The firm as a subversive theoretical object

Abstract

The aim of the article is to propose a theory of the firm based on authority. Drawing on Hannah Arendt and Joseph Raz, we define authority and question its relationship with autonomy. We show that authority, a non-coercive power, is absent from (neo)liberal theories of the firm. A theory of the firm based on authority is developed, in which workers are seen as actors in the firm, not passive subjects of capital. This conception of the condition of workers together with the concept of authority leads to questioning the legitimacy of authority in firms. Finally, we show that this legitimacy lies not in ownership but in the democratisation of corporate governance.