Partnership, ownership and control

Abstract

Prevailing patterns of dispersed share ownership and rules of corporate governance for UK listed companies appear to constrain the ability of managers to make credible, long‐term commitments to employees of the kind needed to foster effective labour‐management partnerships. We present case study evidence which suggests that such partnerships can nevertheless emerge where product market conditions and the regulatory environment favour a stakeholder orientation. Proactive and mature partnerships may also be sustained where the board takes a strategic approach to mediating between the claims of different stakeholder groups, institutional investors are prepared to take a long‐term view of their holdings, and strong and independent trade unions are in a position to facilitate organisational change.