Research On The Participation Of Workers And Staff Members In Corporate Governance In China

The question of employees’participation in corporate governance arises from the theories of shareholders, enterprise ownership and economic democracy. It reflects the balance between the shareholders and stockholders. A comparison between the different application of the corporate governance systems in different countries can give a full scale analysis to the process of the formation and development of the system and give a show to the reasons why different systems are chosen in different regions, as well as how the stock right structure, corporate governance structure and social welfare policy affect the employees’ participation in corporate governance. In another word, the mode of the corporate governance in a certain country can reflect to some extent, the possibility that the economic development, social governance tradition and the current institutional environment of the country provide for its employees’ participation in corporate governance.First of all the paper concentrates on the theoretical perspective to see how these theories contribute to this system. According to the shareholders theory, employees as shareholders, their interests should be reflected in the corporate governance. According to the enterprise ownership theory, whether employees can be the sharer of decision-making rights should be decided by the exchange costs. According to the agent costs theory, this system is a way of reducing the agent costs, although somehow adding some other costs. According to the economic democracy theory, the power of employees to participate in the corporate governance is developed from the political concept of democracy.Secondly, through a revealing to relevant system applications and legislative orientations in outside countries, this paper analyses the systematic formation mechanism of the employees’participation in corporate governance from the perspective of stock right structure, corporate governance structure, social welfare policy and employee’s uniformity in interests.Thirdly, this paper introduces the detailed regulations in Chinese law and analysis the status quo of this system’s construction in China under the current social and economic background and reveals its main shortages and restrained factors.Lastly, this paper gives some suggestions and advices on improvement of the Chinese system of employees’ participation in corporate governance based on the theory and analysis of the relevant factors above and practice of other countries.