Employee Participation in Corporate Governance: An Ethical Analysis

Abstract

This paper outlines the ethical case put forward by Catholic Social Thought (“CST”) for giving employees a role in corporate governance and some type of ownership interest in the corporations that they work for. It explains the ethical significance of the corporation and corporate governance. It outlines why CST has called for employees to participate in the governance and ownership of the businesses that they work for. The use of ESOPs as a tool to achieve employee ownership is considered. The paper asks whether there should be mandatory co-determination. Participation can be designed well or badly. This paper considers, as an aspect of its ethical analysis, the economic aspects of the questions it considers.

Keywords: Catholic Social Thought, natural law, corporate governance, employee participation

JEL Classification: A12, A13, G3, K22, L2