Does democracy control business, or does business control democracy? This study of how companies are bought and sold in four countries - France, Germany, Japan and the Netherlands - explores this fundamental question. It does so by examining variation in the rules of corporate control - specifically, whether hostile takeovers are allowed. Takeovers have high political stakes: they result in corporate reorganizations, layoffs and the unraveling of compromises between workers and managers. But the public rarely pays attention to issues of corporate control. As a result, political parties and legislatures are largely absent from this domain. Instead, organized managers get to make the rules, quietly drawing on their superior lobbying capacity and the deference of legislators. These tools, not campaign donations, are the true founts of managerial political influence.
In Creating Cooperation, Pepper D. Culpepper explains the successes and failures of human capital reforms adopted by the French and German governments in the 1990s. Employers and employees both stand to gain from corporate investment in worker skills, but uncertainty and mutual distrust among companies doom many policy initiatives to failure. Higher skills benefit society as a whole, so national governments want to foster them. However, business firms often will not invest in training that makes their workers more attractive to other employers, even though they would prefer having better-skilled workers.Culpepper sees in European training programs a challenge typical of contemporary problems of public policy: success increasingly depends on the ability of governments to convince private actors to cooperate with each other. In the United States as in Europe, he argues, policy-makers can achieve this goal only by incorporating the insights of private information into public policy. Culpepper demonstrates that the lessons of decentralized cooperation extend to industrial and environmental policies. In the final chapter, he examines regional innovation programs in the United Kingdom and the clean-up of the Chesapeake Bay in the United States—a domestic problem that required the coordination of disparate agencies and stakeholders.
Does democracy control business, or does business control democracy? This study of how companies are bought and sold in four countries - France, Germany, Japan and the Netherlands - explores this fundamental question. It does so by examining variation in the rules of corporate control - specifically, whether hostile takeovers are allowed. Takeovers have high political stakes: they result in corporate reorganizations, layoffs and the unraveling of compromises between workers and managers. But the public rarely pays attention to issues of corporate control. As a result, political parties and legislatures are largely absent from this domain. Instead, organized managers get to make the rules, quietly drawing on their superior lobbying capacity and the deference of legislators. These tools, not campaign donations, are the true founts of managerial political influence.
In Creating Cooperation, Pepper D. Culpepper explains the successes and failures of human capital reforms adopted by the French and German governments in the 1990s. Employers and employees both stand to gain from corporate investment in worker skills, but uncertainty and mutual distrust among companies doom many policy initiatives to failure. Higher skills benefit society as a whole, so national governments want to foster them. However, business firms often will not invest in training that makes their workers more attractive to other employers, even though they would prefer having better-skilled workers.Culpepper sees in European training programs a challenge typical of contemporary problems of public policy: success increasingly depends on the ability of governments to convince private actors to cooperate with each other. In the United States as in Europe, he argues, policy-makers can achieve this goal only by incorporating the insights of private information into public policy. Culpepper demonstrates that the lessons of decentralized cooperation extend to industrial and environmental policies. In the final chapter, he examines regional innovation programs in the United Kingdom and the clean-up of the Chesapeake Bay in the United States—a domestic problem that required the coordination of disparate agencies and stakeholders.
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