Freedom, Participation and Corporations: The Issue of Corporate (Economic) Democracy

Abstract

The freedom (or its lack) of employees within large corporations has been the topic of considerable attention. Various discussions have invoked utilitarian appeals, social contract arguments, rights to meaningful jobs and analogies between corporations and state government. After briefly reviewing and rejecting these approaches, this paper contends that the legitimate exercise of corporate authority requires its accountability to a relevant group. It is then argued that the most relevant group are the employees over whom such power is exercised and that the form such accountability must take is that of recognizing the right of employees to participate in corporate decisions and actions. Recognition of this right to participation, it is contended, constitutes respect for the freedom of corporate employees.