3. A Perfect Match? The German Concept of the Company’s Interest and the EU Sustainable Corporate Governance Agenda

In international discussions, the German corporate governance system is usually characterised as a prime example of a pluralistic interest or stakeholder value system, particularly with regard to the right of co-determination and the legal construct of the company's interest. From a comparative perspective, this is certainly true. In view of its historical development, the German pluralistic concept of the company's interest seems predestined for the implementation of the European Sustainable Corporate Governance Agenda to place sustainability at the heart of corporate law. There are two reasons for this. First, the pluralistic approach already allows for the consideration of sustainability issues, even though there is generally no requirement to do so. Second, the concept of the company's interest is linked to the debate on the commitment of stock corporations to serve the common good and is thus aware of the significant relationship between market and state. In this respect, the consideration of sustainability aspects by corporate boards represents the modern descendant of the traditional debate on serving the common good. Since German company law is historically aware of the integration of private and public interests into the corporate purpose and company’s interest, it is not surprising that the academic debate on sustainability transformation has become groundbreaking for German company law.