Reimagining Board Committees to Accommodate Worker Voice

Rutgers Bus L Rev, Vol 17, No 2, 38-50, Spring 2022

13 Pages Posted: 13 Jun 2022

See all articles by Douglas Chia

Douglas Chia

Rutgers Law School; Fordham University School of Law

Date Written: May 31, 2022

Abstract

Employees at US public corporations have increased their demands for their concerns to be heard at the very senior levels of management. If current trends continue, boards of directors could also be challenged to accommodate “worker voice” more formally. Rather than being caught flat-footed, boards should reimagine the process through which they receive information about employee sentiment with the goal of penetrating existing structural barriers. This essay contributes to the discussion of employees as stakeholders in the corporate governance system. It first provides an inside look, based on research and public disclosure, at how boards receive information about the concerns of its workforces within the traditional US board governance structure. It then suggests practical mechanisms for boards to hear and understand worker voice. While many experts and policymakers have repeatedly called for worker representation on boards in the form of directors selected by the employees, this essay proposes reforming the current board committee structure and creating other practical and achievable means of hearing worker sentiment to inform board oversight, decision-making, and CEO evaluation.

Keywords: boards, directors, corporate, governance, stakeholders, workers

JEL Classification: K22

Suggested Citation

Chia, Douglas, Reimagining Board Committees to Accommodate Worker Voice (May 31, 2022). Rutgers Bus L Rev, Vol 17, No 2, 38-50, Spring 2022, Available at SSRN: https://ssrn.com/abstract=4124377 or http://dx.doi.org/10.2139/ssrn.4124377

Douglas Chia (Contact Author)

Rutgers Law School ( email )

123 Washington St
Newark, NJ 07102
United States

HOME PAGE: http://https://cclg.rutgers.edu/

Fordham University School of Law ( email )

150 West 62 Street
New York, NY 10023
United States

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