firmism

Firmism is a term used in some discussions of political economy to describe a doctrine that privileges the role of firms as central actors in economic and social life. In its strongest forms, firmism argues that public policy should be organized to maximize firm performance, competitiveness, and value creation, with social and political arrangements aligned to sustain corporate growth.

The term is not standardized and appears in critical, descriptive, and sometimes advocatory contexts. It has been used to critique frames that treat the market and firms as autonomous engines of prosperity, sometimes contrasting firm-oriented rationales with broader considerations of labor rights, environmental sustainability, and democratic accountability.

Core tenets commonly attributed to firmism include: the primacy of the firm as the primary unit of economic value; policy instruments that prioritize profitability and return on investment; governance mechanisms that favor owners and managers over other stakeholders; and deference to market competition and deregulation as primary means to societal welfare.

Variants of firmism appear in critiques of neoliberalism and in analyses of corporate governance, with some observers arguing that firm-centric logic has become ingrained in public institutions, while proponents contend that firms are efficient coordinators that create wealth and innovation when properly regulated.

Critics charge that firmism can erode democratic process, intensify inequality, and narrow public accountability by prioritizing corporate interests over workers, communities, and environmental considerations.

See also: corporate governance, neoliberalism, stakeholder theory, shareholder primacy, political economy.