Growing the Wealth: How Government Encourages Broad-Based Inclusive Capitalism, a report recently released by the Center for American Progress shows that inclusive capitalism, defined as “…granting workers ownership stakes in the company or a share of its profit based on workers’ collective performance…” has helped companies grown in the U.S.
Inclusive capitalism, when partnered with democratic workplace practices, has a proven record of helping workers and businesses alike in a myriad of ways.
ESOPs are an effective means of rewarding employees and generating wealth and are included in the report;
Douglas Kruse, professor and director of the doctoral program in industrial relations and human resources at Rutgers University, found that productivity improved by 4 percent to 5 percent on average in the year of ESOP adoption and continues after adoption, more than doubling the rate of annual productivity growth of the U.S. economy over the past 20 years.
The report combines basic knwoledge about inclusive capitalism including the types that are currently practiced as well as information on existing and historic legislation and the political landscape of broad-based capital-sharing programs.
For more information, and to download the full pdf of the study, see the Center for American Progress webpage.