4-6. doi: 10.22495/cgsrv3i1_editorial
