Large corporations in America shape critical societal issues, including racial equity, women’s rights, LGBTQ+ rights, and climate change. They are major political players, sometimes aligning with or opposing government initiatives. For instance, corporations have advocated for gun regulation after mass shootings and clashed with politicians over legislation, as Disney did with Florida over the “Don’t Say Gay” bill. Corporations also take on quasi-governmental roles when the government is inactive, such as extending health benefits to same-sex couples or launching initiatives for marginalized communities. I call this involvement in public affairs—through political speech or providing traditional government services—“corporate governing.”
Opinions vary on corporations as agents of socioeconomic change. Many politically engaged individuals encourage corporations to partner with social activists. However, ac- ademics, policymakers, and politicians are divided on this role. One 2024 Republican presidential candidate opposes corporate governing, and red states have passed laws against “woke capitalism.”
This Article contributes to the literature by mapping corporate reforms in the socio- economic sphere and providing legal and policy frameworks for corporate governing. It analyzes the conduct under current corporate laws and evaluates its multifaceted normative merits: Is there a business case for corporate governing? Is it strategically wise for corporations? Does it help social advocacy and society at large? Does it undermine government and democratic institutions? This Article also assesses corporate governing’s promises and risks from both corporate and societal perspectives, highlighting two risks. First, corporate governing may fail in areas where corporations have conflicting interests, like antitrust, tax, labor, privacy, financial, and corporate reform. Second, with corporations playing a greater role in policymaking, citizens may rely less on traditional politics, risking democratic values and institutions. Addressing this requires efforts from citizens, civil society, and politicians—corporate governance can help but cannot be the driving force.