Public interest politics, corporate governance and company regulation in Germany and Britain

Abstract

This article introduces a systematic framework for evaluating the impact of public interest issues on companies through regulation and mandatory corporate governance requirements that change the nature of the firm. It finds that public interest issues that apply to the firm are becoming more important in both Britain and Germany, despite their disparate historical patterns of dealing with the company. European integration and national politics are both expanding the range of issues companies must deal with, even under the competitive pressures of globalisation, while national institutions and politics continue to dominate the manner in which most firms confront public interest issues.