Scaling Co-Determination
As the number of workers in an organization increases, the power of corporate policy and industry standards starts to affect more individuals. Just as a government is, in some sense, a business, a business is also, in some sense, a government. Scaling Co-determination, in conjunction with Regulatory Parity, balances the interests of material investors and labor investors.
Test Your Knowledge
This Webpage and Video Have a Quiz you can take to test your knowledge and understanding of the content. This lesson is part of a larger education series.
Resources + Work = Products & Services
scaling co-determination balances power between material and labor investors, ensuring fair representation in corporate governance.
Material Investors
Resources are contributed by Material Investors and cannot change states without Workers.
- Cash and Investments
- Real Estate and Facilities
- Machinery and Equipment
- Patents and Trademarks
- Land and Mineral Rights
Labor Investors
Work is contributed by Labor Investors whom cannot do their jobs without Resources.
- Decision Makers and Managers
- Operators and Producers
- Marketers and Sales Reps
- Financial and Legal Counsel
- Administrative Support Staff
Question: Which of these is most representative?
Traditional Board
Material Investors do not sell shares nor share decision power with labor investors.
Employee Stock Ownership Program (ESOP)
Material Investors Sell Shares to Labor Investors. Vesting Implementations vary.
Scaling co-Determination
Material Investors share decision power with Labor Investors as the number of Labor Investors increases until parity.
Worker Co-Op
Worker Co-Ops begin as equal partnerships and often have vesting schedules for new hires. Implementations vary.
Answer: It’s a Three-Way Tie
Employee Stock Ownership Program (ESOP)
As Original Material Investors Divest into the Labor Investors Funds, the Labor Investors become Material Investors as well.
Scaling co-Determination
Material Investors maintain their own material control and it’s benefits. Labor investors and Material investors share policy control.
Worker Co-Op
begin as equal partnerships and so the Labor Investors are always Material Investors as well.
Scaling Co-Determination is the Most Adaptable
Scaling Co-Determination can apply to every type of Organization Ownership or Member Structure.
Represents Material Investors
Guarantees representation and freedom for material investors (shareholders, members, partners, the common good) in their economic life.
Represents Labor Investors
Guarantees representation and freedom for labor investors (workers, employees, independent contractors) in their economic life.
Inexpensive to Implement
Brings Labor Expertise to the board without affecting material investments as they require no material divestment to implement.
Highly Adaptable
Works for non-stock organizations such as Common Good Corporations and Membership Organizations.
A Mixture of Experts
When Combined with Proportional Ranked Choice Voting Co-Determined Boards are a blend of ALL Material Investor and Labor Investor interests and expertise.