Tuesday, March 1, 2005
Summary: Corporations are not accidentally amoral. It's a pathology built into their structure.
Notes From an audio recording of an Interview of Joel Bakan (Professor of Law at UBC , author of Corporations: The Pathological Pursuit of Profit and Power ) , other notes taken from a thesis written by one of Prof Bakan's students.
Corporations
are institutions which are, by reason of their structure and the laws associated with
their structure, constrained to operate always and only for
the benefit of the corporation. The corporate structure appears toc
orrupt people who are under other circumstances 'good'. This corruption
leads corporations into bad citizenship. Thus, it is argued,
governments must oversee and constrain the corporations; this need
was understood when corporations were first created in N. America in
the
vary late years of 18th century. They were not allowed to grow beyond a
certain
size or to own
other corporations and their capitalization was limited)
--------------------
What is built into ALL corporate charters, into corporate law, even, is
that they are to operate always and only for the benefit of the
corporation and its shareholders. This corrupting influence must
be countered by the terms underwhich it is supervised and chartered by
the state. Otherwise, and as is the present case, particularly in
large, transnational corporations the result is a form of psychotic
behavior.
- Failure to conform to social norms with respect to lawful and
ethical behaviors. (Often this is associated with making others pay
their
expenses. Examples of exporting expenses: exporting jobs to malaysia
where workers get 10 cents an hour, failing to do proper environmental
cleanup and polluting land that is not in the corporations portfolio.
- Reckless disreregard for safety of others
- Deceitfulness: repeated lying and conning others for profit
- Incapacity to maintain enduring relationships
- Callous unconcern for the feelings of others
- Incapacity to experience guilt
- Thus: diagnosis of personality disorder = psychopath (World Health Organization 1CD-10, Manual of Mental Disorders DSM-IV)
In Taking Charge--Corporate Charter Revocation in Canada Read Gil Yaron's careful analysis of the charter revocation strategy. (His Masters Thesis is here and a summary is here).
Excerpts(emboldening is mine, SPH):
"All corporations were once considered public institutions.
The act of incorporation was a privelege (not a right) granted for a
specific purpose, such as building a bridge or running a ferry.
Corporations had a limited amount of capital and a finite existence.
Corporations were fully liable for their actions. And where a
corporation acted against the public interest or abused its charter, it
could have the charter revoked. The power of the state (and in some
cases, of citizens) to revoke the charter of a corporation reminds us
that the corporation is not an end in itself, but rather an institution created by citizens for citizens." [p 2 of summary]
"More recently, the [sigma] Attorney General of New Yoyrk State, Dennis
Vacco, initiated proceedings to revoke the charters of two tobacco
lobby organizations, the Tobacoo Institute and the Council for Tobacco
Research, on the grounds that they (1) obtained their charters through
fraudulent misrepresentation and concealment of material facts; (2)
transacted their business in a persistently fraudulent or illegal
manner; and (3) exceeded the authority conferred upon them by law and
abused their powers in a manner contrar to the public policy of the
State. Citing numerous decisions in support of revocation where there
was demonstrated a "grave, substantial and continuing abuse, involving
a public rather than a private right, Crane J. of the New York State
Supreme Court on October 21 1998, appointed receivers for both groups,
ordered each group to file a $500,000 bond and provide a statement of
assets and liabilitiess, names and creditors and claimants and all
other information relevant to dissolution procedings. [pp 3-4 of
summary]
"Despite its profound implications, corporate charter revocation is
admittedly not a compete response to tghe issue of corporate power and
influence in today's society. Corporate charter recocation does not
challenge the legitimacy of the corporation itself to make decisions without input from affected individuals and communities.
Corporate charter revocation does not answer this systemic imbalance
within our society, but merely provides one remedy to challenge the
worst cases of corporate crime and to place some meaningful deterrents
on corporate behavior. [pp 5-6 of summary]
On the whole, he found, that very much still needs to be done to establish
substantial precedent for charter revocation. In the US only in the
case cited was this measure successful. Five other compelling cases died on or near some state Attorney General's desk.
The author suggests that
attempts to build a base of precedents should not focus on
transnational companies (Union Oil, in California, Weyerhauser in
Washington and both involving industries with tarnished public
images)and
should focus on issues that are of clear concern to the state, in
particular, to the Attorney General of the state where wrongs have been
done. In sum, the author noted the need
to focus at first on small, local institutions with minimal community
presence in order to ensure minimal political fallout. What is
ultimately required is that "those seeking to bring such petitions
broaden their strategies [sigma] [to consider, in addition to the wrongs
done] the social and political context in which the corporation
operates"(p 142 of the full thesis).
Summary: Reality Check:
when almost all public communication of any sort (see below) is
controlled by corporations, where are we going to have the FAIR
discussion of the accusation that corporations are monopolistic and
unresponsive to public needs and public measures of ethical conduct?
Where would any accusation concerning corporate existence get a fair public hearing? Weblogs, right? How long will that continue?
According to Bernie Sanders, Vermont representative in US
Congress, "[if
you are reading something on paper, listening to radio, watching a
television or movie screen] Five
Corporations Control The Majority of
What You See, Hear and Read
". Those corporations are: TimeWarner, News Corp, Viacom, Walt Disney
and General
Electric.
We've come a long way since corporations were created and dissolved at
the discretion of state governments. A long way since the time when
their sole purpose was to achieve the fulfillment of some limited public need and
when profit was
not a
consideration.
As an illustration of breadth of control in the hands of one
corporation we can look at this Viacom analysis done by Oligopoly
Watch
21 months ago. (See Sanders' site, above, for Flash-based analysis of
the others.) As the table illustrates, the span of ownership, and control, is
incredible.
Category | Subcategory | Properties | Notes | Television | Channels | CBS,
BET, CMT (Country Music Channel), Flix, MYV), MTV2, N, Nickolodeon,
Nick at Nite, Noggin, Showtime, New TNN, Sundance (part), The Movie
Channel, TV Land, UPN, VH1, Game One (50%, France), Comedy Channel
(recently bought remaining 50% from Aol-Time-Warner)
| CBS usually #1 network MTV seen in over 25
countries; Nickelodeon in over 15 countries,
|
| CBS
Stations | In
Austin, Baltimore, Boston, Chicago, Dallas, Denver, Detroit, Green Bay,
Los Angeles, Miami, Minneapolis, New York City, Philadelphia,
Pittsburgh, Salt Lake City, San
Francisco |
|
| UPN
Stations | Atlanta,
Boston*, Columbus, Dallas*, Detroit*, Indianapolis, Miami*, New
Orleans, Norfolk, Oklahoma City, Philadelphia*, Pittsburgh*,
Providence, Sacramento, San Francisco*, Seattle, Tampa, West Palm
Beach | * = Second channel owned in
market |
| Other
stations | Alexandria (MN), Walker (MN), Escabana (WI),
Washington (UT), Los Angeles* | 2003, Viacom bought KCAL-TV, last
independent station in
LA |
| Affiliates | CBS (around 210), UPN (around
80) | CBS has one affiliate in
Bermuda | Film
& Television | Studios | Paramount
Pictures, Paramount Television, Paramount Home Video, CIC Video (part),
MTV Productions, Nickelodeon Studios, Spelling Entertainment (part),
Republic Entertainment, Wilshire Entertainment, EYEMARK, Big Ticket
Enterprises, Worldvision, Hamilton Projects, King
World |
|
| Library | Paramount Film Library
| 2,500
films |
| Video
Rental | Blockbuster Video, Viacom Entertainment Stores,
Blockbuster Music | Blockbuster = #1 Video chain (over 8,500
stores worldwide) |
| Theaters | Famous
Players (Canada, 103 locations, 853 screens); United Cinemas
International (joint venture with Universal, 120 theaters, 1,092
screens in 11 countries) |
|
| Distribution | United International Pictures
(joint venture with Universal), distributes films in over 250 countries
|
| Amusement
Parks | Paramount
Parks | In CA (2), NC,NV, OH, VA, and Ontario
|
| Publishing | Presses and
Imprints | Simon
& Schuster, Scribners, Pocket Books, Washington Square Press,
Anne
Schwartz Books, Archway, Minstrel, Lisa Drew, Fireside, The Free Press,
Touchstone, BET Books, MTV Books, Nickelodeon Books, Star
Trek |
| Radio | CBS Radio/Infinity
Broadcasting | Atlanta
(3 stations), Austin (4), Chicago (6), Cincinnati (4), Cleveland (4),
Columbus (3), Denver (3), Detroit (6), Fresno (7), Greensboro (3),
Hartford (3), Houston (2), Kansas City (4), Las Vegas (6), Los Angeles
(9), Memphis (2), Minneapolis (4), New York (5), Orlando (3),
Philadelphia (5), Phoenix (3), Pittsburgh (4), Portland, OR (5),
Riverside (4), Rochester (4), Sacramento (6), Saint Louis (3) San
Antonio (2), San Diego (2), San Francisco (7), San Jose (2), Seattle
(5), Tampa (5), Washington, D.C. (4), West Palm Beach
(5) | #2 radio network; one of top three stations in
most major markets |
| Radio
production | Westwood One,Metro Networks, Shadow Broadcast
Services, SmartRoute Systems | largest U.S. supplier of traffic,
news, sports, and weather, on over 3,000
stations | Music | Publishing | Famous
Music | 100,000 song
copyrights | New
Media | Principal web
sites | BET.com, CBS.com, CBSNews.com, CBSHealthWatch.com
(part), MYV.com, Nickelodeon.com, SonicNET (music site),
VH1.com |
|
| Viacom Interactive
Ventures | Hollywood Media, iWon, MarketWatch (part),
Medscape, MovieTickets, SportsLine
(part) |
| Marketing | Brand
Management | Viacom Consumer
Products |
|
| Key Brands,
Franchises | Star Trek, Jeopardy, Wheel of Fortune,
Entertainment Tonight |
|
| Outdoor
Advertising | TDI Worldwide, Viacom Outdoor Systems, Infinity
Outdoor | #1
billboard company in the U.S. and Europe, 100,000 bulletin, poster,
mall, and transit advertising display faces in North America and over a
million worldwide.
|
Naturally what we now"get" from these communication organizations is
linked to corporate profit rather than world, ecological, national,
local or
personal need. This linkage -- to needs-- used to be central to
incorporation. For the first 100 or so years of
our republic corporations were created to serve needs and dismantled
after that need had been addressed. Dissolution also occured at
governmental discretion when, for example, a corporation was viewed to
be
violating terms of their charter.
In the present day world, each of these giant communication
corporations has been represented as an oligopoly , i.e., a monopoly
without the regulation. Each of these corporate entities is, in terms
of accountability, a "person" and, because of US Constitutional
protections for personal freedom, nearly* unassailable. Public utility
no longer is central.
Here's how the workings of oligopolies have been
described:
Oligopoly and the market
In the ideal free-market economy of our
politicians, every product has
an equal chance to make it big. But in the real world, entrenched
forces combat equal opportunity. The market in most sectors is not a
democracy but an oligopoly. Even the Internet, which was supposed to
"change all that" is in danger of becoming still another tool that
mostly enhances the power of the oligopolies that rule major
markets.
In many developed market sectors, two or three
players now command over
75% of the total market. Just as Coke, Pepsi, and Cadbury-Schweppes
dominate soft drinks, so too so Budweiser, Miller, and Coors share the
American beer market, while Nabisco, Keebler and Pepperidge Farms are
the masters the cookie industry. (Typically enough, Sunshine Bakeries
which used to be number three, was acquired by Keebler in 1996. Keebler
in turn was acquired by Kellogg in 2000. Nabisco is a division of
Kraft/Philip Morris and Pepperidge Farm is owned by relatively minor
player Campbell.)
This tendency toward oligopoly is accelerating, as
fewer and fewer companies grapple to control the limited mind space. In
the book industry, historically an arena of many small and mid-sized
competitors , there are now far fewer major players, both on the
production and distribution side. A few large conglomerates
(Bertelsmann, The News Corporation, Viacom, and, until it recently
pulled out of the book business, Time-Warner) publish most leading
titles, and a few chains (Barnes &Nobles and Borders) dominate
retail sales, along with online shopkeeper Amazon. This state of
affairs has been brought about by a series of mergers, acquisitions,
and bankruptcies over the past thirty years.
In the same way, there are
far fewer major recording studios than twenty years ago; fewer and
fewer movie chains and movie studios. As for magazines, they are
dominated by just a half dozen companies -- Conde Nast, Time-Warner,
News Corporation, Hearst, Hachette Filipacchi and Bertelsmann.
[Oligopoly
Watch (6/7/2003)]
*Unless we put corporate existence on an accountable footing by
removing bogus personal rights. See this page at ReclaimDemocracy.org
for some study materials.




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