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Governance and decision making at Carris Reels

Daphne Berry (Department of Management, Marketing, and Entrepreneurship, University of Hartford, West Hartford, Connecticut, USA)
David Fitz-Gerald (Carris Reels Inc., Proctor, Vermont, USA)

Publication date: 3 January 2017

Abstract

Synopsis

Carris Reels, a reel-manufacturing company headquartered in Vermont, had long-standing goals of being employee owned and governed. They also had a strong organizational (ownership) culture. The Corporate Steering Committee (CSC), a committee composed of representatives from management and non-management employees, and the board of directors had a decision to make about adding two new members to the board. With these new members, the board of directors would be made up of both members of management and non-management employees. Was Carris forfeiting wiser outside counsel in favor of company insiders? What about for the future of the company?

Research methodology

The data for this case were collected from discussions and informal interviews with Carris Reels employees, and archival data from the company intranet which includes an archival of company newsletters, meeting minutes and announcements. Information on the Employee Stock Ownership Plan (ESOP), board of directors, the CSC, and ESOP trustees from these sources were also used.

Relevant courses and levels

This case is suitable for strategic management, and social responsibility and social enterprise-focused courses for upper-level undergraduates and MBA students.

Theoretical bases

The sources, development, and outcomes of a strong organizational culture are important to this case. Schein (1989) and others (Harris and Ogbanna, 1999) address the role of a company’s founder in development of the company’s culture. Research addressing ownership and participation in the context of an ownership culture indicates positive outcomes to employees and to their companies (Logue and Yates, 2005; Ownership Associates, 1998).

Keywords

Acknowledgements

An embryo case version of this case was presented at the 2015 Eastern Academy of Management CASE Association meeting. The authors would like to thank Bill Carris and other employee-owners at Carris Reels who gave of their time and knowledge toward the development of this case. The authors would also like to thank Dr. Cecile Betit for her assistance.

Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author/s may have disguised names; financial, and other recognizable information to protect confidentiality.

Citation

Berry, D. and Fitz-Gerald, D. (2017), "Governance and decision making at Carris Reels", , Vol. 13 No. 1, pp. 5-24. https://doi.org/10.1108/TCJ-09-2015-0047

Publisher

:

Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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