We are living in an age where the questioning of major institutions occurs regularly. Large numbers of Americans support changing to a new economic system, and even many who recommend keeping capitalism think it needs a bit of an overhaul. One idea, common in Europe but less so in America, that does the latter is called codetermination and maintains capitalism and the private ownership of property while giving workers a say in how their workplaces are managed. We’ll look at what it is, how it works, and the proposal to bring it to America.
Articoli Taggati → Germany
Martin Lowi – New Business Roundtable statement of corporate principles is a step in the right direction
As of August 19, 2019, the Business Roundtable (“BRT”) made what some people see as a very important change in its fundamental statement about corporate governance and what some others see as a palliative to prevent legislation that would be far more burdensome. I think both things happened. The new statement is here.
The superiority of codetermination.
The United States should learn from the better performance of European companies which have worker representation on boards.
In comparison with the United States, the economies of northern Europe do a superior job of fulfilling Adam Smith’s hopes for capitalism as a mechanism to diffuse prosperity. Their success in displacing the US as the economic land of opportunity is a consequence of American corporations prioritising shareholder returns. In contrast, northern European companies with a codetermination system—where employees sit on company boards—prioritise strengthening domestic labour markets. Continua la lettura
Intervista ad Aleksandra Gregorič
President of the International Association for the Economics of Participation (IAFEP); Associate Professor at the Center for Corporate Governance, Department of International Economics and Management at Copenhagen Business School.
Workers’ participation realizes through various forms and levels, from employee ownership to workers’ involvement through the works councils and boards of directors. Overall, what are the main empirical findings with regards to the economic effects of the different participatory forms?
The extant scholarly research provides support to the proposition that participatory practices promoting employee involvement in the firms (i.e. representation through works councils, board of directors, etc.) and employee financial participation (e.g. direct employee ownership, profit sharing, broad-based share ownership schemes, etc.) produce significant economic benefits.