Democracy, citizenship, and corporate governance reform: How to deal with the internationalization of corporate activity

Abstract

Commercial companies are increasingly being recognized as agents of societal governance operating alongside the public authorities in their traditional role as governance bodies. In addition, companies are claiming to be ‘corporate citizens’ in the way they deal with their environmental, employment and social/ethical responsibilities. Given the fact that large corporations are now heavily internationalized in their operational characteristics – with branches, subsidiaries, affiliates and extended supply chains operating in multiple jurisdictions – can such organizations be brought into a democratic register? Citizenship and democracy are conventionally associated with a territorial state, national sovereignty and jurisdictional independence. So, how can internationalized companies be subject to democratic forms of governance? An added problem arises with platform companies and blockchain organized digital currency providers whose operations transcend national borders from the start. This contribution discusses the issues of and provides a way for considering corporate democracy afresh in these rapidly evolving contexts.