Employee Stock Ownership Plans (ESOPs) are programs that provide a company's workforce with an ownership interest in the company. Through these plans, employees can acquire shares of the company, often at no upfront cost, which can motivate them to work harder and align their interests with the company's success. ESOPs are often used as a corporate finance strategy and can serve as a tool for employee retention and motivation. They can also provide tax benefits for both the company and the employees, making them an attractive option for businesses looking to enhance employee engagement and loyalty.