HoughtonlakeBoard.org

TIPS & EXPERT ADVICE ON ESSAYS, PAPERS & COLLEGE APPLICATIONS

1 Revista Dinero
(2017) El poder de las juntas directivas
(The power of the boards of directors) Colombia. Available at: http://www.dinero.com/edicion-impresa/caratula/articulo/que-esta-pasando-con-las-juntas-directivas-en-colombia/242933

2 G. Jackson, (2005). Employee
representation in the board compared: A fuzzy sets analysis of corporate
governance, unionism and political institutions. Industrielle Beziehungen. Pp.
8-15.  Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.447.696&rep=rep1&type=pdf

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

 

3 G. Jackson,
(2005). “Employee representation in the board compared: A fuzzy sets analysis
of corporate governance, unionism and political institutions”. Industrielle
Beziehungen. Pp. 8-15.  Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.447.696&rep=rep1&type=pdf

 

 

4 G. Jackson,
(2005). “Employee representation in the board compared: A fuzzy sets analysis
of corporate governance, unionism and political institutions”. Industrielle
Beziehungen. Pp. 8-15.  Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.447.696&rep=rep1&type=pdf

 

 

However, if the workers have
representation on the board, the important thing now is to prove that
independents can be at the moment of intervening in the decision making
process. Since at the end of the day they will continue to be employees. A
study carried out by de G. Jackson when taking and studying twenty-two countries members of the Organisation for Economic Co-operation and Development (OECD)3,
found that fourteen of those countries could be seen as “negative
cases” of representation of employees in the board of directors within a
company. Of those fourteen countries, eight do not have legal provisions of any
kind that regulate their participation in the table or board, they are: United
Kingdom Australia, South Korea, Canada, New Zealand, E.E.U.U, Japan, and
Switzerland. Well, although in these countries, the representation of workers
on the board is not common, the strange thing is that this study shows us how
countries like Italy and Portugal where the representation of employees
historically has taken place, do not have any legislation either. On the other
hand, Jackos points out that countries such as Belgium, Greece, Ireland and
Spain also fall into the “negative group” since the representation of
workers is limited to state and public service companies, as is the case of
railway companies, public transport and universities4.
Thus, the eight remaining countries were classified as “positive
cases” of countries that allow, to varying degrees, the representation of
workers in the companies’ board of directors, being these; Austria, Germany,
Denmark, Finland, France, the Netherlands, Norway and Sweden.

Since the end of the 90s,
great efforts have been made nationally and internationally to establish
regulations for corporate governance and establish codes of “best
practices”1.
Of course these codes in most of the countries being guides and not true
normal. Such efforts reflect, to a large extent, a particular notion of
corporate governance that includes several elements: the protection of the
investor through mechanisms that guarantee the transparency of business and the
rights for minority shareholders; boards of directors constituted by
independent external directors; and, the importance of shareholder value as a
criterion for the management of decision-making processes. Although on some
occasions there is a brief mention of other interest groups, the great debate
about corporate governance has been kept aside from any explicit notion of the
various alternative modalities of employee participation in said organizational
instance. Some more traditional explanations about the representation of
workers on the board of directors focus on the comparative strengths of unions
in different countries2.
As long as unions try to obtain better wages and working conditions for their
members, they may also demand rights to participate in the decision-making
process of the company. The foregoing evidences a widely known duality, on the
one hand, there is the direct representation of the employees within the board
of directors and on the other, and there is the creation of a union of
employees which works parallel to the board of directors. Situations that are
mainly contraries since the purpose of the primary is to involve the employees
in the decision making of the company that is to say the course of the same and
the second scenario the creation of the union mainly looks for the respect of
the rights of the workers and in some way to improve their working conditions.

Post Author: admin

x

Hi!
I'm Irvin!

Would you like to get a custom essay? How about receiving a customized one?

Check it out