Research paper (minimum 1750 words, APA format): In Germany, under the model of

Question

Research paper (minimum 1750 words, APA format): In Germany, under the model of “stakeholder capitalism”, employee representatives sit on company boards of directors. In the German model of business, it is assumed that both labor (employee representatives) and capital (shareholder representatives) have important stakes in the enterprise and should work in harmony with each other. In the United States, the board of directors usually represents only the owners of the business. What advantages are there to employees as stakeholders in Germany that are not provided to employees in US companies? In the United States, how do employees let management know their stakeholder concerns?

Instructions: You will need to do an in-depth literary search on the topic in order to create a fully-developed response. You will need to include in-text citations and a references list for external references used in supporting your points for this question. You should have no fewer than 7 references for your response to this particular question, 4 of which must be from peer-reviewed sources.

Explanation / Answer

Modern capitalist business companies usually resemble Feudal aristocracies, with power being concentrated at the top and only the property owners being allowed to have a voice (theoretically) in the organization's government.  Hence the terminology "shareholder capitalism."  

This model has long been promoted by mainstream economists based on the simplistic assumption that human motivation can be boiled down to the rational pursuit of self-interest .

However, there is another model, called "stakeholder capitalism," that is better aligned with what we have learned about human nature. It is also more democratic and is arguably a more effective form of corporate governance

The enlightened corporation should try to create value for all of its constituencies. From an investor's perspective, the aim of a business is to maximize profits. But that's not the purpose for other stakeholders - for consumers, employees, suppliers, and the community. Each of these groups will define the purpose of a business in terms of its own needs and desires, and each perspective is valid and legitimate

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