Corporate Democracy Act

The Corporate Democracy Act of 1980 was a bill introduced on April 2 to the 96th Congress by Representative Benjamin S. Rosenthal. The bill had eight cosponsors and was promoted by an alliance of consumer, labor, religious, and environment groups, most prominently, Ralph Nader, a lawyer and consumer advocate. It would have established additional federal standards for the internal governance and conduct of large nonfinancial corporations with more than 5,000 employees or $250 million in total assets. Although the bill was never passed, its introduction had lingering effects.

The sponsors of the bill and its advocates wanted to promote ethical business practices through broader public participation in and greater transparency of corporate activities, as well as increased rights for employees and penalties for corporate leaders who ...