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Corporate governance: what about the workers?

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  • Prem Sikka
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    Abstract

    Purpose – To stimulate debates about the creation of corporate governance mechanisms and processes which would help to secure an equitable distribution of income and wealth for workers. Design/methodology/approach – The paper builds on a political economy of income and wealth inequalities. It argues that corporate governance mechanisms and processes are rooted in particular politics and histories. The state is a key actor. It provides a brief history of the UK corporate governance debates relating to income distribution, industrial democracy and disclosures. It provides social data about the extent of income inequalities. Findings – The paper shows that the UK lacks institutional structures and processes and mechanisms to enable workers to secure a higher share of the firm's income. Research limitations/implications – The study primarily focuses on some aspects of the corporate governance structures, practices and income/wealth inequalities in the UK. Its implications could also be relevant to market-oriented liberal states with “consensus” or “majoritarian” electoral systems. Practical implications – To encourage debates, the paper puts forward a number of suggestions for changing electoral and corporate governance practices together with disclosures that could give visibility to income and wealth inequalities. Originality/value – The paper links corporate governance debates to broader political choices.

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    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal Accounting, Auditing & Accountability Journal.

    Volume (Year): 21 (2008)
    Issue (Month): 7 (September)
    Pages: 955-977

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    Handle: RePEc:eme:aaajpp:v:21:y:2008:i:7:p:955-977

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    Related research

    Keywords: Corporate governance; Distribution of wealth; Employees; State; United Kingdom;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. John Christensen & Richard Murphy, 2004. "The Social Irresponsibility of Corporate Tax Avoidance: Taking CSR to the bottom line," Development, Palgrave Macmillan, vol. 47(3), pages 37-44, September.
    2. Burchell, Stuart & Clubb, Colin & Hopwood, Anthony G., 1985. "Accounting in its social context: Towards a history of value added in the United Kingdom," Accounting, Organizations and Society, Elsevier, vol. 10(4), pages 381-413, October.
    3. Jean-Marc Burniaux & Flavio Padrini & Nicola Brandt, 2006. "Labour Market Performance, Income Inequality and Poverty in OECD countries," OECD Economics Department Working Papers 500, OECD Publishing.
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    Cited by:
    1. David Collison & Colin Dey & Gwen Hannah & Lorna Stevenson, 2010. "Anglo-American capitalism: the role and potential role of social accounting," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 23(8), pages 956-981, October.

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