Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 9

The Colorado Symphony Orchestra (CSO) was formed after the Denver Symphony was no longer financially viable. CSOs corporate charter requires that it cannot have an operating deficit in any year. Revenues, donations, grants, and other income must equal or exceed operating expenses. CSO balances its budget each year by adjusting the musicians' salaries. For example, in 1999 the musicians were not paid for the last 2 weeks of the year.
CSO's board of directors and executive management committees are composed of one-third each of musicians, full-time CSO staff, and community supporters of the CSO.
In most organizations, it is unusual for labor to have representation on the board of directors and management committees. Explain why you would expect musicians to have seats on the CSO board and management committees.