My ten-year-long dream has finally come true – to publish a list of the most democratic workplaces in the world! My hope has been that by raising the profile of democratic workplaces we can help inspire a “new school” of business design and leadership based on freedom instead of fear, democracy instead of command and control.

Today, a day we’ve also declared as Democracy in the Workplace Day is historic. I think the business world has been one of the last frontiers to accept that a democratic environment is not just a wonderful thing for your country but your organization as well.

When we announced the WorldBlu Search for the Most Democratic Workplaces in the World last fall, we didn’t know what to expect. How many democratic organizations are really out there? How many would see themselves as democratic and actually apply?

I look at this year’s list and I feel excited and inspired. It’s fresh. It’s new. It’s comprised of for-profit and non-profit organizations from the technology, manufacturing, retail, telecommunications and services sectors.

Each one of these organizations had their employees take an extensive survey that measures the degree of democracy in their workplace based the practice of the ten principles of organizational democracy by both individuals and leaders, and the presence of these principles in the organization’s systems and processes.

We let the people that work in these organizations each day – rather than outside reviewers – tell us if their workplaces were democratic or not.

Consider just some of the ways these organizations practice the principles of democracy:

• At Linden Lab, makers of the Second Life online virtual world, key financial data is openly shared in real-time on giant flat-screen TVs, employees are encouraged to chose their own work rather than be told by someone else what to do, and they show their appreciation for one another by “sending love” through their “Love Machine” online program.

• Great Harvest Bread Company calls their franchise model a “freedom franchise” because it nurtures creativity, excellence and a true sense of ownership.

• At Continuum, a design consultancy in Boston with offices in Milan and Seoul, they have “open town forums” each month.

• The Grammy® Award-winning Orpheus Chamber Orchestra based in New York City is completely conductorless, rotating leadership amongst orchestra members.

• At Equal Exchange, the employee-owners elect their Board of Directors and hold six of the nine seats.

• GE Aviation’s Durham Engine Facility is flat, with just one Plant Manager for 260 employees.

I’m also excited to see that it’s possible for organizations to function democratically even if their country isn’t embracing democratic principles.

A case in point is i-Free, Russia’s market leader in mobile content and services with millions of subscribers in Russia, India, Ukraine, Kazakhstan and Brazil. “Our democratic practices logically flow out of our [company] values,” explained CEO Kirill Petrov.

When we asked organizations who made the list why they practiced organizational democracy, Brian Scudcmore, Founder and CEO of the $158 million company 1-800-GOT-JUNK? said, “Creating the world’s largest junk removal service is completely in alignment with being recognized as one of the world’s most democratic places to work. To ensure our organization is a world-class working environment, we focus on employee engagement through our open-office concept to create alignment and trust with our employees. We know that our steady growth and customer satisfaction relies on our ability to carry out these democratic processes.”

Seth Goldman, Founder and CEO of Bethesda, Maryland-based Honest Tea explained the value of workplace democracy as fundamental to their competitiveness. “We try to stay away from hierarchy and instead share information, and promote communication and common goals among all levels and departments in the company. Hierarchy just gets in the way when you’re running a fast-paced, growing company.”

At Zingerman’s Community of Businesses in Ann Arbor, Michigan, CEO Ari Weinzweig explained that a democratic workplace impacts the bottom-line. “Most people want to be a part of something greater than themselves, to contribute positively to the world around them, and we’ve always worked to give them that opportunity. . . By involving as many people as possible in what we do at every level of the work, we’re convinced that we get better results on all three of our bottom-lines—the quality of our food is better, our service is better, and our financial results are better as well.”

Organizations wanting to attract and retain top talent, boost innovation, and harness the full potential of the next generation workforce can take cues from democratic organizations. “At Guayakí we are pioneering a new business model that demands creative solutions and we find that through democratic practices we all bring our whole selves to the process and that elevates the quality of our decisions,” said Chris Mann, CEO of Guayaki Sustainable Rainforest Products, Inc. in Sebastopol, California.

Ann Price, Founder and CEO of the software firm Motek in Beverly Hills, California agrees. “It’s an incredibly fierce advantage.”

The WorldBlu List of Most Democratic Workplaces is not about recognizing workplaces that have bring-your-dog-to-work perks or gourmet lunches (though some organizations on the List offer these perks!). It’s about honoring and promoting a new model of organizational design and leadership that is increasingly relevant in an age of information and participation.

Click here to see WorldBlu List of Most Democratic Workplaces 2007 or download it by clicking on the PDF icon below.

If your organization is democratic or you know of one that is, click here to apply for next year’s WorldBlu List 2008.

Let’s keep growing this list!