The Impact of Economic Democracy

Based on an analysis of international research findings and on research data from over 1000 British companies (coupled with interviews with nearly 2000 employees) an informative set of conclusions is drawn. There is shown to be a link between the economic performance of companies and profit-sharing, but the nature of the relationship is a complex one. Industrial relations may be improved by schemes but good employers are found to be likely to introduce profit-sharing in any case. Attitudes to work do change but schemes have far more impact on satisfaction and communications rather than on productivity and on efforts put into work. These central conclusions will be of considerable interest to academics and practitioners alike. They lend support to the case for expanding economic democracy, and they help to shed light on an issue of international importance, which is likely to become more consequential in the mid to late 1990s and into the 21st century itself.