In this article, we argue that in the contemporary globalized economy business firms face two interrelated challenges that result from the growing complexity and dynamics of corporate environments increasing threats to corporate legitimacy and growing efficiency problems. As a result, corporate legitimacy and efficiency are potentially weakened. We specifically explore the communicative requirements for tackling both the problems of organizational legitimacy and of efficiency. On this basis, we suggest to make business firms subject to democratic processes based on stakeholder participation and open communication. The partial democratization of business firms can serve as a corrective to the dominant economic logic underlying corporate structures and processes by simultaneously addressing economic and moral considerations and by enhancing both efficiency and legitimacy.