Privatisation and Corporate Governance in Eastern Europe: The Emergence of Stakeholder Capitalism

An unintended outcome of transition is the emergence of new forms of governance.Stakeholders other than shareholders influence corporate management to a higher degree thanin mature market economies. Employees gained influence through ownership stakes or workcouncils, while elsewhere investment funds or governmental authorities retain influence viaequity stakes or otherwise. This paper reviews privatisation and the newly created forms ofprivate ownership to document the evolution of stakeholder capitalism and to discuss theopportunities and dangers that it may create for businesses in the region.