Corporations, Society, and the Public Good

Catalog description

The dominant model of economic activity at the enterprise level is one where governance rights (who makes the decisions) and economic rights (who reaps the value created by the enterprise) are concentrated in the hands of shareholders – largely outside investors that have capitalized the company through the purchase of equity stakes. While this model has led to tremendous economic growth, it has also contributed to structural issues, such as the concentration of wealth and power, the prioritization of profits at the expense of other goals, the externalization of environmental costs, and the consideration of workers as a liability rather than an asset. Alternative forms of structuring economic activity have long been present in the economy, from consumer cooperatives to nonprofit enterprises. As crises mount – some exacerbated by the primacy of shareholders – there is growing emphasis on the need for these alternatives, and successful examples are proliferating and becoming more familiar, from Patagonia to Bosch to Novo Nordisk. Looking at why enterprises are organized in a certain way provides a lens through which we can explore who ought to have a say over productive activity, how externalities are taken into account, and how we should allocate the economic value that is created by enterprises. The course provides an introduction to alternative ownership models – a broad set of enterprise structures that move beyond shareholder primacy to prioritize non-shareholder centric goals ranging from ensuring long-term purpose, to equitable wealth distribution and economic democracy. Through a combination of readings, case studies, lectures, class discussion, and applied assignments, this course aims to demystify and normalize the alternative ownership models and will equip students with the conceptual frameworks and practical understanding needed to evaluate, design, and…