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Would democracy works in a corporation? Shouldn't CEO be elected by all the staff instead of the board of directors?

If we assume individuals are rational and therefore by way of election, we will have legitimacy for the elected leaders who are then presumably be doing what would serve as the betterment for the society. Shouldn't the same idea work in a big corporation? Shouldn't CEO or management be elected by the people (i.e. the staff)?

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    Jul 11 2013: Leroy, I don't think so. The staff and the CEO / Boards serve different purposes. As a laborer you are concerned with things at your level .. work hours, air conditioning, supplies, vacation time, insurance, etc ....

    At the CEO / Board level there is only one concern .... profits. If the CEO does not make money for the stockholders and bonuses for the executives / board he is history.

    Without a profit margin corporations cease to exist.

    Corporations are not democratic .... you are directed to do something ... you do not have a say .... there is no vote ... you refuse you can be fired. That is very simplistic but you get the point. At McDonalds you are told to work the counter ... you say no ... they say good-by.

    I wish you well. Bob.
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    Jul 17 2013: Yes, it would and already does! And you don't even need to elect a CEO, as all major decisions would be made collectively and by this in the true need of 'the people'.
  • Jul 12 2013: No.

    A person elected by the people would more likely be the most popular than the best person to run the corporation. A popular leader is good, but a good leader is essential. Good leaders sometimes have to make unpopular choices.

    As Robert pointed out below, the CEO has one primary concern, profit. The ability for the average worker to determine who would most likely bring the most profit is usually limited. Usually board members are fairly senior, have a large stake in the company, and generally a better than average ability to determine who might best lead a company.
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    Jul 11 2013: No for the same reason it does not work in government
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      Jul 17 2013: That democracy does not work in many governments today is not caused by democracy itself, but due to its true absence.