Democratizzare l’economia, promuovere l’autonomia dei lavoratori e l’uguale cittadinanza nel governo dell’impresa: una proposta

Lorenzo Sacconi, Francesco Denozza (francesco.denozza@unimi.it) and Alessandra Stabilini (alessandra.stabilini@unimi.it)
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Francesco Denozza: University of Milan
Alessandra Stabilini: University of Milan

No wp75, Econometica Working Papers from Econometica

Abstract: The corporate governance doctrine of shareholder value primacy was one of the main determinants of the devastating increase of unacceptable inequalities in most developed countries during the last thirty years. This suggests to consider corporate governance as a matter of social justice before than efficiency. Reforms have thus to be viewed in the perspective of pre-distribution – viz. the pre-distribution of rights, capabilities, and powers that non-financial corporate stakeholders should be granted in order to influence the process of creation and initial distribution of wealth and income. In particular, the policy proposal suggested in this paper is the introduction of what we call Works and Citizenship in company Councils. It innovates with respect to similar experiences in European countries (viz. Germany and the Neder- land) by including in the Council all the employees related to a given company, in- dependently on their labor contracts, also allowing participation of workers included in the supply chain or in the business network of a main company. It moreover introduces the participation of external stakeholders like consumers and local communities affected by the company’s environmental externalities. Councils would have legal rights/powers of consultation on all the corporate strategic decisions and a co- determination power (veto power) on all the decisions of direct interest for employ- ees. This allows them an intervention “in good time” on the formation of the corporate strategies and thus can be seen as complementary to Unions-Management negotiations at company level.

Keywords: inequalities; pre-distribution; corporate governance; social justice; co-deteremination; worker authonomy; stakeholders; shareholder value; works council; equal citizenship (search for similar items in EconPapers)
JEL-codes: D23 D63 G30 J50 J83 K20 L21 L30 M14 M20 (search for similar items in EconPapers)
Pages: 31
Date: 2019-08
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