Can you elaborate on how shareholders having a say in governance relates to worker compensation? Why shouldn't shareholders have control over governance?
They shouldn't have complete control over governence because, especially in larger businesses, the shareholders are less invested in what a business does than the stakeholders.
A classic example would be an employee forced to work in an unhealthy manner. If the cost of replacing the employee when they're worn out is less than the extra profit made by causing the employee to work in that manner it might be the right form of governance for shareholders. Even if it would not be profitable if the health costs weren't externalised.
A classic example would be an employee forced to work in an unhealthy manner. If the cost of replacing the employee when they're worn out is less than the extra profit made by causing the employee to work in that manner it might be the right form of governance for shareholders. Even if it would not be profitable if the health costs weren't externalised.