Corporate Governance as Privately-Ordered Public Policy: A Proposal
Lynn Stout and
Sergio Gramitto Ricci
No x8jmq_v1, LawArchive from Center for Open Science
Abstract:
In this Article, we show how our society can use corporate governance shifts to address, if not entirely resolve, a number of currently pressing social and economic problems. These problems include: rising income inequality; demographic disparities in wealth and equity ownership; increasing poverty and income insecurity; a need for greater innovation and investment in solving problems like disease and climate change; the “externalization” of many costs of corporate activity onto third parties such as customers, employees, creditors, and the broader society; the corrosive influence of corporate money in politics; and discontent and loss of trust in the capitalist system among a large and growing segment of the population. We demonstrate how, to a very significant extent, these problems can be traced to the way shares in business corporations are currently owned, traded, and voted. We also offer a plausible plan for shifting the structure of share ownership, trading, and voting to create a more democratic and sustainable capitalism that allows business corporations to better serve humanity. Our proposal, which envisions developing a new form of institutional shareholder, does not rely either on market forces or government interventions. Rather, it relies on voluntary cooperation and the private ordering of free individuals using modern information technologies. It operates to reduce inequalities not only in wealth and income but also in influence over business corporations.
Date: 2017-12-21
References: Add references at CitEc
Citations:
Downloads: (external link)
https://osf.io/download/5a3bdd4f5a9350000ea5e3f7/
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:osf:lawarc:x8jmq_v1
DOI: 10.31219/osf.io/x8jmq_v1
Access Statistics for this paper
More papers in LawArchive from Center for Open Science
Bibliographic data for series maintained by OSF ().