Abstract
This paper focuses on understanding the role that stakeholders, especially, employees have in a company and corporate governance implications. Currently, human capital, embodied to employees, has become very fast the most important source of corporate value. This study makes an overview of the current situation in Albania, analyzing legal provisions and relevant international literature on this issue. The trends of the result for decision-making in the Albanian companies show a low level of participation of stakeholders, particularly employees. This study is based on a comparison between American common law system, supporters of the shareholders and the German civil law system, supportive of stakeholders. Here, is apparently stated the need to embrace the second system. Recent developments of American companies and the financial crisis are reasons which brought us to this conclusion. The German practice also, shows clearly that corporate social responsibility is the key to success, if it adapts to different historical, legal and cultural contexts.
Highlights
The scope of this paper is to analyze the commercial legal framework in Albania, with focus on governing trends of commercial companies in Albanian
The comparative analysis of two representative models of corporate governance helps to shed light on the challenges encountered in the Albanian practice
Global investors are interested in learning about all kinds of corporate governance features, such as voting rights of shareholders, takeover and insider regulations, transferability of shares, protection of minority rights and protection of stakeholders
Summary
The scope of this paper is to analyze the commercial legal framework in Albania, with focus on governing trends of commercial companies in Albanian. The comparative analysis of two representative models of corporate governance helps to shed light on the challenges encountered in the Albanian practice. Such a research on ‘co-determination’ of companies has a growing importance. Baums (1997) points out that the internationalization of capital investments leads private investors to question how their interests are protected abroad. In this context, global investors are interested in learning about all kinds of corporate governance features, such as voting rights of shareholders, takeover and insider regulations, transferability of shares, protection of minority rights and protection of stakeholders. Civil law countries have better stakeholder protection than common law countries
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