The long way to stability. Aspects of Corporate Governance at the Chemische Werke Hüls (CWH)
Recently, the question how the structures of monitoring, managing and control of enterprises evolved and worked in practice has become a central research ...
Untertitel: Aspekte der Corporate Governance bei den Chemischen Werken Hüls (CWH).The long way to stability. Aspects of Corporate Governance at the Chemische Werke Hüls (CWH)
Recently, the question how the structures of monitoring, managing and control of enterprises evolved and worked in practice has become a central research perspective in business history. So far, however, this perspective has been applied only to the dual constellation typical of the German corporate governance system consisting of supervisory board and executive committee. Nevertheless, corporate governance is also the central aspect by which the mechanisms of management and control of an enterprise can be analysed, wherefore this article will focus on that perspective. It will show how the formation of the shareholders (and thus the mechanisms of control and power) in the Chemical Works Hüls (CHW) evolved, and pay special attention to the impact of a certain constitution of shareholders on business policy and on decisions of the executive committee. CWH are especially suitable for this approach due to their property structure and changing conditions of management. Since the time it was founded, its ownership structure was complex because CWH was no pure subsidiary of IG Farben, but a 25 per cent stake was let to the mining company Hibernia for reasons of energy and raw material supply. This «founding deficiency» of CWH was to considerably determine the development of the company until well into the post-war period. This article, however, will focus on the 1950’s because the case of CWH is typical for a specific variant of decartelization and re-concentration of the IG Farben, which still by no means has been sufficiently studied. All in all, the example of CWH in many respects is not that representative as to stand for the development of corporate governance structures in the German enterprises in general. Nevertheless, the concept of corporate governance is helpful for comparing business histories. It cannot explain everything, but it can help to understand many central topics, and it possesses the potential to incite new and exciting research questions for the historical analysis of companies. It ties together aspects and research objectives which so far have hardly been recognised by business historians. The concept, in addition, seems to be more pragmatic and easier to implement for business history purposes than grand theories like the new institutional economics.