Delivering Responsible Capitalism - The Growth of Employee Ownership

Topics: Management, Business, Socialism Pages: 5 (798 words) Published: October 13, 2014


Delivering Responsible Capitalism - The Growth of Employee Ownership

Delivering Responsible Capitalism - The Growth of Employee Ownership In “Delivering Responsible Capitalism - The Growth of Employee Ownership” (Forbes, 2014), author shows that the author shows a considerable growth of worker participation in companies in a model called for him of “responsible capitalism”. The author supports the main idea using data based on the Gross Domestic Product (GDP) and examples of successful experiences of this model, named for him as an “alternative business model”. In 2008, Lehman Brothers, the second largest investment bank in the United States, founded 158 years ago, led the largest ever seen panic on Wall Street in decades. The announcement of the collapse of the Lemon Brothers caused instability in the pockets of the world, and forced everyone to seek new methods of capitalism. The idea thus of a responsible capitalism emerged, and it stabilizes the economy weakened by crisis again. According to the Refoy, " the profile of employee owned businesses has increased greatly in recent years, not only in the UK, but also in the US and Europe”. The fact is that is has become a viable option for ownership of the business, causing many enterprises to follow the same model. Furthermore, the increased focus and assistance from governments, especially the UK, by facilitating the business success. The new tax incentives took effect in the United Kingdom, from October 01, 2014, helped “boost the number of employee owned businesses in the country”, noted to the author. To illustrate the story, the contributor Jonathan Refoy, cites two examples of companies where employee ownership allows greater worker participation in your company and viable solutions to the issue of wage stagnation. The first case is about a state enterprise in the UK, the third largest private company in the UK and that gave employees greater participation and a direct entrance to the undertaking in which are dedicated. The proposed John Lewis is that the company operates a responsible capitalism, where only few people make all the decisions, the suggestion is that there is a participation of all employees of the business. The second case describes the experience in the USA that worked. In this context, businesses that operate in a form of worker participation that allows its workers a majority stake in the business. The author states that, "an employee ownership model which will help tackle America’s wage stagnation and more importantly allow an increasing number of workers to be lifted out of the residual effects of a recession”. In 2012, they released a report published by the UK Government’s Department for Business, Innovation and Skills (BIS) and Cass Business School. This report pointed out that yields on employee ownership businesses during economic downturns, unlike capitalist enterprises in general that are traded in the stock market, does not hurt so much by the crisis. According to the author, the "employee owned businesses allow for a slower, more measured approach which underpins sustainable and stronger growth”. An interesting fact discussed by, Chief Executive of the Employee Ownership Association (EOA) in the UK, Iain Hasdell, is that employees owned businesses get greater productivity, are more innovative and are more resistant to economic crises. Besides being, more satisfied and have less stress with work. According to the BIS and Cass Business School, productivity joint report in employee-owned companies may have between nine and nineteen per cent higher than in businesses with other working models. In other words, is supported in part by the feeling of teamwork that many of these workers believe and fight for shared responsibility to the business success. In conclusion, Jonathan Refoy, claims that “the wider social value of employee ownership plays a significant role in the long-established or newly converted employee...

References: Refoy, J. (2014, September 25). Delivering Responsible Capitalism - The Growth of Employee Ownership. Forbes. Retrieved from
http://www.forbes.com/sites/jonathanrefoy/2014/09/25/delivering-responsible-capitalism-the-growth-of-employee-ownership/
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