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Influence of Employee Ownership on Environmental and Social Sustainability
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Author(s): P. Selvakumar (Department of Science and Humanities, Nehru Institute of Technology, Coimbatore, India), Sudhanshu Chandra (Maulana Azad National Urdu University, India), Saumyaa Pandey (Maulana Azad National Urdu University, India), Krishna Charan J. (Vel Tech Rangarajan Dr. Sagunthala R&D Institute of Science and Technology University, India), Nitika Malik (Maharshi Dayanand University, India)and Rishi Chaudhry (Maharshi Dayanand University, India)
Copyright: 2025
Pages: 24
Source title:
Integrating Governance and Corporate Social Responsibility in Employee Share Ownership
Source Author(s)/Editor(s): Zyed Achour (University of Carthage, Tunisia)
DOI: 10.4018/979-8-3693-7031-5.ch005
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Abstract
Employee ownership represents a strategic approach that aligns the interests of employees with those of the organization through direct or indirect ownership stakes. This ownership can manifest in various forms, including employee stock ownership plans (ESOPs), stock options, and worker cooperatives, each offering unique benefits and implications for both employees and the organization. The fundamental idea behind employee ownership is to foster a deeper sense of commitment and responsibility among employees, leveraging their stake in the company's success to drive higher productivity, innovation, and job satisfaction. An ESOP is a prevalent model where employees are granted shares of the company, typically through a trust fund, which holds the shares on behalf of employees until they retire or leave the company. ESOPs can serve as both an employee benefit and a financial strategy for companies, providing a mechanism for business owners to sell their stake while retaining employee engagement and continuity.
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