Co-governance, Social Responsibility and Economic Democracy

This article contributes to the justification of social responsibility and economic democracy, which can create a sustainable society through co-governance

The word co-governance is not the same as co-management, although it is also very often used in translations that do not distinguish between management and governance. Rozman explains: “Owners-shareholders have started to employ professionals called managers to manage their companies. The once unified function of governance (and management) has been divided into two organizational functions: governance, making decisions to protect owners’ interests, and management, coordinating business activities in a most efficient way while striving to attain goals and execute policies set by governance.” (Rozman 2000, 95) Later he explains: “The goal remained profitability, and corporate governance was conducted on the basis of ownership but not necessarily by the owners themselves. This was the first form of ‘non-owners’ or ‘nonself-governance’. Corporate governance and management went separate.” (Rozman 2013, 4)

Clarke (1998, 182–194 as cited in Rozman 2013, 6) recalls of different stakeholders’ governance similar processes in the past, like mutual funds, cooperatives, Mondragon cooperatives, Israeli kibbutzes and Yugoslav self-governance.