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date: 20 October 2019

Abstract and Keywords

This article examines the role and extent of employee participation in the main areas of corporate governance. It becomes apparent that there are considerable differences between countries in governance institutions and practices. Many of these differences hinge on the role of employees in the governance process. The article provides an overview of the main practitioner and academic perspectives on governance, highlighting differences in the role accorded to employees. It outlines the broad national and comparative perspectives to provide some context for the subsequent discussion of more specific aspects of employee involvement. The article also identifies the main elements of corporate governance systems: the involvement of owners, the role of governing boards, information flows and transparency, the remuneration of managers, and the market for corporate control. All these are addressed with reference to the actual and potential participation of employees. In the last section, some broad conclusions are drawn.

Keywords: employee participation, corporate governance, governing boards, information flows, corporate control

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