Stakeholder Capitalism In Action - Spotlight on Germany’s Works Councils

This work throws a spotlight on the German model of corporate governance, which enshrines employee co-determination in law, and provides for the establishment of Works Councils, which play an important mediating role between employers and employees.

In Germany, Works Councils play an important interfacing and mediation role at both the individual employee and at the company level. The Councils aim to improve conflict resolution and align the long-term interest of all parties around company resilience. This model has enjoyed broad acceptance domestically and is considered by many to have been a supporting factor in Germany’s robust economy.

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