Who does the worker on the board work for: the company or the union?
Given the worker-controlled nature of bodies, director duties could become irreconcilable
The inclusion of employee representatives on corporate boards has gained popularity in many parts of the world as a means of protecting and promoting employees’ interest. This can be attributed to the proportional rise in the popularity of the enlightened shareholder value approach and the pluralist approach, respectively.
These approaches can best be explained by comparing them with the traditional shareholder-orientated approach, which holds that corporates exist to serve only the interests of shareholders. The enlightened shareholder approach requires boards to prioritise shareholder interests and only consider the interests of other stakeholders if it does not diminish the board’s focus on shareholders’ interests. ..
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