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Corporate Purpose Needs Democracy

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  • Gerald F. Davis

Abstract

The British Academy proposes that some of the manifest failures of shareholder capitalism can be addressed by requiring corporations to declare a purpose – a profitable solution to the problems of people and planet that does not cause additional problems – and creating a set of supporting mechanisms to ensure the pursuit of purpose. Shareholder capitalism has a lot to answer for, arguably including the opioid and obesity epidemics, the hazards to people and democracy posed by profit‐driven tech firms, and catastrophic climate change. Moreover, the forces that orient public corporations toward share price are powerful and pervasive, while public corporations are disappearing in the USA and the UK under the weight of outside pressures. If we want the corporations that remain to behave themselves, the surest path is more democracy: greater worker control from below, and more effective state regulation from above.

Suggested Citation

  • Gerald F. Davis, 2021. "Corporate Purpose Needs Democracy," Journal of Management Studies, Wiley Blackwell, vol. 58(3), pages 902-913, May.
    • Handle: RePEc:bla:jomstd:v:58:y:2021:i:3:p:902-913
    DOI: 10.1111/joms.12659
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    References listed on IDEAS

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    1. Celik, Aylin & Kalka, Regine, "undated". "Die Abgrenzung, Eingliederung und Umsetzung des Corporate Purpose im Marketing [The Delimitation, Integration and Implementation of the Corporate Purpose in Marketing]," Duesseldorf Working Papers in Applied Management and Economics 58, Duesseldorf University of Applied Sciences.
    2. Emilie Bourlier-Bargues & Bertrand Valiorgue & Nicolas Spatola, 2024. "Relever les défis de la transition climatique : l'enjeu des biais cognitifs dans les prises de décision des conseils d'administration," Post-Print hal-04580484, HAL.
    3. Emilie Bourlier-Bargues & Jean-Pascal Gond & Bertrand Valiorgue, 2022. "Fast and spurious: How executives capture governance structures to prevent cooperativization," Post-Print hal-03828145, HAL.
    4. Donald F. Kuratko & David B. Audretsch, 2022. "The future of entrepreneurship: the few or the many?," Small Business Economics, Springer, vol. 59(1), pages 269-278, June.
    5. Robert Hurley, 2023. "An Organizational Capacity for Trustworthiness: A Dynamic Routines Perspective," Journal of Business Ethics, Springer, vol. 188(3), pages 589-601, December.
    6. Diego Arias & Xabier Barriola & Cristian R. Loza Adaui, 2024. "Corporate purpose and early disaster response: Providing evidence of dynamic materiality?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4598-4612, July.
    7. Gregor Bouville & Jocelyne Barreau, 2021. "Les Utopies Du Travail Et Le Management : Du 19e Au 21e Siecles," Post-Print halshs-03403834, HAL.
    8. Matthijs Bal & Andy Brookes, 2022. "How Sustainable Is Human Resource Management Really? An Argument for Radical Sustainability," Sustainability, MDPI, vol. 14(7), pages 1-14, April.

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