Political Economy of the Firm: Authority, Governance, and Economic Democracy

This book provides a "political economy" vision of firms that views workers as actors of the firm and argues that managerial authority must be based on its acceptance by workers for it to be legitimate. It calls for the democratization of corporate governance and joins the many voices questioning shareholder primacy.

Format: Hardback
Length: 136 pages
Publication date: 12 December 2023
Publisher: Taylor & Francis Ltd

A fresh perspective on the firm is required to comprehend its essence and practical operations, as well as the difficulties posed by digital platform firms. This book presents a "political economy" view of firms, defining them as economic collective ventures organized through political means.

In this regard, the book offers an authority-based conception of the firm, providing a theoretical foundation for democratic governance. It emphasizes the importance of viewing workers as active agents of the firm rather than passive recipients of capital, recognizing that authority is a non-coercive form of power.

The book delves into the dynamics of authority and subordination from the perspective of workers, arguing that when workers accept authority, it is because they perceive it as fostering mutually beneficial cooperation among individuals with diverse interests. As managerial authority is contingent upon worker acceptance, it necessitates legitimacy.

The book demonstrates that legitimacy encompasses the democratization of corporate governance within the framework of "pluralistic companies," aligning with the growing chorus that challenges shareholder primacy.

This book will hold significant appeal to researchers and students in economics, law, labor professionals, employers, unions, policymakers, and anyone passionate about economic democracy.

Weight: 430g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032161426