Entrepreneurs and Democracy A Political Theory of Corporate Governance

What legitimizes power within a corporation? This question is of concern to the millions of citizens whose lives depend upon the fate of business corporations. The rules, institutions and practices of corporate governance define the limits of the power to direct, and determine under what conditions this power is acceptable. Effective corporate governance has long been defined in terms of economic performance. More recent studies have focused on philosophical, political and historical analyses. Entrepreneurs and Democracy unites these strands of inquiry - the legitimacy of power, the evolution of multiple forms of governance and the economics of performance - and proposes a framework for future study. It explores the opposing tensions of entrepreneurial force and social fragmentation that form the basis of legitimate corporate governance in modern societies. In doing so, it identifies a common logic that links both the democratization of corporate governance and the growth of economic performance.

List of figures and tables; Introduction; Part I. Establishing the Ideological Foundations: The Contribution of Liberal Political Philosophy: 1. The invisible crown: political foundations of the legitimate entrepreneur; 2. Society fragmented and the role of democracy; Part II. Understanding How Corporate Governance Evolves: The Contribution of History: 3. Familial governance (c.1800–1920): economic enfranchisement and the founder as entrepreneur; 4. Managerial governance (c.1920–70): separation of powers and management as the entrepreneur; 5. Post managerial governance (from c.1970): ownership of the large corporation reaches unprecedented mass and fragments into multiple poles; 6. Interpreting public governance: representation and debate signify a new step towards democratization; Part III. Corporate Governance and Performance: 7. The pure economic model of corporate governance: an analysis; 8. Critique of the pure economic model of corporate governance; 9. Economic performance, corporate governance, and the fragmentation of ownership; Epilogue.

What legitimizes power within a corporation? This question is of concern to the millions of citizens whose lives depend upon the fate of business corporations. Entrepreneurs and Democracy explores the opposing tensions of entrepreneurial force and social fragmentation that form the basis of legitimate corporate governance in modern societies.