Abstract
Chapter authors are renewing their model aimed at innovation of employees’ and citizens’ rewards and ownership in order to fight the dangerous precariat status of the non-owners. Model includes methods of ESOP and USOP, employees’ internal capital accounts, citizens’ internal social capital accounts, normal pay-role, innovation-related rewards, universal basic income, shorter working time, national strategy on promotion of social responsibility, and NGO’s initiative for more social responsibility, organized by Human Resources Office. Development of social responsibility depends on owners as the decisive persons; let their co-workers and co-citizens be organized and enjoy ownership stimulation along the lines of the principles of social responsibility. Humanity faces a critical crisis that might be solvable with social responsibility, which is well supported, e.g. by the model briefed here.
Editorial comment: Corporate governance must face this fact and innovate the employees’ and citizens’ rewards and ownership in order to fight the dangerous precariat status of the non-owners in a socially responsible and hence profitable way. Model includes methods of ESOP and USOP, employees’ internal capital accounts, citizens’ internal social capital accounts, normal pay-role, innovation-related rewards, universal basic income, shorter working time, national strategy on promotion of social responsibility, and NGO’s initiative for more social responsibility.
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- 1.
See more in the chapter by Mulej and Bohinc in this book, Volume 2.
- 2.
At the beginning of the Winter Olympic Games in South Korea on 12 February 2018, RTV Slovenia was showing a TV documentary on South Korea life. They enjoy a very high material standard, very long working hours; even for pupils there is hardly time to sleep; and there is a very high number of suicides. Such life style hardly makes sense, but it can be expected all around the world soon due to the 4th Industrial revolution (Šarotar Žižek and Mulej 2018). Social responsibility is less important than the owners’ profit, so are humans.
- 3.
On 1 March 2018 M. Mulej received from Marija Mikuž via internet a new example: a small town Marinaleda in Andalusia, Spain has no criminal, no police, no unemployment; it has free homes for its few thousand citizens. The basis is a cooperative socio-economic relation with no consumer society. The comment calls Marinelada a small social democracy utopia. The Mayor Gordillo, jailed 7 times earlier, who has been in demonstrations and hunger strikes often became mayor after 12 years of fight. During the crisis of 2008, he distributed stocks from the local supermarket to citizens. Then he built a city in which everybody has everything necessary. They have an agricultural cooperative in which practically everybody works. They share income on an equal basis; their pa is about 1200 Euros. Everybody receives a piece of land and support from the town office to build a home. Then, they contribute 15 Euros a month until their death. They may not sell their home for a private benefit. They want no consumer society.
- 4.
In Wikipedia (accessed 17 February 2018) one can read: The Mondragon Corporation is a corporation and federation of worker cooperatives based in the Basque region of Spain. Graduates of a local technical college founded it in the town of Mondragon in 1956 led by a local priest, who established their school and a cooperative bank, the Caja Laboral. When he came there, Mondragon had a population of 7000. Before establishing the school, he worked with the local population since 1943 on education about a form of humanism based on solidarity and participation, in harmony with Catholic social teaching, and the importance of acquiring the necessary technical knowledge before creating the first co-operative. Its first product was paraffin heaters. It grew to the tenth-largest Spanish company in terms of asset turnover and the leading business group in the Basque Country. At the end of 2014, it employed 74,117 people in 257 companies and organizations in 4 areas of activity: finance, industry, retail and knowledge. By 2015, it employed 74,335 people. Mondragon cooperatives operate in accordance with the Statement on the Co-operative Identity maintained by the International Co-operative Alliance. Its framework of business culture has its structure based on a common culture derived from the 10 Basic Co-operative Principles, in which Mondragon is rooted: Open Admission, Democratic Organization, the Sovereignty of Labor, Instrumental and Subordinate Nature of Capital, Participatory Management, Payment Solidarity, Inter-cooperation, Social Transformation, Universality and Education.—These practices are not our central topic here.
- 5.
In Mondragon the difference between the highest and lowest income is five to one; there is not necessarily the same relation in its units abroad (Wikipedia, accessed on 20 February 2018). On the other extreme Felber (2012) reports (with citation) about a manager of a hedge fund receiving 10 billion USD a year.
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Mulej, M., Avsec, D. (2020). Social Responsibility—Either with Precariat or with Employees’ and Citizens’ Ownership?. In: Mulej, M., O’Sullivan, G., Štrukelj, T. (eds) Social Responsibility and Corporate Governance. Palgrave Studies in Governance, Leadership and Responsibility. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-44172-2_6
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