ABSTRACT
The authority-based conception we propose can be linked to a governance model: the pluralistic model of governance. The theoretical aspects of this model were developed in the context of the domination of the shareholder primacy approach. There is room, however, for alternative models as the bases of such an approach are flawed (in particular, regarding the link between shareholder power and risk-taking). Shareholder primacy is only one of the three monistic models of governance, which can be defined as primarily serving the interests of one party only. As the other two – the executive model and the employee (cooperative) model – also have their drawbacks, this chapter proposes to move from these monistic models to a pluralistic one. The pluralistic model is a governance model in which power is allocated to the three parties who structurally support the risk of the company, invest in it and have a common interest in it. These constituent parties are the shareholders, the managers and the employees. This approach was developed independently from the authority-based conception but is entirely compatible with it. It gives the concept of authority, the importance it deserves and fully supports the implementation of reflexive authority.
