BOARD-LEVEL PARTICIPATION AND SR IMPLEMENTATION IN ORGANIZATION'S MANAGEMENT
BOARD-LEVEL PARTICIPATION AND SR IMPLEMENTATION IN ORGANIZATION'S MANAGEMENT

Summary/Abstract: Board-level participation (BLP) is a formal and indirect way of employee participation. BLP can be found mostly in Europe, and it is drawing growing interest as a practice, which allows employees to have impact on organization management, decision-making, identity and culture. BLP can become a trustworthy way for employees to receive first-hand information about the organizational operations, ensure better flow of information and turn employees into authentic partners in the management of the organization. According to stakeholder theory, employees are a central stakeholder group and should be represented in boards. It is argued that employees' interest in the long-term success of the organization can be more powerful than that of shareholders, who can decide to sell their shares and put their money somewhere else. All these characteristics can turn BLP into a central way for SR implementation in organizations. SR is the integration of economic, environmental and social considerations in management and decision-making. Research on SR issues focuses mainly on economic and environmental issues. When dealing with the social aspect, most works focus on philanthropy and volunteering - activities that might contribute to the reputation and public relation, but are not viewed as core business practices. This paper explores how managers in an organization, which integrates SR in its management systems, evaluate the contribution of BLP to leading the organization and to SR implementation.

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