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Giving employees mandatory ownership of companies will contradict everything that business and economy is about

September 14, 2018 Leave a comment

download (18)If you sneezed this week, you may have missed Labour’s Shadow Chancellor John McDonnell announcing that an incoming Labour government will make it mandatory for companies with 250 employees or more to have shared ownership of the business.

Businesses are not started with job creation in mind. Businesses are established to provide products and services.

The creation of jobs is just one positive consequence of a process which is driven by exploiting opportunity. An entrepreneurially driven process which for most has little to do with inclusivity, a sense of community or any conscious aim of creating future opportunities of any kind.

It simply doesn’t matter how socially attuned or in possession of an alternative truth that political leaders may imagine themselves to be. That’s the way that commercially viable business works and the principle which underpins the forward-looking economic success of any Country.

The role of Government is to create the environment in which businesses can thrive. The circumstances in which commerce can deliver positive consequences for all and to therefore be of benefit to everyone as a whole. It is not the role of politicians to micromanage business governance in a way which will then inevitably dictate how a company strategy, direction and therefore viability is determined.

 

image thanks to Reuters / http://www.dailymail.co.uk

 

 

 

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