Lynn A. Stout - 29 Jan

Praise for Citizen Capitalism

This book offers a transformative plan to make corporate ownership and governance more inclusive. It attempts to harness corporate power and resources in the tackling of the challenges of poverty and empowerment. At the heart of the book is the relationship between corporations and society. Through their proposal, the authors strive for a synergic relationship benefiting society. With clinical precision and an extraordinary grasp of history, the book offers a brilliant diagnosis of critical issues facing the world in the field of corporate governance. This is an important and valuable book. It reminds us that the only legitimate end of corporate governance is the well-being of society.

Muna Ndulo, Professor of Law; Elizabeth and Arthur Reich Director, Leo and Arvilla Berger International Legal Studies Program; and Director, Institute for African Development, Cornell University

Corporationslike governmentsplay an essential role in the lives of every American. But most Americans have an extremely limited ability to influence corporate decision-making, and we all live with the consequences. Stout, Gramitto, and Belinfanti offer a bold and creative alternative: What if we had a tool that gave every American a say in how corporations are runlike a superpowered pension fund that made corporations accountable to more than the bottom line? This is a powerful and timely idea, and Citizen Capitalism makes the case extraordinarily well.

Deborah N. Archer, Associate Professor of Clinical Law, New York University School of Law

The very bold plan to democratize corporate governance detailed by Stout, Gramitto, and Belinfanti in Citizen Capitalism is sure to be controversial in some circles, but it will also catalyze long-overdue discussions about the role of business in our society. Read this book.

Alice Korngold, Author of A Better World, Inc., and President and CEO, Korngold Consulting, LLC Praise for Citizen Capitalism

This book offers a transformative plan to make corporate ownership and governance more inclusive. It attempts to harness corporate power and resources in the tackling of the challenges of poverty and empowerment. At the heart of the book is the relationship between corporations and society. Through their proposal, the authors strive for a synergic relationship benefiting society. With clinical precision and an extraordinary grasp of history, the book offers a brilliant diagnosis of critical issues facing the world in the field of corporate governance. This is an important and valuable book. It reminds us that the only legitimate end of corporate governance is the well-being of society.

Muna Ndulo, Professor of Law; Elizabeth and Arthur Reich Director, Leo and Arvilla Berger International Legal Studies Program; and Director, Institute for African Development, Cornell University

Corporationslike governmentsplay an essential role in the lives of every American. But most Americans have an extremely limited ability to influence corporate decision-making, and we all live with the consequences. Stout, Gramitto, and Belinfanti offer a bold and creative alternative: What if we had a tool that gave every American a say in how corporations are runlike a superpowered pension fund that made corporations accountable to more than the bottom line? This is a powerful and timely idea, and Citizen Capitalism makes the case extraordinarily well.

Deborah N. Archer, Associate Professor of Clinical Law, New York University School of Law

The very bold plan to democratize corporate governance detailed by Stout, Gramitto, and Belinfanti in Citizen Capitalism is sure to be controversial in some circles, but it will also catalyze long-overdue discussions about the role of business in our society. Read this book.

Alice Korngold, Author of A Better World, Inc., and President and CEO, Korngold Consulting, LLC

Citizen Capitalism

Other Books by Lynn Stout

The Shareholder Value Myth Cultivating Conscience

(Princeton University Press, 2010, 978-0691-13995-1)

How a Universal Fund Can Provide Influence and Income to All

Lynn Stout

Sergio Gramitto

Tamara Belinfanti

Citizen Capitalism

Copyright 2019 by Lynn Stout, Sergio Gramitto, and Tamara Belinfanti All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher, addressed Attention: Permissions Coordinator, at the address below.

Ordering information for print editions

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Individual sales. Berrett-Koehler publications are available through most bookstores. They can also be ordered directly from Berrett-Koehler: Tel: (800) 929-2929; Fax: (802) 864-7626; www.bkconnection.com Orders for college textbook/course adoption use. Please contact BerrettKoehler: Tel: (800) 929-2929; Fax: (802) 864-7626.

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First Edition

Paperback print edition ISBN 978-1-5230-9565-0
PDF e-book ISBN 978-1-5230-9566-7
IDPF e-book ISBN 978-1-5230-9567-4
Digital audio ISBN 978-1-5230-9564-3

2018-1

Interior design and production: Dovetail Publishing Services
Cover design: M.80 Design, Wes Youssi
Cover illustration: Shutterstock.com

To all our children

In Memoriam

Lynn Stout

W E ARE NOT UNTETHERED IDEALISTS. With a combined experience of more than sixty years in corporate governance as lawyers and scholars, we understand that business corporations provide enormous value in many forms, including salaries, employee benefits, health care, useful innovations, tax revenues, and philanthropic donations. Yet at the same time, we know that corporate behavior can have negative repercussions, such as environmental pollution, unfair labor practices, and gender pay gaps, to name a few.

These results are inextricably linked to the underlying nature of todays corporate governance system, which has been dominated by a myopic focus on short-term financial results at the expense of long-term performance. This in turn results in a vicious cycle, which includes reducing expenditures on research and development; decisions that harm employees, customers, and communities; and actions that on the face of it seem reckless and socially irresponsible. In short, given the historical norm of shareholder value and the nature in which shares are often voted, the corporate sectors potential for addressing broader economic, social, and political problems has not been optimized.