Final answer:
The codetermination model in question is the single-tier system, which features a single board of directors including employee representatives. This system is distinctive from the dual-system model and raises questions about balance of power and decision-making efficacy in corporate governance.
Step-by-step explanation:
The model described is known as the single-tier system, in which there is a single board of directors but includes employee representatives as board members. The single-tier system contrasts with the dual system, where there are two separate boards: a supervisory board and a management board, commonly found in countries like Germany.
In the context of corporate governance, the board of directors is tasked with ensuring that the company operates in the best interest of the shareholders, the true owners of the firm. However, there are concerns regarding executive dominance, where top executives have significant influence over the selection of board members. This situation could potentially lead to conflicts of interest and lessen the board's effectiveness in impartial oversight.
While including employee representatives on the board as seen in the single-tier system can diversify perspectives and encourage a broader consideration of stakeholder interests, it also raises questions about the balance of power and the efficacy of decision-making within a corporation's leadership structure.