Final answer:
Management must seek approval from the supervisory board under codetermination before implementing strategic plans. The supervisory board involves representatives of workers, ensuring a balance of interests within the firm. Codetermination aims at equitable decision-making, with the board overseeing corporate affairs in tandem with other corporate governance institutions.
Step-by-step explanation:
Under the system of codetermination, it is the supervisory board that requires management to seek approval before implementing strategic plans. Codetermination systems assume multiple opportunities for participation and equitable control over decisions and outcomes. This system is characterized by the existence of governing bodies that are truly representative of those with recognized rights. Critical decisions require the involvement and consent of key stakeholders, including workers' representatives, as part of the supervisory board's oversight role. The system aims to promote balanced decision-making that reflects the interest of various parties within a firm, including employees.
In the context of union formation, the role of management and unions can vary depending on the country. For instance, in the United States, forming a union requires an election, whereas in Canada, a sufficient proportion of employees signing an official card can establish a union. The National Labor Relations Board oversees these processes and resolves disputes.
Corporate governance, on the other hand, includes institutions such as the board of directors, the auditing firm, and outside investors, who all play roles in overseeing a company's operations. Companies experiment with different ways of addressing workers' concerns which sometimes resemble union activities, but with varying degrees of influence and effectiveness.