The word democracy is from the Greek δημοκρατ?α (demokratia), δημος (demos) meaning "the commons, the people" + κρατειν (kratein) meaning "rule, sway, authority," literally "the common people rule."

The OED defines democracy as: "Government by the people; that form of government in which the sovereign power resides in the people as a whole, and is exercised either directly by them (as in the small republics of antiquity) or by officers elected by them. In modern use [democracy is used] often more vaguely denoting a social state in which all have equal rights, without hereditary or arbitrary differences of rank or privilege."

Thus a democracy is a state in which the governance is vested in all its members. No person is considered superior or inferior in terms of their ability to influence decisions. The citizens either make decisions directly or elect representatives who make decisions for them. Evidence of this equality is the method of decision-making: casting ballots, often secret ballots, with the majority of the ballots cast making the final decision.

Other organizations besides states are referred to as being "democratic" or "organized democratically." The goal of the democratic organization is often stated as "the greatest good for the greatest number of people."

Democracy is also associated with freedom of movement, freedom of speech, and freedom to own property.

In addition to the "freedoms", citizens of a sociocracy also have equal rights; in a sociocracy this is refered to as "equivalence" and great lengths are taken to maintain it. But there are two major differences between being a citizen in a democracy and a citizen in a sociocracy. A sociocracy is based on the "socius," the people as companions, as associates. This means that decisions are delegated to groups of people who share a common aim and work together to create mutually satisfactory and workable solutions. Without particpating in the process of decision-making, a person has no voice in that decision although as a citizen they may benefit from it.

Secondly, in sociocracy the power of argument is given the authority that the vote is given in a democracy. The group to which a decision is delegated, the companions, the sociocratic citizens, will study, discuss, and debate issues until they have crafted a solution that meets the aims defined for it.

The objective is to find the best and most workable solution for everyone affected given the constraints of money, time, ability, etc.

When we think of a congress or parliament discussing issues in argumentative and devisive ways this emphasis on argument may seem unworkable, but in fact, once the mind-set of the participants has switched from majority rule to cooperation, this divisive attitude resolves to searching for the best solution for everyone and a new synergy develops leading to better solutions in less time.

In a sociocratic organization, no voting takes place unless all members consent to a vote as the best decision-making method for that specific decision. As a participant in a decision-making group, each person is equivalent and must consent to any decision made.

Democracy, as it is practiced, is in fact rule by the majority. Once decisions are made by majority vote, only the majority has power. The members of a democracy have equal impact on public policy only if they are part of the majority. Voters may cast ballots but the choices are limited and have little chance of influencing decisions.

Majority rule creates minorities that constantly struggle to overthrow the majority. As is evident in the actions of political parties, the importance of party supremacy quickly overtakes the search for good choices. Agreeing with the "other side" can end one's political career. The ideal of democracy as a form of government in which members of the group have approximately equal political power is only true when there is little power to be had. In democratic organizations, especially nations, political power can become highly concentrated and the citizens feel that their votes have little or no effect.

While many diverse countries operate as democracies, very few businesses operate democratically. Small cooperatives often have democratic decision-making processes in which the workers discuss and decide, though most do not actually make decisions by voting. Worker-owned businesses are still structured autocratically when it comes to decision-making. Workers share earnings but not influence in the daily functioning of the business.

This is not true of sociocracy. As a governance structure it is equally applicable to nations and to businesses. While there are as yet no nations using sociocratic governance, there are large businesses and organizations using it.

Of the 100 largest economies in the world, almost half are corporations, not nations. If majority vote does not work for corporations, why are nations still using it?