New Book: Corporate Power and the Politics of Change
In an era when corporations are increasingly shaping public debate and stepping into roles once associated with government, Rutgers Law Professor Matteo Gatti offers a timely and comprehensive examination of this shift in his new book, Corporate Power and the Politics of Change (Cambridge University Press, 2026). Professor Gatti will give a talk on his new book at Rutgers Law on Wednesday, February 4.
Corporations have become far more visible over the past decade during major political and historic events, from public statements about the January 6 insurrection in Washington to reactions on the United States’ withdrawal from the Paris Agreement. The once‑clear line between economic activity and political authority has become far more complex as companies began weighing in on social issues and filling gaps left by public institutions.
In the book, Professor Gatti analyzes how corporations now engage in what he calls corporate governing. This phenomenon takes two forms: socioeconomic advocacy, when companies take public stances, and government substitution, when they deliver services or protections the state does not provide.
Drawing on legal doctrine and insights from the social sciences, Professor Gatti shows how this shift reflects broader pressures within firms and deep dysfunction outside them. He also explores the political, legal, and cultural backlash that has emerged in response, challenging both the legitimacy and scope of this expanded corporate role. The book offers a framework for understanding how corporate power reshapes policymaking and what that means for business and democracy. Notably, it clarifies both what to expect—and what not to expect—from corporate activism in the current political climate.
Professor Gatti said, “Over the last decade, corporate involvement moved well beyond traditional lobbying. Firms engaged contested issues directly, embedded social commitments into internal policies with external consequences, and, at times, performed functions typically associated with public authority. This was not episodic or symbolic. It became a recurring feature of how policy outcomes were shaped across a range of socioeconomic domains, contributing to the expectation that corporations might function as public-facing actors in moments of political dysfunction.”
He adds that the book separates questions that are often conflated. Is corporate governing consistent with corporate law and fiduciary duties? Is it strategically rational for firms? Does it benefit society? Does it pose risks to democratic institutions? By diving into these questions, the book moves the debate beyond slogans and toward institutional analysis.
In addition to teaching at Rutgers Law, Professor Gatti is a research member of the European Corporate Governance Institute. His work sits at the intersection of corporate law, financial regulation, and political economy, with a focus on corporate power, governance structures, and the interaction between firms, markets, and public institutions. He has worked in private legal practice and in-house counsel roles in multiple jurisdictions on corporate and M&A matters.
His scholarly work has been published or accepted for publication in leading journals, including the Stanford Law Review, Journal of Corporation Law, BYU Law Review, North Carolina Law Review, Columbia Law Review Forum, Journal of Corporate Law Studies, and the European Business Organization Law Review. His research has been cited in major treatises and regulatory reviews, including by the European Commission.
Professor Gatti has also held visiting appointments and fellowships at institutions including Goethe University Frankfurt and Harvard Law School, and lectures and presents regularly around the world. His work and commentary regularly appear in academic and policy forums such as the Harvard Law School Forum on Corporate Governance, the CLS Blue Sky Blog, the Oxford Business Law Blog, and Jotwell, as well as in mainstream outlets including the Financial Times, CNN Business, Forbes, and Law360.