Corporate Governance of Virtual Projects: Cultural issues influencing projects spanning national borders
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There are many policies and principles of Corporate Governance in different countries around the world. Different countries have their own approaches and corporate governance models. However, the globalization of economics and the technological development made more countries capable of competing with their products and services on the international market and also enterprises built networks and leverage worldwide. Corporate Governance is applying under different rules, regulations, laws and ethics, etc. Corporate Governance in a multinational company will meet a lot of challenges while conducting their business and executing the projects across national, cultural and political boundaries. This study aims to find out these challenges, tries to discuss and find out the difference and possibilities of different Corporate Governance models between Continental European countries (Germany, Norway) and China. Not one of these approaches is right or more right than another. In order to work with this culture difference in multinational companies, not just the employees working in a different culture need to get to know the new culture and how people in this new culture work and behave. But also, as a manager or director working in a multinational company with different culture, he or she also needs to know the culture difference, trying to understand what and how their employees going to behave, and why they are doing that, trying to respect the difference and not just trying to judge that. Both the employees and the managers need to respect the difference and try to understand each other, finding a balance or a common understanding point to create their own working culture and working relationship in the company. The understanding must permeate the whole organization, from top to bottom, from first line to support and so on. However, working across boundaries will also create more practical issues, for example, which law and regulation to follow, how to register expenditures in accounts and so on which requires both logical and cultural flexibility to find workable solutions.