RE: Re sorting the issues

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

Michael Harrington raises the need to keep people connected to income
producing property even when they not employed and expressed concerned
about people receiving dividends from stakeholder shares involvement.  He
raised this question in his post of October 18th
http://cog.kent.edu/archives/ownership/msg00008.html .  I would like to add
to my reply of October 19th
http://cog.kent.edu/archives/ownership/msg00008.html to suggest
three approaches to minimise this problem:

1. Expand equity ownership on basis of personal involvement as an employee,
customer, supplier of member of the a corporate who is, and the host community;
2. Connect people through joint ownership and control of their residential
community, even if they are tenants, through introducing Community Land
Banks (CLBs) described in my book and my New Strategies paper
http://cog.kent.edu/lib/turnbull1/turnbull1.html  (Illustrated in Figures
13 & 14)
3. Keep corporations to human scale by changing the rules to create
Ownership Transfer Corporations (OTC's) which grow by establishing new
"off-spring" enterprise in a similar manner as is done at Mondragon. (Refer
to my posting )

My suggested pattern of control in an OTC with deferred ownership and
control rights for its employees, customers and suppliers including the
host community is set out in Figure 11 'Stakeholder governance' of my "New
Strategies" paper.  It will be noted that Figure 11 is based on Figure 15
which describes a Mondragon firm. These arrangements and those suggested in
points 2 and 3 would create a "holonic" ownership and control architecture
described in my corporate governance paper
http://cog.kent.edu/lib/turnbull4.html and in my posting
http://cog.kent.edu/archives/ownership/msg00080.html

Regards

Shann

At 06:00 AM 5/11/1999 , you wrote:
>Responding to Dan (IN CAPS) below:
>
>Michael Harrington
>The Milken Institute
>1250 Fourth Street
>Santa Monica, CA 90401
>mharrington@milken-inst.org
>TEL: (310) 998-2699
>FAX: (310) 998-2625
>
>-----Original Message-----
>From: Dan Bell [mailto:dbell@kent.edu]
>Sent: Thursday, November 04, 1999 9:12 AM
>To: ownership@cog.kent.edu
>Subject: Re: Re sorting the issues
>
>
>Responding to Alan Zundel,
>
>>I agree, but worry about the people who would still be left out of any 
>>significant ownership stake.
>>Kelso
>>had a universal plan where non-recourse credit was given to individual 
>>citizens for investment rather than channelled thru trusts with
>beneficiaries 
>>defined by some relation to a business.
>
>I too want to find ways for the capital-less to accumulate
>capital, especially those who are not connected to a
>private company.
>AGREED, AS WOULD KELSO.
>
>
>One problem that I think needs to be addressed when creating
>whatever solution is created, is including what Jeff Gates
>refers to as "up close capitalism".
>
>ESOPs are great because they allow capital-less people who
>have a natural "up close" connection to a business, to
>accumulate capital upon which they can have an impact.
>
>I am worried that a capital account, set up in my name,
>which simply sends me a dividend check each month, may
>be little more than another form of welfare. I am still
>disconnected from the capital which is adding to my income.
>EMPLOYMENT IS NEITHER THE ONLY, NOR NECESSARILY THE MOST IMPORTANT
>CONNECTION BETWEEN THE INDIVIDUAL AND THE SYSTEM. ONE IS A HUMAN BEING, A
>CITIZEN, A COMMUNITY MEMBER, ETC. IN ADDITION TO BEING A WORKER. I THINK
>SHAREHOLDING IS A FUNDAMENTAL CONNECTION BETWEEN THE INDIVIDUAL AND THE
>CORPORATE CAPITALIST SYSTEM AND THE UNEMPLOYED OR SELF-EMPLOYED DEFINITELY
>NEED TO HAVE THAT CONNECTION AS WELL. I DON'T THINK SHAREHOLDING IS
>DISCONNECTED AND CERTAINLY NOT WELFARE BECAUSE WITH SHAREHOLDING ONE HAS A
>STAKE IN POLITICS AND TAX POLICY AND ENVIRONMENTAL POLICY ETC. AND MUST MAKE
>THE NECESSARY TRADE-OFFS AS A FULL PARTICIPANT. BUT THERE ARE STILL
>CORPORATE GOVERNANCE/STAKEHOLDERS ISSUES THAT NEED TO BE RESOLVED.
>MICHAEL
>
>
>Dan Bell
>International Program Coordinator
>Ohio Employee Ownership Center
>Kent State University
>Kent, OH 44242
>(330) 672-3028
>(330) 672-4063 fax
>dbell@kent.edu
>http://www.kent.edu/oeoc/

Shann Turnbull
P.O. Box 266 Woollahra, Sydney, Australia, 1350
Phone: 02 9328 7466 office; 02 9327 8487 home
Fax: 02 9327 1497 home & office.  Mobile 0418 222 378
Outside Australia, replace first "0" with "61" after international access code
Life long E-mail: sturnbull@mba1963.hbs.edu
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