The basic question I want to ask is: can the exercise of private property rights abridge fundamental norms of democratic decision-making? And, under what conditions can it do so? To the extent that we view democratic decision making as required by justice, the issue is whether there is a deep tension between certain ways of exercising the rights of private property and that part of social justice that is characterized by democracy. To the extent that this tension holds, I will (...) argue that commitment to democratic norms implies that private capitalist firms must cooperate with a democratic assembly and government in the pursuit of the aims of a democratic assembly even when this implies some diminution of the profits of the firms. The cooperation I have in mind goes beyond the norm of faithful compliance with the law. To be sure, there are limits to this requirement as we will see in the later part of the paper. To the extent that private capitalist firms fail to do this and partially undermine the pursuit of the aims of a democratic assembly, they act in a way that is incompatible with fundamental norms of democratic governance. (shrink)

Although McMahon offers a potentially valuable extension of Joseph Raz's conceptualization of authority by distinguishing three different kinds of authority, this paper argues, first, that his account of the conditions and considerations that would justify managerial authority is problematic because it relies on a conception of reasons for action that excludes precisely the kind of rationality that plays an important role in the␣explanation and justification of authority in economic␣organization. This paper explains, second, why McMahon's thesis of the justificatory similarity of (...) authority in governments and nongovernmental organizations can also be seen to hold for corporate governance of publicly owned firms more specifically. Finally, this paper raises some critical objections against McMahon's presumption of democratic governance in governments and NGO's alike. The thrust of these objections is that democratic corporate governance does not make sense in the publicly owned firms because: it will not produce results that are fair or welfare maximizing, and it will undermine the legitimacy of managerial authority in such firms. (shrink)