Abstract

Jeffrey Moriarty argues for a return to a robust notion of stakeholder theory involving direct procedural voting by stakeholders. He asserts that such voting offers the best possible chance of restraining firm behavior and taking into account all stakeholder interests. I argue, however, that Moriarty proceeds with an overly narrow conception of democracy, ignoring problems that arise from procedural voting. Specifically, paradoxes in voting procedures, the tyranny of the majority, and the inefficacy of representation advantage well-organized and moneyed interests. A stakeholder democracy may in fact undermine the very interests that Moriarty seeks to promote.