cyu
9th May 2010, 00:18
More moderate than leftist, but an interesting look at the differences between this and right-wing companies. Excerpts from http://www.guardian.co.uk/business/2010/mar/16/john-lewis
http://static.guim.co.uk/sys-images/Guardian/About/General/2010/3/15/1268672847143/John-Lewiss-flagship-stor-001.jpg
John Lewis is owned by a trust on behalf of its employees, each of whom has a say in its running and a share in its profits. This is Britain's largest and most venerable example of worker co-ownership. Its avowed purpose is not the making of shedloads of short-term profit to placate a bunch of remote and greedy shareholders, but "the happiness of all its members, through their worthwhile and satisfying employment in a successful business" (that's from the partnership's constitution. It bears re-reading).
John Lewis's ongoing success is increasingly prompting all three main political parties to point to it as a possible template – for other companies, for schools, hospitals, even local councils.
"It's a good company to work for," says Pedro. "I didn't realise how good until I joined." Employer-employee relations at John Lewis, says Nicola, "are completely different. They want you to be happy."
it is "all wrong to have millionaires before you have ceased to have slums"; that "the dividends paid to some shareholders" for doing essentially nothing were obscene when "workers earn hardly more than a bare living"
The chairman and board run the company's commercial activities, but an 82-member partnership council elects nearly half the board (and in theory, can sack the chairman). And the Partnership council itself is largely elected through a network of forums representing every department of every JL branch and Waitrose supermarket.
"you have a vested interest in making sure it works, for you and for the people you work with." In floor-coverings and furnishings, Beth Smith says co-ownership ensures you "make that extra effort. And because you're all partners, there's no backstabbing. Motivation's different... The partners' voices really do carry weight. It's not just window-dressing: we decided we didn't want to work on Boxing Day, and we didn't." Smith reckons another company would have to double her salary to get her away from John Lewis, "and even then I wouldn't be happy".
Employee-owned companies currently contribute some £25bn to the British economy. According to an annual index compiled by a leading law firm, they outperform the FTSE by roughly 10% each year. Research by the Cass Business School indicates that employee-owned businesses also create jobs faster; are significantly more resilient in an economic downturn; deliver far better customer satisfaction; boast substantially higher value added per employee; and, depending on the sector and size of the business, can deliver markedly higher profits
http://static.guim.co.uk/sys-images/Guardian/About/General/2010/3/15/1268672847143/John-Lewiss-flagship-stor-001.jpg
John Lewis is owned by a trust on behalf of its employees, each of whom has a say in its running and a share in its profits. This is Britain's largest and most venerable example of worker co-ownership. Its avowed purpose is not the making of shedloads of short-term profit to placate a bunch of remote and greedy shareholders, but "the happiness of all its members, through their worthwhile and satisfying employment in a successful business" (that's from the partnership's constitution. It bears re-reading).
John Lewis's ongoing success is increasingly prompting all three main political parties to point to it as a possible template – for other companies, for schools, hospitals, even local councils.
"It's a good company to work for," says Pedro. "I didn't realise how good until I joined." Employer-employee relations at John Lewis, says Nicola, "are completely different. They want you to be happy."
it is "all wrong to have millionaires before you have ceased to have slums"; that "the dividends paid to some shareholders" for doing essentially nothing were obscene when "workers earn hardly more than a bare living"
The chairman and board run the company's commercial activities, but an 82-member partnership council elects nearly half the board (and in theory, can sack the chairman). And the Partnership council itself is largely elected through a network of forums representing every department of every JL branch and Waitrose supermarket.
"you have a vested interest in making sure it works, for you and for the people you work with." In floor-coverings and furnishings, Beth Smith says co-ownership ensures you "make that extra effort. And because you're all partners, there's no backstabbing. Motivation's different... The partners' voices really do carry weight. It's not just window-dressing: we decided we didn't want to work on Boxing Day, and we didn't." Smith reckons another company would have to double her salary to get her away from John Lewis, "and even then I wouldn't be happy".
Employee-owned companies currently contribute some £25bn to the British economy. According to an annual index compiled by a leading law firm, they outperform the FTSE by roughly 10% each year. Research by the Cass Business School indicates that employee-owned businesses also create jobs faster; are significantly more resilient in an economic downturn; deliver far better customer satisfaction; boast substantially higher value added per employee; and, depending on the sector and size of the business, can deliver markedly higher profits