Continuity in german boards –

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Intro

In the last week there was an important decision for the continuity in German boards: The participation of employees in the German Boards is compatible with European Law. so the continuity of the German composition of boards is guaranteed.

history

Since 1965 in Germany are the half of the members of the board sent by employees. The German Konrad Erzberger saw in this very special law a discrimination: Only German employees are able to participate this law. Employees of other countries aren`t represented with this law. With this commencement the petitioner got the wrath of the German unions: They are often financed by the fee, their members got by participating the supervisory board.

In the case of TUI the law was called: Is this participation legal with European law? The German Courts sent this case to the European Court. Since Friday, the result is published: The German Law is compatible with the European law. The experts saw this in may this year in their report, and now the European court has followed this view: It is quit right, that different countries of the European Union follow different ways for stakeholders and law for companies:

 In that context, EU law does not, in the field of representation and collective defence of the interests of workers in the management or supervisory bodies of a company established under national law, a field which, to date, has not been harmonised or even coordinated at Union level, prevent a Member State from providing that the legislation it has adopted be applicable only to workers employed by establishments located in its national territory, just as it is open to another Member State to rely on a different linking factor for the purposes of the application of its own national legislation.

The Association for German Leadership has appreciated this decision:

The cooperation with employee representatives in the supervisory boards has proved successful for the majority of specialists and managers in Germany.

explained the president Ulrich Goldschmidt. The German participation is a great advantage for the location of Germany and has proven in the past 52 years. Now the European Court has obtained  legal certainty.

 

We need more couragous Leaders!

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Intro

New Technologies, the international crisis and other factors has shown: We need more leaders, less managers. But what is the difference? A short, but great Synopsis, I`ve seen:

Boss vs Leader

Courage for Leadership

We don`t have a solution for all the Problems. A new Generation of Leadership, based on Courage and Integrity, can bring all of us the solution:

1. We Need responsible Leadership

  • the ability to encourage and motivate people, employees and customers
  • to guide and coach them in good and bad times on their way to the common goal
  • to be successful jointly and have better results as a team
  • The key factors are – trust of the people in the right leadership – adjusted approaches of „right“ leadership in different situations – a responsible guideline for social responsibility.
  • other important factors are personal qualities like charisma, willpower, trustbuilding, strenghth, courage and decisiveness
  • a responsible crisis management – i.e. to be cool headed in critical situations, but with authenticity and integrity

2. We Need the leadership of tomorrow!

  • after the age of number-oriented management decision making follows the era of business culture driven leadership
  • What is competence? today: fact oriented decision maker  tomorrow: enabler and engineer of decision making processes
  • What is character? today: compliance tomorrow: personal integrity
  • What is culture? today: apply the company values tomorrow: business culture creation and formation

3. New role of the business leaders

    • Ethical behavior not only as individual, but as well as institution
    • incentivation i.e. boni longterm and related to sustainable results
    • decision making processes adjusted to ethical values (i.e. no discrimination, „Red Flags“)
    • CEO and leadership team as „role models“ demonstrate christian values
    • appreciate human capital
    • fairness for all stakeholders
    • sustainable entrepreneurship
    • show responsibility and reliability
    • open and transparent communication
    • social engagement and common good-Engagement
    • Pope-encyclica „Laudato Si“ = „our planet is our common house“

Extro

This Blogpost based on a presentation by Stephan Werhahn, board member of the German IoD.