Re: wealth distribution and corporate control

[Shann Turnbull <sturnbull@mba1963.hbs.edu>]

Tim 

The quick short answer is through "stakeholder mutualisation".

The long slow answer is the article I am preparing with the following abstract:

                Competitive Advantages from Re-inventing Mutuals

This article investigates and compares the competitive advantages of
stakeholder mutuals with firms publicly traded, family, or government
owned.  The operating advantages of each of these four forms of firms are
considered, including those operating in a natural monopoly as found with
infrastructure services.  Firms controlled by interdependent but separate
constituencies of customers, employees and suppliers provide a basis for
creating competition for corporate control within the firm much more
efficiently and effectively than externally through being publicly traded
on a stock-exchange.  The empowerment of stakeholder constituencies to
directly participate in corporate governance reduces the need for
government regulation to protect stakeholders.  This also enhances
operating flexibility and competitiveness.  Re-inventing mutuals with
stakeholder control as found in Mondragón, provides a superior approach to
increase the economic efficiency and equity of industry while creating
building blocks to develop a participatory stakeholder democracy.

Best regards

Shann

At 11:58 PM 19/10/1999 , Tim Mitchell wrote:
>Shann,
>
>To use a practical example that is close at hand, for you and me, but within
>the realms of possibility:
>
>Here in New South Wales, as of 1/1/2001, there will be full retail
>contestability in gas and electricity, ie every home owner will have a
>choice of a wide variety of supplier companies for these basic services.
>
>The competition will be ferocious. Companies will be pursuing all manner of
>creative marketing techniques to win customers from their rivals and secure
>the ones they already have.
>
>How could:
>
>(1) these companies offer CSOP incentives to customers; and
>
>(2) the State Government, which will regulate this competition, encourage
>such incentivisation?
>
>Regards
>
>Tim Mitchell
>

Shann Turnbull
P.O. Box 266 Woollahra, Sydney, Australia, 1350
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