, Columnist
Five Powers Companies Should Never Cede to Workers
Stakeholder capitalism must have its limits.
Fine up to a point.
Photographer: Scott Olson/Getty Images
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Increasingly, executives and investors are coming around to the idea that companies should be run not for shareholders alone, but also for the benefit of other stakeholders, including employees. But how far can this go? Should workers, for example, be allowed to take part in any and all decisions traditionally reserved for top executives and corporate boards?
As someone who has spent a lot of time serving as a corporate director, I think not. There are some responsibilities boards and executives should never cede if they want their businesses to remain competitive.