Is the right of capital sacred? Questioning the creation of market democracy through "shareholder primacy"

Author: Marjorie Kelly
Publisher:
Publication Date: 2003-01-01
Features: Inequality, corporate subsidies, and industrial pollution are all symptoms of economic sickness—like hot and cold swings. The author of this book, Marjorie Kelly, argues that the root cause of these symptoms lies in the "shareholder advantage": the purpose of corporate operations is to generate profits for shareholders, regardless of who is paying the costs. We have long taken shareholder advantage for granted as the most normal of market rules, just as our ancestors once believed monarchy was the most normal form of government. —Recommended by Beijing Youth Weekly
In this book, Kelly clearly explains that shareholder advantage is actually an irrational and abnormal form of corporate aristocracy. In traditional models, companies are parts of shareholders' property, and they must be absolutely loyal to shareholders. Kelly, however, argues that a new model needs to be rebuilt, redefining the company as a human community that should be accountable to both insiders and outsiders. We should question the rationality of an economic system that grants unreasonable privileges to a small number of the wealthy. At the same time, she clearly explains the foundation of corporate organization—the "6 economic aristocracy principles." These principles should not have been accepted by modern democratic regimes, yet modern economic systems accepted them without question. For this, the author proposes "6 corresponding economic democracy principles." She advocates constructing economic democracy in two stages: first, raising awareness of wealth discrimination issues; second, focusing on structural reforms of corporate organizations.
This book is filled with fresh ideas and rich imagination, and its views are unlikely to be accepted by those economists and entrepreneurs who adhere to conventional wisdom. However, the style of the book is like a relaxed and friendly conversation. As the author narrates, new ideas are sparked, possible paths are explored, and new perspectives are provided for creating true market democracy.