Corporate news structure and the managerial revolution

Critics contend that corporate news organizations are destroying democracy because they place more emphasis on profits than on information diversity a nd other nonprofit goals considered crucial for creating or maintaining a p olitical democracy. Research shows that corporate news organizations tend t o be more profitable than entrepreneurial news organizations; however, they actually place less emphasis on profits and more on product quality and ot her nonprofit goals. More importantly, the "critical corporate model" appea rs to contain a logical flaw, the "approved contradiction," which claims th at professional managers should maximize profits more than the owners. This claim contradicts the managerial revolution hypothesis that expects corpor ate organizations to place less emphasis on profits as power and control in modem organizations shifts from the owners to professional managers and te chnocrats. This article reviews the managerial revolution hypothesis and co ncludes that attempts to dismiss it outright are premature.