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Models of the Company and the Employment Relationship
Author(s) -
Parkinson John
Publication year - 2003
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/1467-8543.00284
Subject(s) - corporate governance , nexus (standard) , shareholder , accounting , corporate law , business , institution , corporate social responsibility , parent company , limited company , subsidiary , public relations , law , finance , political science , computer science , multinational corporation , embedded system
How the company is conceptualized has important implications for employees. Divergent theoretical approaches towards the company are synthesized below to form three models: the ownership, nexus of contracts, and social institution models. The first two endorse current UK corporate governance practice, in which companies are run for the ultimate benefit of their shareholders, who have the exclusive right to appoint the board. The third model questions this arrangement and, more generally, the characterization of the company as a wholly private association. The conclusion examines the implications of the third model for reform of company law and governance in the UK.