Friday, January 3, 2014

Blasi, Freeman & Kruse on “The Citizen's Share”

Yesterday, I attended the Annual Meeting of the Society of Socio-Economists.  Unfortunately, I was only able to participate in the second half of the program due to flight delays, but the discussions I did participate in were fantastic and I hope to publish a number of posts passing on some key points.  Today, I’d like to start by highlighting the book “The Citizen's Share: Putting Ownership Back into Democracy” by Joseph R. Blasi, Richard B. Freeman, and Douglas L. Kruse (I understand Joseph Blasi was one of the presenters at the meeting--though I was chairing a concurrent plenary session at the time).  Here is a description from the Yale University Press:

The idea of workers owning the businesses where they work is not new.  In America’s early years, Washington, Adams, Jefferson, and Madison believed that the best economic plan for the Republic was for citizens to have some ownership stake in the land, which was the main form of productive capital. This book traces the development of that share idea in American history and brings its message to today's economy, where business capital has replaced land as the source of wealth creation.   Based on a ten-year study of profit sharing and employee ownership at small and large corporations, this important and insightful work makes the case that the Founders’ original vision of sharing ownership and profits offers a viable path toward restoring the middle class. Blasi, Freeman, and Kruse show that an ownership stake in a corporation inspires and increases worker loyalty, productivity, and innovation. Their book offers history-, economics-, and evidence-based policy ideas at their best.

http://lawprofessors.typepad.com/business_law/2014/01/blasi-freeman-kruse-on-the-citizens-share.html

Business Associations, Books, Constitutional Law, Corporate Governance, Corporations, Financial Markets, Stefan J. Padfield | Permalink

Comments

Thanks for posting. Hope it has an "audio" edition for those of us who drive significantly. As a late life lawyer (licensed since ('96), my first career was spent starting, building, growing and then selling (2011) a small durable goods manufacturing company. I would posit, not having seen the work, that the type and age of employee determines the intrinsic value of profit sharing and equity ownership (ESOP type) by a workforce. We tended to find that smaller, short term compensated incentives were more valuable based on "the generation" of worker.

Posted by: Tom N | Jan 5, 2014 12:10:56 PM

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