I don’t know the full history of corporate shenanigans, but it’s my understanding that the beginning of it all was to help form businesses that no individual could afford to start. No single person should reasonably have the funds to build a factory with all of the expensive equipment and parts needed to make cell phones. So you get people together who think cell phones are a good idea, they all pitch in, and now you can afford to build it and they get to share in the profits when it succeeds.
I like the employee-owned idea, but it seems like it would be hard to get off the ground in industries that require huge upfront investments. Imagine you want to build a grocery store, but the land and the building and the initial stock all takes money so you have to ask the cashier for $10,000 up front before you can actually build the thing and later start paying them. I legitimately don’t know, are there proposed ways to build these businesses but make them employee-owned?
It’s been a long time but I recall a study featured on Freakonomics where a national park tried different signs to get people to not steal rocks. Signs like, “Taking rocks hurts the ecosystem” and “Taking rocks is a crime.”
The only effective one was something along the lines of, “A million people visit this park every year and leave things alone.” Suggesting that telling people to do the right thing is less effective than peer pressure.