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The Business Corporation as a Political Actor

Project description

Companies acting as governments: What would happen?

Imagine a shadowy economic and political system controlled by corporations. That is a corporatocracy, in which corporate interests instead of citizens determine what governments do. Business corporations today exercise political power – both internally (towards employees) and externally (towards state, consumers and other actors). So what about this political role? The EU-funded CORPORATOCRACY will answer this question. It will also address the philosophical question of whether such corporate political power, if it exists, can be legitimised. It will focus on three conditions for legitimate ruling: respect of rule of law and human rights, democratic mechanisms of decision-making and requirements of social justice. Can these be applied to corporations? Special focus will be placed on transnational corporations. The findings of this 5-year project will help clarify corporations’ role in solving urgent social challenges.

Objective

Business corporations exercise political power, both internally (towards their employees) and externally (towards states, consumers and others). However, corporations have often fallen from the radar in the dominant theories of legitimacy in political philosophy/political theory, i.e. the social contract tradition. The latter has been wedded since the Westphalian era to an individual/state dualism in which there is no evident place for intermediate associations. The dominance of economic theories, understanding corporations as merely private, commercial actors operating in competitive markets, has reinforced this neglect of corporations political role. This neglect is untenable in the modern, globalized economy. For better or worse, contemporary societies must be interpreted as corporatocracies: societies in which corporations (increasingly) exercise political power. This raises the philosophical question of whether and if so, how such power can be legitimated, and hence whether corporations can be understood as part of a contemporary, updated, social contract theory. The aim of this proposal is to determine the conditions that underpin the legitimacy of corporate political power.

The project studies this question by focusing on three legitimacy conditions: the exercise of authority should be bound to (1) respect for the rule of law and fundamental rights of citizens, (2) democratic mechanisms of decision-making, and (3) requirements of social justice. It pays special attention to the role of transnational corporations, and to the interaction between the corporations political role and its economic functions. The scientific urgency of the project lies in the need to have a better normative understanding of the role of the corporation in the 21st century political order. Its social urgency lies in clarifying if and how corporations can be forces which strengthen societies capacities to solve urgent social challenges.

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Keywords

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Programme(s)

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Topic(s)

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Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

ERC-COG - Consolidator Grant

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Call for proposal

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(opens in new window) ERC-2019-COG

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Host institution

UNIVERSITEIT UTRECHT
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 2 000 000,00
Address
HEIDELBERGLAAN 8
3584 CS Utrecht
Netherlands

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Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 2 000 000,00

Beneficiaries (1)

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