Employee roles in governance: contrasting the UK and German experience

Timothy J. Lewis, Silke Machold, David Oxtoby, P. K. Ahmed

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9 Citations (Scopus)

Abstract

The paper examines the role of employees in governance. The paper highlights from a theory basis that employee and shareholder utilities can be coincident. However, it shows that corporate practice with respect to employee involvement in governance and decision-making is diverse. The paper draws out the contrast in approaches between the Anglo-American and the German approach to employees by detailing differences in employee power, career patterns, ownership patterns and legal obligations. These lead to enactment of a different structural and cultural governance systems; which are encapsulated in the unitary board structure of the UK and the two-tier German approach. The strengths and limitations of the unitary board and two-tier boards are highlighted, and the case for convergence examined.

Original languageEnglish
Pages (from-to)16-28
Number of pages13
JournalCorporate Governance: The International Journal of Business in Society
Volume4
Issue number4
DOIs
Publication statusPublished - 1 Dec 2004
Externally publishedYes

Keywords

  • Employee participation
  • Germany
  • Governance
  • United Kingdom

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