For decades now, the wealth gap in the United States has been growing wider. The effects of this concentration of resources at the top can be felt throughout society, from slowed economic growth to the degradation of democracy itself. In the business world, the problems associated with wealth inequality are stark enough that companies increasingly feel compelled to act. More and more businesses are promising to look to the interests of stakeholders, not just shareholders, in an effort to play a healing role in society. The question for most is, How?
Brian Stauffer
The Big Benefits of Employee Ownership
Research shows it can reduce inequality and improve productivity.
May 13, 2021
· Long read
Summary.
Inequality in the U.S. has been getting worse for decades: The richest 1% own a majority of all business wealth, and the top 10% own more than 90%. It has become clear that companies need to address the problem. One place to start is by expanding employees’ ownership stakes in companies, giving workers a path to building wealth. There’s incentive for companies, too: Businesses with 30% or more employee ownership are more productive, grow faster, and are less likely to go out of business than their counterparts.
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