Collective Commitment through Inclusive Governance

Abstract

While researchers have applied the commitment concept to employees and firms, the relationship between these forms of commitment remains unexplored. This paper proposes a network-based governance system to improve the relationship between personal and collective commitments. Intentions are often ascribed to organizations according to formal policies and management decisions, but these ascriptions marginalize informal processes and disenfranchise rank-and-file employees. By including a broader community in the governance process, formal and informal arrangements may work in concert. To accomplish this goal, governance must be coherent, dynamic, and decisive. Neither shareholder primacy nor workplace democracy meets these conditions, but expert election, a hybrid form of governance, does. The paper concludes by describing the implications of an inclusive governance framework for integrative social contracts theory, the theory of the firm, and responsible innovation.