Democracy and Infomediaries
20 Pages Posted: 26 Aug 2001
Date Written: September 16, 2001
We can improve our political and economic systems by redesigning our use of informational intermediaries (infomediaries). Examples of infomediaries are political parties, the news media, proxy voting advisory firms, and auditors. An infomediary's source of funding influences the information it produces - "follow the money". Political campaign finance reform is one approach to redesigning our infomediary systems. This paper proposes another approach: starting a few companies with a new corporate bylaw structure designed to enhance management accountability to shareowners. If this system proves effective, it can spread to existing corporations and then to the political arena.
Keywords: proxy voting, monitoring, corporate governance, corporate democracy
JEL Classification: D72, G34, K22
Suggested Citation: Suggested Citation