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Deutscher Corporate Governance Kodex : What is it?

If you have ever heard about compliance you surely must the also heard about the Deutscher Corporate Governance Kodex : but, what is it?

The German Corporate Governance Code (abbreviated to DCGK) is a set of rules that primarily contains recommendations and suggestions for listed companies on good corporate governance.

Corporate governance is understood to be the legal and factual regulatory framework for the management and supervision of a company. The German Corporate Governance Code (the “Code”) contains principles, recommendations and suggestions for the Executive Board and the Supervisory Board that are intended to help ensure that the company is managed in the best interests of the company. The Code clarifies the obligation of the Executive Board and the Supervisory Board to ensure the continued existence of the company and its sustainable value creation in accordance with the principles of the social market economy, taking into account the interests of the shareholders, the workforce and other groups associated with the company (stakeholders) (corporate interest). These principles require not only legality, but also ethically founded, responsible behaviour (model of the honourable businessman).

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Deutscher Corporate Governance Kodex : What is it?

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