Why does ownership Matter

Ownership matters. It confers primary rights. Owners of companies set their strategic direction, purpose and terms of employment. Owners of land decide on what should be done with it. Owners of property decide on the amount they will devote to maintenance and improvement. These decisions have a profound impact on the rest of the economy and society.

As a result private ownership is not an absolute right that comes with no obligations. Economy and society expect a reciprocal relationship from owners. At the very least ownership should incur no harm to third parties, but democracies expect more. There is an expectation of conscientious stewardship of the assets. They should be husbanded and invested in rather than abused and neglected. Fit for purpose ownership is essential for wealth creation.

The Ownership Commission's task is to open up a debate about good ownership because ownership matters. Are some forms of ownership more conducive to wealth creation in a knowledge based economy than others? Are opportunities for extending the role of employee owned firms, co-operatives and mutuals being missed? To what extent can public goals be discharged by a wider range of ownership types?

The Commission is seeking to offer the best assessment yet of how varying ownership structures lead to varying outcomes which we judge good or bad, and what is obstructing Britain from having much more balance in varying ownership types.

 

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