PODER

A NEW PARADIGM

A THEORY OF CHANGE FOR ACHIEVING DEMOCRATIC ECONOMIES

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Inputs

• Commitment
• Coordination
• Creativity
• Curiosity
• Economic resources
• Human resources
• Interest
• Participation
• Purpose
 


Activities

• Building community
• Educating
• Engagement and advocacy
• Experimenting with new models
• Learning
• Research
• Social entrepreneurship
• Socially responsible investing
• Strategic litigation
 


Outputs

What are you doing to help society democratize the economy? Tell us about the contribution of your business, network, organization, university, etc. @ProjectPODER, #NewParadigm

• Communities of practice
• Community-based economies
• Innovative business models
• Multi-stakeholder partnerships
• New knowledge about democratic economies
• New rules of the game
• Strong institutions for corporate accountability and transparency
• Triple bottom-line investment
• Updated pedagogical approaches
 


Outcomes

CIVIL SOCIETY AS ACCOUNTABILITY GUARANTOR
– Civil society actors are organized around an objective of guaranteeing corporate accountability and transparency;
– Civil society actors are strong, numerous, informed;
– Civil society actors think creatively and strategically, effectively using existing mechanisms and possibly creating new mechanisms for ensuring corporate accountability and transparency.

STRENGTHENED DEMOCRACY AND RULE OF LAW
– Civil society actors have official status to function as watchdogs against state capture by the private sector;
– There is transparency about the overlap between the public and private sectors, including how businesses and investors affect public decision-making;
– Business transparency is mandated and enforced by law, and governments compel disclosure of companies’ social and environmental liabilities;
– Laws require businesses to respect human rights and adhere to standards of corporate accountability;
– Enforcement mechanisms provide strong incentives for compliance with corporate accountability standards.

RESPONSIBLE FINANCIAL INDUSTRY
– Regulations curb socially harmful speculation and regulators enforce better risk management;
– Investors adopt and adhere to the highest standards of transparency with regards to their investment activities;
– Investors abide by the highest due diligence standards and commit to protecting and respecting human rights, and remedying human rights violations for which they are responsible.

RESPONSIBLE BUSINESS
– Business reporting in the public interest is standardized, accessible, comprehensive, and regular;
– Businesses protect and respect human rights, and remedy human rights violations for which they are responsible;
– Corporate Social Responsibility entails obligatory commitments to norms of transparency and accountability;
– Businesses champion inclusiveness and adhere to the triple bottom-line: environmental, social, and financial value.

CORPORATE GOVERNANCE IN THE STAKEHOLDER ERA
– The shareholder primacy norm is replaced by a stakeholder governance norm;
– Affected stakeholders exercise their fair share of responsibility over decisions related to environmental, social, and governance factors.
 


Impact: Democratic Economies

CIVIL SOCIETY AS ACCOUNTABILITY GUARANTOR
– Citizens hold businesses accountable to higher standards for human rights, labor, and environmental compliance.

STRENGTHENED DEMOCRACY AND RULE OF LAW
– Businesses answer to the state and to citizens, and the state answers to citizens;
– The outer limits of free markets are defined as respect for human rights and protection of the environment.

SUSTAINABLE FINANCIAL INDUSTRY
– Improved regulatory framework, greater transparency, and more responsibility in the financial sector serve the public interest.

SUSTAINABLE BUSINESS
– Improved business transparency and accountability serves the public interest.

CORPORATE GOVERNANCE IN THE STAKEHOLDER ERA
– Companies are governed by stakeholders, not stockholders.