The corporate social assessment: making public purpose pay

Abstract

Corporations can be powerful engines of economic prosperity, but also for the public good more broadly conceived. But they need to be properly incentivized to fulfil these missions. We propose an innovative plan called the Corporate Social Assessment (CSA). Every four years, a randomly selected Citizens’ Assembly will meet to decide a grading scheme for assessing companies’ conduct. At the end of the cycle, a professional assessment body will grade the companies and rank them. The ranking will be the basis for subsidies to higher-tier companies, to be paid out of a fund to which all companies will contribute, to create a race to the top which financially rewards corporations taking public concerns seriously. The CSA radicalizes the corporate license to operate. To retain legitimacy in the eyes of wider segments of society, the proposal aims to democratize the way we hold corporations accountable for the power they wield.