Forum on Corporations in the Crosshairs: From Reform to Redesign
Opening reflections for a GTI forum
In Success and Luck, Robert Frank underscores the role of "dumb luck" in determining winners and losers, debunking the cherished myth of meritocracy. But how can we get the fortunate to share the spoils?
The ascent of transnational corporations poses fundamental questions of accountability, regulation, and democratic process. Although their footprints cross continents, TNCs still operate under legal licenses granted by national or state authority. In order to rectify the incongruence between global impacts and state control, and to align corporate behavior with social and ecological purpose, we propose a World Corporate Charter Organization. By defining the obligations of TNCs, global charters would balance the current emphasis of international institutions, such as the World Trade Organization, on TNC rights. With public concern about corporate power on the rise, the moment is propitious for establishing transnational governance of transnational corporations, a precondition for attaining just and sustainable societies.
Allen White traces the genesis, growth, and evolution of the modern corporation and its role in wealth creation. He outlines a vision for the future of the corporation that reflects the core values of human solidarity, ecological sustainability, and quality of life. He then explores the way forward to realize such a values-based shift in the design and operation of the corporation.