Stakeholder-Owned Companies

Description

Bernard Marszalek:

"In a recent paper, “Not Just For Profit: Emerging alternatives to the shareholder-centric model could help companies avoid ethical mishaps and contribute more to the world at large,”

Kelly explores three new-style corporate designs:

1. stakeholder-owned companies;

2. mission-controlled companies; and

3. public-private hybrids.

In this short review I want to focus on the first “design” – the stakeholder-owned companies. Kelly defines these companies as “those which put ownership in the hands of nonfinancial stakeholders.” She then goes on to discuss “the cooperative model of ownership” as companies “owned and controlled by the members they serve.” And in the course of her explanation of this form of “corporate” governance mentions several successful cooperative enterprises. On the whole the discussion of cooperative managerial structure and its positive benefits is fair and reasonable, and a good introduction of the topic for her corporate audience." (http://jasecon.wik.is/Analysis/Not_Just_for_Profit)