Taming corporations: initiative offers democratic strategies
A reader’s e-mailed response to August 7th’s Pencil Warrior illustrated the impasse many Americans have reached on the issue of corporate power. “I hope you tell us how to exercise some meaningful control over the abuses you describe,” read the message from Albuquerque.
For millions, the corporate wall between themselves and a more equitable, sustainable, and meaningful existence is entirely apparent. They understand the core issue is one of governance: why, in every decision-making process, should an inanimate entity have a virtual lock on the outcome? Is cold efficiency more important to us than the ability to reach value-guided outcomes?
Although awareness and longing for change is growing, corporations continue to expand their grip over economies, governments and individual lives. My observations tell me this is largely because people have been frustrated in their attempts to seek relief through accepted channels. They’ve tried writing their representatives, mounting petitions, and speaking out at regulatory hearings. Yet even when citizens’ efforts at stopping one corporate abuse are successful, too often they soon find themselves fighting a new version of the same battle - even as multiple outrages have popped up elsewhere. Perhaps most disheartening, they’ve even rolled up their sleeves to get candidates elected - only to find their input ignored in favor of that from contributors with corporate connections.
We needn’t – we mustn’t - resign ourselves to corporate authority. But we do need a new strategy. We the People need to go on the offensive.
One strategy - not the only possibility – for bringing corporations under control is represented by The Strategic Corporate Initiative, which aims to “design a long-term movement to transform the role of corporations in our society.” SCI was released in 2006 by a team organized by Corporate Ethics International which includes people from Institute for Policy Studies, Center for Corporate Policy, and Tellus Institute.
The SCI strategy (viewable at www.corporateethics.org) relies on a two-pronged approach: 1) enhancing democratic powers of people and communities to counterbalance those of corporations; and 2) changing the nature of the market system itself to make corporations less destructive.
As part of a “citizens’ rights movement” a firewall between business and government would be erected. In stark and fundamental contrast to present standards, corporate powers and “rights” would be strictly controlled through a highly transparent chartering process. A corporation’s area of business, its lifespan, power of speech, ability to lobby government, level of legal liability, allowable secrecy, etc. – all would be clearly defined by communities in a process of transitioning corporations from a “for profit” mission for their shareholders into one of “for benefit” to society as a whole. With the two sectors clearly separated, citizens could look to government rather than corporations to protect the common good.
In a further departure from the current state of affairs, corporations that betray the letter and spirit of the law would be promptly and decisively dealt with by a legal system reinvigorated to act in such matters. Whereas today the crimes of corporations customarily go unpunished, the example of a few corporations being legally dissolved would quickly convince others to fly right.
Widespread abuses by corporations around the world have given birth to a renewed and growing appreciation for the natural and social institutions people share and rely upon. Natural examples of what’s known as “the commons” include air, land, water, fisheries, soil, seeds, sunlight, airwaves, etc., while the social commons include things we create together, such as schools, roads and rail systems, laws, cultural knowledge, and much more. Under the Strategic Corporate Initiative model, whole sectors of the commons would be off limits to corporate wheeling and dealing. Instead they would be placed under the responsibility and protection of a system of public trusts, cooperatives, and holding companies, similar to those that already exist for land tracts or public utilities. Removing the commons from the rapacious realm of profit would bring about a fundamental and positive transformation of the market system.
The SCI initiative is noteworthy for the specific and strategic nature of its targets. For each suggested area of action the authors identify a near-term as well as long-term goal. For instance, on the subject of “transforming corporate purpose” a short-term objective could be “taxing short-term capital gains at a higher rate than long-term gains” while a longer-term reward would be getting institutional investors like colleges and retirement funds to make value-guided investments in socially beneficial enterprises like alternative energy or public infrastructure projects.
As I said, the SCI model may not be the model We the People settle on for taming corporations and restoring democracy. But in the face of an obvious need for action, opening a public dialog that identifies problems and suggests possible solutions against a democratic backdrop is a critical first step.
Dave Wheelock (davewheelock - all one word, lower case- at yahoo.com) is a member of the Oneida Nation of Wisconsin. Unlike some columnists he affirms the importance of identifying his sources. Mr. Wheelock's views do not necessarily represent those of Socorro News.
Copyright 2008, Dave Wheelock; all rights reserved
