New frontiers for employee ownership in Latin America

Introduction

This initiative is a Triangular Cooperation effort, developed with the support of the ADELANTE Window. Through the "Employee Ownership for Economic Democracy in the Private Sector" Initiative, launched under the 2023 edition of the ADELANTE Window, the Partnership identified key conditions for successfully implementing Broad-Based Employee Ownership (BBEO) in Latin America.

Building on the success of this initiative and the interest it generated in the Latin American and Caribbean (LAC) region, the Partnership—led by the Instituto Tecnológico y de Estudios Superiores de Occidente (ITESO) and the Consejo Empresarial de Jalisco (CEMJAL) in Mexico, alongside the University of Aix-Marseille and the ESSCA School of Management in France, and the Pontificia Universidad Católica del Perú (PUCP)—decided to expand research on Employee Ownership models to include Argentina and Colombia.

To achieve this, the Partnership collaborated with academic and civil society organisations, integrating new members:

• EnTerrenoSocial (Argentina) – an organisation specialising in the design and implementation of triple-impact strategies and projects.
• Universidad Católica de Córdoba (UCC) (Argentina) – recognised for its research expertise in economic and social development.
• Universidad de los Andes (Colombia) – a leading institution in economic and social research.

This initiative explores how Broad-Based Employee Ownership (BBEO) can:

• Enhance corporate performance.
• Increase business resilience during crises.
• Reduce income and wealth inequality.
• Help eliminate working poverty.
• Contribute to achieving the Sustainable Development Goals (SDGs).

To support these objectives, the Partnership is developing a policy model to scale BBEO in Argentina, engaging in joint research and policy recommendations, while drawing on insights from France, Slovenia, and the eurESOP model.

The overarching goal is to advance inclusive and sustainable development in alignment with SDG 8, by improving employee productivity, enhancing business performance, and driving financial success through cost savings and increased profitability.

Objectives

This Triangular Cooperation Initiative seeks to strengthen the capacities of the Partnership entities to create a broad-based employee ownership model for Latin America based on the European and Mexican models that are characterised by an orientation towards inclusion, equity, and a horizontal approach.

Project activities

This initiative is structured around four key activities, designed to promote Broad-Based Employee Ownership (BBEO) through a comprehensive approach that fosters knowledge sharing, capacity building, and collaboration opportunities.

Key activities included:

• Capacity building: strengthening capacities to promote BBEO as a tool for fostering social peace and reconciliation, working in collaboration with both the private and public sectors.
• Model implementation: developing a BBEO model tailored for Latin America, drawing insights from European and Mexican experiences and adapting them to the Argentinian context, with potential applications in other countries in the region.
• Policy development: the knowledge generated will take into account Argentina’s cultural and legal context, providing:
  • A standardised description of the employee ownership model.
  • Policy proposals to facilitate the widespread adoption of employee ownership.
• Research collaboration: partnership entities will lead a comprehensive international research project involving all academic partners and collaborators. This will include:
  • An in-depth study with a detailed diagnosis of the current state of employee ownership in Argentina.
• Community engagement: sharing insights and experiences from different cultural and legal contexts, with active participation from companies, experts, investors, policymakers, students, and academics during meetings and site visits.

Cross-cutting themes

Throughout the initiative, there will be a strong emphasis on:

• Gender mainstreaming
• Environmental sustainability
• Climate change

These themes will be highlighted in specific case studies and incorporated into joint activities, particularly within the framework of the Latam ESOP model.

Results

Through this Triangular Cooperation Initiative, the Partnership entities will collaborate to share knowledge and develop a Broad-Based Employee Ownership (BBEO) model tailored to Latin America, drawing on insights from European and Mexican experiences. Additionally, the initiative seeks to strengthen capacities to promote BBEO as a tool for fostering social peace and reconciliation, working in collaboration with both the private and public sectors.

Implementing partner

ESSCA School of Management