The Conflicting Logic of Markets and the Management of Production

Abstract

This paper examines the current role of the capital market and its effects, not only on operating companies, but also on society. We describe the growth of ‘worker capital’ in the world’s financial markets and with it, the emergence of potential conflicts of interest among shareholder groups. We then examine the relationship between corporate governance and labor management and consider the impact of labour management on productive system efficiency. We go on to explore the influence of corporate governance on stakeholder relationships – and by extension, on co-operation within productive systems – as a way of understanding how corporate governance might impact the system’s performance.

Keywords: Workers' capital, corporate governance, productive systems

JEL Classification: G23, G32, J32, J53