That “Special Something” in ESOP Culture… And How to Build It Without Stock

Walk into an employee-owned company, one that actually acts like it, and you’ll feel it before you see it.

There’s a quiet hum of pride. A shared sense of responsibility. A tendency to ask “How can I help?” instead of “Is that my job?”

That’s not an accident. It’s ownership. And no, I don’t just mean equity on paper.

Ownership is Emotional

Research from the National Center for Employee Ownership (NCEO) shows that employee-owned companies outperform their peers in productivity, retention, and even resilience during economic downturns. But the real magic isn’t just in the financial stake, it’s in the psychological one.

Psychological ownership, a concept coined by Pierce, Kostova, and Dirks (2001), describes the feeling that “this is mine” even without legal ownership. It’s an internalized connection to the organization’s purpose and outcomes. When employees feel this way, they act differently. They speak up. They lean in. They care.

And while ESOPs (Employee Stock Ownership Plans) create the structure to make this feeling more likely, structure alone isn’t enough. I’ve seen ESOPs where culture is just a poster on the wall—and non-ESOPs where people move mountains together. So what’s the difference?

The Conditions for Ownership

Whether or not your employees hold shares, the feeling of ownership is built, or broken, by what the organization signals through its culture.

Here’s what employee-owners often experience that others don’t:

• Transparency. They know how the business is doing. Information isn’t hoarded at the top.

• Voice. Their input matters in decisions that affect them.

• Shared fate. Wins and losses ripple through the whole organization, not just leadership.

These cultural conditions create what author Dan Pink calls intrinsic motivation: autonomy, mastery, and purpose. And they fuel ownership behaviors far more than a stock plan ever could on its own.

You Don’t Have to Be an ESOP to Feel Like One

Let’s get this out of the way: Not every company should, or can, be an ESOP. It’s a complex legal structure that requires long-term commitment, financial strategy, and regulatory compliance. But the culture of employee ownership? That’s available to anyone willing to do the work.

Here’s where to start:

1. Be ruthlessly transparent.

Open up your metrics. Share the “why” behind decisions. Ownership thrives when people understand how their work contributes to the bigger picture.

Transparency isn’t a one-time town hall. It’s a daily practice. HBR’s “Culture of Candor” highlights how open communication fuels accountability, innovation, and trust. In employee-owned companies, financials and key metrics are explained fully, accurately, and openly. Employees know how the company is doing, and more importantly, why it matters.

Real-life example: At New Belgium Brewing (an ESOP), financials are shared with all staff. Each department has a dashboard, and teams participate in open-book meetings. That transparency drives smarter decisions on the floor, from inventory control to customer service.

How to replicate it: Share quarterly revenue and margin trends with your team. Explain not just what’s happening, but how their work contributes. People don’t need all the data—they need relevant data to feel connected.

2. Create real agency, not performative “voice.”

Move beyond suggestion boxes. Build systems where employee voice shapes decisions, especially on issues they’re closest to.

Edgar Schein’s work emphasizes that psychological safety, where people can speak up without fear, is foundational to a strong culture. In true ownership cultures, employees shape decisions, not just give feedback into a void. Without agency, “engagement” is just decoration.

Real-life example: At King Arthur Baking Company (an ESOP), employees sit on cross-functional councils that directly shape business strategy. When the company rebranded, frontline staff helped choose the new logo—because ownership meant they had a stake in how the company showed up.

How to replicate it: Give employees decision rights over things that affect their day-to-day. Let them redesign workflows, test new tools, or vote on team norms. Don’t just ask for ideas—build systems where ideas turn into action.

3. Recognize ownership behaviors, not just outcomes.

If you want ownership, recognize when people act like owners—even if the outcome isn’t perfect. Catch people doing the right thing and celebrate it.

Gallup’s research consistently shows that recognition is one of the most powerful drivers of engagement. But recognition doesn’t just mean results, it means celebrating the behaviors that build a culture of ownership: initiative, accountability, collaboration, curiosity.

Real-life example: At Publix Super Markets (an employee-owned company), managers regularly spotlight employees who solve problems without being asked, like redesigning store layouts for better customer flow or improving food waste systems. It’s not just the what, it’s the how that’s celebrated.

How to replicate it: Make “thinking like an owner” a public part of your recognition program. Call out team members who share new ideas, mentor others, or fix broken processes without fanfare. Culture grows in the light.

4. Connect roles to purpose… loudly and often.

Every job, from accounting to assembly, needs a clear line of sight to the mission. Make that connection visible—and repeat it often.

Simon Sinek’s core thesis is that people don’t buy what you do; they buy why you do it. That applies internally too. Ownership cultures give every employee a clear line of sight to purpose. People want to know: How does my work make a difference?

Real-life example: At Eileen Fisher (a B Corp and partial ESOP), employees at all levels are brought into sustainability planning sessions, reinforcing that whether you’re in design or shipping, your work furthers the company’s mission to reduce environmental harm.

How to replicate it: During onboarding, connect each role to the company’s broader mission. Use all-hands meetings to tell real stories of impact, from the frontlines to the boardroom. Repeat often. People forget purpose when you stop saying it out loud.

Ownership is a Practice

In the end, the most powerful cultures aren’t built on perks or policies. They’re built on shared belief—and shared responsibility.

Employee ownership isn’t just a legal structure. It’s a mindset. One that says:
> We belong here.
> We build this together.
> We care about what we create.

You don’t need a stock certificate to create that feeling.
> You need clarity.
> You need trust.
> And you need leaders willing to treat culture not as fluff—but as infrastructure.

Because in the long run, it’s not just a “special something.”
It’s your competitive advantage.

Want help building a culture of ownership? Let’s talk.