EVOLUTION OF CORPORATE GOVERNANCE IN AUTOMOTIVE INDUSTRY. STUDY CASE DAIMLER AG

Abstract

The purpose of the paper is to examine the evolution of the corporate governance in automotive industry.

Corporate governance is vital as it influences growth in financial markets and plays a central role in corporate performance, capital formation, and maximization of shareholder value as well as protection of investors’ rights. Corporate governance provides a greater assurance that there is implemented an effective control system within an entity, thus ensuring that business is run in the interest of shareholders and stakeholders. The study case is applied on The Daimler Group which is one of the biggest producers of premium cars and the world's biggest manufacturer of commercial vehicles with a global reach.  I identified that Daimler, like others German companies follows the German Corporate Governance Code. It mainly presents essential statutory regulations for the management and supervision of German listed companies and contains, in the form of recommendations and suggestions, internationally and nationally acknowledged standards for good and responsible corporate governance. 

The paper starts with the principles of corporate governance. It briefly describes the main aspects related to how corporate governance is applied in Germany, which sets forth the scope of the issues the paper discusses. By reviewing the general evidence, the paper explores why corporate governance may matter for sustainable development in the automotive sector.