Just Reproduction, Production and Consumption

Corporate governance and promotion

What's the problem?

The legal and tax framework conditions of our economy are currently geared towards so-called shareholder-oriented companies (especially listed corporations). These companies use profits primarily for sales-increasing →investments and dividend payments. Thus they contribute both to economic growth (due to the high level of investment) and the increasing inequality (as corporate ownership is very unevenly distributed). In contrast, the current framework conditions make the work of socially and ecologically active enterprises harder, since they are confronted with multiple legal and financial disadvantages.

What's the measure?

The economy-politics should be aimed at improving the position of public service enterprises and providing incentives for all enterprises to operate in the public interest, for example by:

How can the implementation look like?

  • Reform of the Stock Corporation Act, which abolishes the obligation to maximise profits and instead enshrines the welfare of those affected and the preservation of common goods
  • Prohibition of Stock cooperations
  • A separate or extended legal form for democratic, participatory, not primarily profit-oriented companies, which incorporates the internal logic of these forms of enterprise and at the same time limits the bureaucratic burden
  • Obligatory orientation towards social, ecological and regional criteria and preferences for democratic and participatory companies when awarding public contracts, real estate and land (selection, for example, using a uniform reporting system for the criteria above)
  • Democratic control of companies above a certain size

How can climate change be counteracted and how can economic conditions be created that support effective climate protection measures?

This measure ensures that climate-friendly companies and business models are promoted and climate-damaging ventures are made more difficult. Reduction of the competitive principle and other aspects of the constraint to grow.

How quickly can the measure be implemented?

Step by step from now on.

References to other measures

The measure can go hand in hand with all measures but above all with the promotion of commons and a solidary society ({translationof orig_page="Förderung von Commons und einer solidarischen Gesellschaft" translation_lang="en" translation_page=""}) and an alternative solidary society.

Further literature and sources