German Co-Determination

German co-determination is a system where employees have a formal role in company decision-making. In larger firms, workers elect representatives to sit on the company's supervisory board alongside owners or managers. This arrangement ensures that employees' interests are considered in strategic and operational decisions, promoting collaboration and transparency. It aims to balance corporate power, improve workplace conditions, and foster social partnership between labor and management. Co-determination reflects Germany’s commitment to shared responsibility and democratic participation within corporate governance, helping align business success with workers’ rights and welfare.