Are family businesses able to include other stakeholders (employees etc) in their decision making and if so, how do they shape this governance aspect?

14 December 2022 1 8K Report

Dear RG Members,

I am looking for theory contributions on the following governance aspect:

Strategic decisions are based on open discourse, which aims at consensus. Stakeholders are involved in decision-making processes. Thus, for example, the goals of innovations can be debated. (One form of employee inclusion, for example, is german co-determination. A more extreme example is the democratization of the corporation.)

How could this governance aspect be implemented in family businesses and why are family businesses suitable for this kind of decision-making?

Fatima Boutaleb

I recommend that you read the following book which answers all the questions you have raised : Howorth, C., Kemp, M. R., & Nichol, T. J. (2023). 14 Codes of Governance for Family Businesses. De Gruyter Handbook of Business Families, 309.

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