Inherit the Firm: A look at worker control
“Traditional Anglo-American notions of the firm and corporate governance have served quite well in lubricating economies and building societies’ wealth and prosperity. However, as the nature of business seems to be changing to increasingly value the contribution of human assets, there is room for labour in firm governance. This phenomenon along with globalization should encourage countries and firms to be different, to look for distinctive ways to govern themselves inline with their circumstances and environment rather than converging on a best model. The proposals outlined in this essay highlight a few of the convincing mechanisms for including suppliers of labour in the control systems of the firms for which they work.”
The past 15 years have witnessed the rise of shareholder primacy arguably to the detriment to other stakeholders in the firm. What is the theoretical basis for such a phenomenon and are there alternative theoretical frameworks which can create a more balanced structure from the persective of fairness? Here is a recent essay I wrote about corporate governance regarding whether there can be a more optimal role for employees in controlling the companies they work for. It also includes a summary of the basic theories of corporate governance in general. Enjoy!
Link (pdf): Inherit the Firm
