Employee participation in UK corporate governance

This chapter provides an overview of the two competing models on the role of labour in corporate governance, namely the Anglo-American and European models, with particular emphasis on the UK and Germany as representative examples. It also analyses the specificities of the UK framework, which includes three ways forward for companies in the area of workforce engagement: the appointment of a director from the workforce, the introduction of an employee advisory panel and the appointment of a non-executive director (NED) in charge of workforce matters. This chapter also aims to advance the argument that the most feasible way to encourage efficient employee participation is through the introduction of formal employee advisory panels and, in the longer term, the proliferation of share ownership by employees coupled with the right to elect a number of board members.