Financial Participation for Sustainable Business Development

Abstract

The relationship between employees and their corporations are becoming an
important issue of discussion on corporate performance. Literature on
corporate strategies argues that providing incentives and motivation to
employees can encourage efficiency and productivity that can lead to
sustainability. While on the other hand, others argue that motivation can fail
with a few examples.
This paper discusses such relations in terms of the possibility of mitigating
some of the transaction costs caused by improper management of corporate
structures and the resulting principal-agent setting. A strategic management
approach is applied in which the challenges in corporate performance and
employees’ motivation are turned into objectives by presenting a framework
of financial participation strategy to encourage sustainable business
development. Financial participation (FP) is discussed in detail