BtF Blog

The Deputy Prime Minister Nick Clegg has put forward a similar initiative to what Labour have proposed, this call for more responsible capitalism. Clegg’s focus has been to promote greater employee shareholder ownership, following a similar co-operative led business style. His aims and objectives behind this is to “unlock growth” and use this as another method to get the economy engine starting again. The process of employees being involved in the ownership of the business that they work for, creates for them greater incentive to put a bigger input into the business. The consequence of this is seen to create a more productive business where there are lower numbers of staff turnover, low absenteeism and lower production costs. Also employees are seen to gain from greater employee benefits and higher wages. Nick Clegg s said "Employee ownership can also help fulfil the increasing desire we have for more influence in our work so as to unleash our potential and productivity". The subsequent benefits for businesses are that they are more effective in becoming successful and established such as ‘John Lewis’ and there is greater benefit for the workforce at the same time.

The Government’s objective for greater employee ownership is impart part of their crack down on ‘crony capitalism’. Part of this could be seen to be a response to the continuing occupy protest and as a result the government having to look at giving shareholders more power over executive pay. This employee ownership is also part of a similar strategy which Lib Dem Business Minister Ed Davey is currently layingout. His aim is to help remove the barriers that prevent employee ownership. This new drive for great employee participation in business is a positive one as it helps to develop better business for the future.

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(Information from - BBC NEWS - http://www.bbc.co.uk/news/mobile/uk-16570840)