Daewoo's Collapse and GM's Renewal: Employee Voice and the Counseling Function as a Mechanism of Corporate Governance
Singapore American School, 40 Woodlands Street 41, Singapore 738547
Abstract
This paper explores how the counseling function, which is defined as organizational processes whereby employee issues and risk signals are raised and acted upon, can also act as a tool of corporate governance. Through a synthesis and examination of relevant literature on topics such as psychological safety, organizational silence, and Employee Assistance Programs (EAPs), this paper analyzes and compares two corporate giants (Daewoo and General Motors) and how they responded to employee voice before and during times of crisis. The cases show that the suppression of employee feedback can be destructive and lead to organizational failure, while embedding a structured feedback mechanism can have numerous positive benefits and boost company resilience. This paper concludes that the counseling function should be introduced and formalized within broader corporate governance frameworks because the system is an effective risk management tool.
Keywords
Keywords: Employee Voice; Corporate Crisis; Employee Assistance Programs; Corporate Governance
Introduction
Corporate failures are often analyzed in terms of issues on the balance sheet: too much debt, falling sales, margin erosion, etc. However, research also shows that even before these issues emerge, there are often many employees who are aware of the trouble ahead.
Conclusion
An effective counseling function, which enhances employee morale and enables early risk detection, should be understood as an essential component of corporate governance and risk amelioration. The Daewoo and GM cases illustrate how suppressing employee voice can be destructive, while structured feedback mechanisms boost organizational resilience.
How to Cite
Kim, Seoyoon. Daewoo's Collapse and GM's Renewal: Employee Voice and the Counseling Function as a Mechanism of Corporate Governance. Journal of Youth Impact. June 2026; 1(Issue 2). DOI: https://doi.org/10.66245/jyi.v1.i2.013