Towards a New Paradigm of Ownership: Employee Share Ownership as a Tool for Governance and CSR

Abstract

Employee Share Ownership (ESO) is emerging as a model redefining corporate ownership and labor relations, within the broader context of “shared capitalism.” Despite growing research, gaps remain in understanding its relationship with corporate governance and Corporate Social Responsibility (CSR). This chapter explores how ESO aligns employee interests with organizational goals, enhances governance, and fosters sustainable business models. It examines the theoretical foundations of ESO, its impact on governance, and its role in promoting CSR, addressing both benefits and challenges. The chapter also considers how ESO redefines capitalism and property rights, pushing towards more inclusive economic models. Finally, it discusses the integration of ESO with governance and CSR, and future research directions, highlighting its potential to create more equitable and responsible organizations.