JOURNAL ARTICLE

Shared Capitalism and Corporate Sustainability: Broad-Based Employee Share Ownership, CEO Ownership, and Corporate Environmental Performance.

  • Published In: Business & Society, 2025, v. 64, n. 1. P. 163 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Lee, Jegoo; Kruse, Douglas L.; Blasi, Joseph R. 3 of 3

Abstract

This article investigates the impact of broad-based employee share ownership (ESO) on corporate environmental performance (CEP) in large U.S. publicly traded companies from 2009 to 2016. Drawing on corporate governance, social exchange, and stakeholder utility theories, the study finds that firms with broad-based ESO exhibit significantly better positive CEP, with the ESO effect surpassing that of CEO ownership. Additionally, the presence of trade unions, representing employee voice and participation, strengthens the positive relationship between ESO (especially relative to CEO ownership) and CEP. These findings highlight the role of employees as owners in fostering corporate sustainability and suggest that shared capitalist compensation systems can enhance firms' environmental responsibility beyond traditional ownership structures.

Additional Information

  • Source:Business & Society. 2025/01, Vol. 64, Issue 1, p163
  • Document Type:Article
  • Subject Area:Economics
  • Publication Date:2025
  • ISSN:0007-6503
  • DOI:10.1177/00076503241254532
  • Accession Number:181250468
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