What does universal basic income have to do with modern corporate governance?

The short answer is: Götz Werner (founder of German drugstore chain dm), because he was one of the passionate champions advocating both aspects throughout his entire life.

Well, the somewhat longer answer is: Both universal basic income and modern corporate governance promotes free development of individuals. Both aspects give people the security and the freedom needed to find out what we want to do and subsequently act in a self-directed way.

For Götz Werner, who died last week at the age of 78, universal basic income meant making work possible. He believed that universal basic income would provide security in times when people lose employment and when certain professions disappear or change radically. Thus, universal basic income would allow everyone to participate in society and have the freedom to act on their own initiative. Götz Werner also believed that universal basic income would account for the fact that there are quite a lot of activities that are not recognized as gainful employment, such as raising children or caring for relatives.

Since universal basic income would be granted to everyone without means testing or expectation of anything in return, it can only work if you believe in the good in people. This means that people will voluntarily play an active role in society and that people who do not need the money – because they receive sufficient income from gainful employment – will pass on the additional money in a socially meaningful way. Universal basic income only makes sense when you have the opinion, the attitude and the conviction that people can, and also want to, act in a meaningful way on their own responsibility – without external control, pressure or coercion. 

Our current social system is based on a different code: people have to prove that they are entitled to social benefits, and they are required to look for a job or accept work, otherwise they will be subject to sanctions. An expert opinion issued by the Scientific Advisory Council of the German Federal Ministry of Finance in February 2021 concludes that universal basic income at a living wage level cannot be implemented for lack of funding. Moreover, the Council concludes that people whose livelihood is already secured by a voluntary social service are no longer motivated to make some sort of contribution to society.

From my point of view, we cannot clearly predict today how universal basic income would affect our society and thus whether we can afford to believe in the good in people.

However, Götz Werner demonstrated with his lifetime achievement that people can and want to act as employees without pressure and control, on their own responsibility, and in a meaningful way. Without strict hierarchies, corporate targets or incentives through sales commissions, he succeeded in developing his company into Europe's market leader with 66,000 employees and a presence in 14 European countries. 

Götz Werner focused its corporate governance efforts on people, thus involving both customers and employees. He gave his employees confidence and thereby transferred responsibility. Götz believed that everyone was able to think as an entrepreneur – the trainee as well as the member of the management. He rejected any form of control. Whenever an employee asked him a question, he replied with a counterquestion in return; thus he did not release them from their own personal responsibility. He quoted both Goethe and Schiller to illustrate his idea of management, and found freedom of thought in their works. He changed a quote from Goethe’s play Faust from “Here I am Man: here, dare to be!” to “Here I am Man: here, dare to shop!” This slogan is familiar to every dm customer and illustrates how much Goetz was focused on the customer. 

In a nutshell: To me, Götz Werner and his successful take on corporate governance provided proof that man is good and wants to make a difference. Well, let’s follow a rather philanthropic stance at least in a corporate context!

Background information on the context: The principles of corporate governance by Götz Werner overlap to a great extent with the approaches of agile working and collegial leadership. For this reason, I am very much interested in corporate culture at dm. Because these approaches are reflected in the topics I address during my coaching sessions – when I support teams to assume more responsibility and to exhibit a larger degree of self-organization.

This text first appeared in my newsletter 'Innovation on Wednesday'. It is published every other Wednesday. For subscription click here


Further reading:

Book: Einkommen für alle [Income for all] – Götz Werner

Expert opinion no. 02/2021 on universal basic income, issued by the German Federal Ministry of Finance

Interview with Götz Werner – Karriereführer

Menschenkenntnis und Zutrauen macht gute Führungskräfte aus [Knowledge of human nature and confidence make good leaders] – Focus online

Mitarbeiter sind keine Kostenfaktoren [Employees are no cost factors] – Personalwirtschaft

Das Geheimnis guter Mitarbeiterführung: Vorbild, Wertschätzung und Vertrauen [The secret of good leadership: role model, appreciation and trust] – BVMW


Andrea SchmittInnovationstrainerinAm Mittelpfad 24aD 65520 Bad Camberg+49 64 34-905 997+49 175 5196446
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