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

"Better stakeholders' engagement ensures good governance". Employees are one of the important and primary stakeholders of the companies. Employees have a stake in the long-term success of the corporation. Employees possess skills and knowledge which are specific to their particular corporation. Moreover, employees care about a wide range of decisions within corporations. Stakeholder engagement leads to increased transparency, responsiveness, compliance, organizational learning, quality management, accountability and sustainability. Stakeholder engagement is a central feature of sustainability performance. Following are some important example for ensuring good governance by employees: Right to consultation - where 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 that make employees holders of shares, thereby empowering employees to elect the Board Members, which, in turn holds management responsible.