Corporation: Friend or Foe?

Last week in class (October 11), we watched a bit of the Documentary "The Coporation" by Marck Achbat and Jennifer Abbott. What we got to see was really interesting. For the activity, we are going to respond a couple of questions abot the documentary:

1. Should corporations be entitled to the same legal rights as individuals? Where should the line be drawn?

Never should the corporations be given the same legal rights as individuals. The documentary said that corporations have enormous power over society, and that enough is a great threat. Plus, when corporations are given similar rights, I do not think they would respond to the same type of obligations and duties that individuals as citizens have. So, for a corporation as a Limited Liability Company, its rights should also be limited at great extent, drawing the line at the point where if a company grows any bigger, it would endanger the public good.

2. How can we ensure corporations are held accountable for their actions?

Today, it seems like Corporations do not have a face, and that makes it difficult to held someone responsible for actions that harm the general public. Modifying the law, building the proper systems where the actor marginalized by corporations can have a voice, and preventing corporations from becoming uncontrollable forces; could be possible to make corporations accountable for their actions.

In particular, the case of the US is interesting because they allow lobbying in their system, and that has given almost-unlimited power to corporations which can get away with their actions (their corporate agenda) with the hidden support of politicians. Only when corporations stop being the “invisible hand” that controls the government, could they be held responsible.

3. Should individuals (directors, employees, shareholders) bear any responsibility for the actions of a corporation? If so, to what degree?

Yes. At the end, they are the decision-makers and so they should respond for the actions taken on their lead. There should be a shift towards a corporation that puts the interest of the stakeholders around it at the same level of those of shareholders. That only calls for transparency inside the corporation, and so the lead managers should be open to be scrutinized for their actions if they are a threat to society.

4. What are the benefits of the corporate form? Could an alternative model offer these as well?

It has to be acknowledged that many big enterprises have helped to change the world, and sometimes in a good way: Microsoft, General Electric, etc. Since they are really big, they have the resources to produce cheaply and at great amounts which allow more people to afford these products. The question here is whether people could enjoy those same benefits if the products offered today by corporations would be provided by smaller companies which were closer to the public, more “humane” and more aware of its needs. My opinion is that not only would costumers be happy with this alternative, but it would turn them into market-setters and not just conformists, as it is nowadays. Plus, in this case all the environmental damages, the shady worker conditions, and the lack of accountability would probably disappear.

In a similar vein to that of the Corporation, i would like to recommend another Documentary: Food, Inc.

The documentary deals with similar issues to those of The Corporation but focused on the food industry. It shows how powerful corporations endager the public with food products with faulty ingredients and made under so-so practices, and yet the government does not take proper action because those companies are extremely well connected. Also, it proposes ad idea for change similar to my proposal on the last answer.