"Better stakeholders engagement ensures good governance". Analyse this statement in the context of employees as stakeholders.

Stakeholder engagement is an alliance-building tool. Corporations practice stakeholder engagement in an effort to understand the needs of their stake-holders, create partnerships and to promote dialogue. Stakeholder engagement identifies stakeholders, assesses stakeholder needs, develops stakeholder relations plans and forms alliances with stakeholders. Better stakeholders' engagement ensures good governance. Stakeholder engagement provides opportunities to further align business practices with societal needs and expectations, helping to drive long-term sustainability and shareholder value. Following are the some important examples of ensuring good governance by employee engagement: Right to consultation: The employees must be consulted on certain management decisions. This right increases transparency of management decisions and allows employee opinion to ameliorate the asymmetry of information between management and the market. Right to nominate/vote for supervisory board members: In many cases employee participation on the board is mandated. This right creates a check and balance system between management and the supervisory board, which in turn creates the perception of greater fairness. Compensation/privatization programs: These programs make employees holders of shares, thereby empowering employees to elect the board members, which, in turn holds management responsible. Participation in the capital: Employees may be made partner in the capital contribution. They may be given the shares under the ESOP scheme. This will lead to the improved employee commitment from employees and shareholders. Profit sharing: The profit-sharing plans should be broad-based for all or most of the employees rather than for executives only. This would encourage employee involvement, improve motivation, improve distribution of wealth and wage flexibility can improve firm performance. Whistle Blower Policy: A whistle blower is the one who exposes wrongdoing, fraud, corruption or mismanagement in an organization. A whistle blower is a person who publicly complains / discloses the concealed misconduct on the part of an organization or body of people, usually from within that same organisation. Whistle blower may be an employee, former employee, vendor, customer or other stakeholder. Whistle blowers are important stakeholders as they can work as a tool for authorities to get information of deviant behaviour or practices in organizations.