Employee Governance and the Ownership of the firm

2004 ◽  
Vol 14 (1) ◽  
pp. 1-21 ◽  
Author(s):  
John R. Boatright
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Employee Participation ◽  
Employee Ownership ◽  
Market Economies ◽  
Participation In Decision Making ◽  
The Difference ◽  
Ownership Rights ◽  
New Strategies

Abstract:Employee governance, which includes employee ownership and employee participation in decision making, is regarded by many as morally preferable to control of corporations by shareholders. However, employee governance is rare in advanced market economies due to its relative inefficiency compared with shareholder governance. Given this inefficiency, should employee governance be given up as an impractical ideal? This article contends that the debate over this question is hampered by an inadequate conception of employee governance that fails to take into account the difference between employees and shareholders. It offers a different, more adequate conception of employee governance that recognizes a sense in which employees currently have some ownership rights. The argument for this conception of employee governance is built on an expanded understanding of the ownership of a firm. The article also suggests new strategies for strengthening the role of employees in corporate governance.

scholarly journals Does Employees’ Participation in Decision Making Increase the level of Corporate Social and Environmental Sustainability? An Investigation in South Asia

2019 ◽  
Vol 11 (2) ◽  
pp. 511 ◽  
Author(s):  
Omer Farooq ◽  
Mariam Farooq ◽  
Emmanuelle Reynaud
Keyword(s):  
Decision Making ◽  
Social Identity Theory ◽  
Environmental Sustainability ◽  
Organizational Identification ◽  
Employee Participation ◽  
Legal Framework ◽  
Process Data ◽  
Participation In Decision Making ◽  
The Impact

Although previous studies have explored the role of legal framework, industry norms, innovation, and the use of clean technologies to achieve sustainability, they have paid little attention to the role of employees in increasing a firm’s sustainability performance. This article develops a model based on social identity theory and proposes that employees whose organizational identification is rooted in the sustainability of the firm can influence the sustainability strategy of the firm through the participation process. Data were obtained from 421 employees of large fast-moving consumer goods manufacturers. The findings demonstrate that employee participation has a strong positive effect on all the components of sustainability (environmental and societal). Moreover, the findings show that the impact of employee participation on the components of sustainability is moderated by organizational identification in such a way that if employees have a strong sense of identification with their organization, their participation in decision making has a greater impact on the sustainability of their organization.

Shareholder-driven Corporate Governance

2019 ◽  
Author(s):  
Anita Indira Anand
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Moral Hazard ◽  
Capital Markets ◽  
Regulated Markets ◽  
The People ◽  
Important Trend ◽  
Technical Capacity ◽  
Regulatory Challenges

This is a book about the ways in which capital markets have come to be shaped by the ubiquity of sophisticated investors. In particular, many of today’s investors have the economic might and technical capacity to play a role in the decision-making of the corporations in which they invest. This phenomenon brings with it a host of benefits, such as mechanisms to ameliorate the moral hazard that can exist when the people who bear the risk of corporate activity are different from those who make decisions. A key element of this book is an examination of the ways in which thinking about corporations and capital markets must change to reflect the prevalence of sophisticated shareholders. The book develops a concept—shareholder-driven corporate governance—to explain the role of powerful shareholders and to propose a regulatory scheme that furthers their participation in corporate decision-making. In doing so, the book considers a number of regulatory challenges that confront securities regulators. Ultimately, the book identifies an important trend in capital markets, highlights reasons for fostering this trend, and discusses the path that regulation can and should take in order to protect investors and foster well-regulated markets.

scholarly journals Cancer Patients: Their Desire for Information and Participation in Treatment Decisions

1989 ◽  
Vol 82 (5) ◽  
pp. 260-263 ◽  
Author(s):  
H J Sutherland ◽  
H A Llewellyn-Thomas ◽  
G A Lockwood ◽  
D L Tritchler ◽  
J E Till
Keyword(s):  
Decision Making ◽  
Cancer Patients ◽  
Decision Maker ◽  
Treatment Decisions ◽  
Autonomous Decision ◽  
Disclosure Of Information ◽  
Participation In Decision Making ◽  
Psychological Autonomy ◽  
The Relationship

The relationship between cancer patients’ desire for information and their preference for participation in decision making has been examined. Approximately 77% of the 52 patients reported that they had participated in decision making to the extent that they wished, while most of the remaining 23% would have preferred an opportunity to have greater input. Although many of the patients actively sought information, a majority preferred the physician to assume the role of the primary decision maker. Ethically, the disclosure of information has been assumed to be necessary for autonomous decision making. Nevertheless, the results of this study indicate that patients may actively seek information to satisfy an as yet unidentified aspect of psychological autonomy that does not necessarily include participation in decision making.

Aandelenbezit van werknemers en de Nederlandse arbeidsverhoudingen

2016 ◽  
Vol 32 (2) ◽  
Author(s):  
Eric Kaarsemaker ◽  
Erik Poutsma
Keyword(s):  
Decision Making ◽  
The Netherlands ◽  
Wealth Inequality ◽  
Tax Incentives ◽  
Employee Ownership ◽  
Business Logic ◽  
Flexible Working ◽  
Participation In Decision Making

Employee ownership in the Netherlands Employee ownership has not been very common in the Netherlands, although the numbers are increasing. It is not unlikely to become a key measure amidst developments around wealth inequality, robotization and flexible working arrangements. Also, it has business logic. Nevertheless, government, unions, and employers' organisations have not been overly enthusiastic about employee ownership. However, employee ownership connects powerfully with direct and indirect forms of participation in decision-making, which are widespread in the Netherlands. Tax incentives might help set things in motion.

Valences of the Corporate Governance in the Process of Accounting Reporting

2019 ◽  
pp. 145-166 ◽  
Author(s):  
Tatiana Dănescu ◽  
Mihaela Prozan
Keyword(s):  
Risk Factors ◽  
Decision Making ◽  
Risk Management ◽  
Corporate Governance ◽  
Global Economy ◽  
Accounting Information ◽  
Reliable Information ◽  
Professional Organizations ◽  
Prospective Risk

In the context of the issues that the global economy is facing, one of the main concerns of the regulative authorities, of the professional organizations, and of entities was and still is identifying the risk factors that affect the systems of corporative governance and the systems and processes through which the supply of reliable information in the decision-making process is insured. Another concern is identifying reliable solutions for insuring the implementation of a proactive and prospective risk management that makes a mark on the utility of the information presented and communicated to the targeted users, especially through accounting reporting. Hence, through the necessity of insuring the transparency and the utility of accounting information, in this chapter, the role of corporate governance, in improving the process of accounting reporting and as a consequence of the value of accounting information, will be synthetically presented.

scholarly journals Employee Participation in Decision Making in RMG sector of Bangladesh: Correlation with Motivation and Performance

1970 ◽  
Vol 5 (2) ◽  
pp. 122-132 ◽  
Author(s):  
Md Anowar Hossain Bhuiyan
Keyword(s):  
Decision Making ◽  
Significant Positive Correlation ◽  
Labor Union ◽  
Employee Participation ◽  
Present Situation ◽  
Organizational Goal ◽  
Participation Motivation ◽  
Increase In Productivity ◽  
Participation In Decision Making ◽  
And Performance

Participation in decision making in industry results in satisfaction of employees and an increase in productivity and profit. It empowers the employer to achieve the organizational goal. This study was conducted to assess the present situation, nature and types of workers participation and motivation system in Ready Made Garments (RMG) sector of Bangladesh. The study identifies the causes of poor participation of the employees in decision making and correlate between employee participation, motivation and performance. The study revealed that there is a significant positive correlation between decision making, motivation and performance. The study also identified five major causes of poor participation in decision making, such as, absence of willingness of the management, absence of labor union activities, lack of workforce diversity, illiteracy of the workers and political grouping among the workers.DOI: http://dx.doi.org/10.3329/jbt.v5i2.9984Journal of Technology (Dhaka) Vol. 5(2), July-December, 2010 122-132

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