I taught Business Ethics for many years and during those years I came across a great many reports of the abuse of the power of corporations. It became increasingly clear as I read and thought about this misuse that it stems from the fact that the publicly owned companies ignore the stakeholder because they are primarily (if not exclusively) concerned about the return on the dollar, i.e., profits that can be paid out to shareholders (and overpaid CEOs who typically make 400 times as much as their average employee). What I now take to be an obvious fact has many ramifications.
I have posted before about the oversight on the part of the founders who were so sensitive to the abuse of power and who simply did not see the possible abuses of power that might result from the millions of dollars the corporations rake in every year. — and this despite the fact that Jefferson, for one, was fully aware of the dangers of immoderate wealth in the hands of a few. But the founders simply couldn’t see this coming, clearly. They did realize, however, that the Constitution was a document that required up-dating from time to time; it is not written in stone. Henry Adam thought that when Grant was elected there would be a drastic overhaul of a document he realized was already out of date. But that didn’t happen. But, surely, one of the issues that needs to be addressed in our day is the abuse of the power of corporations that can simply buy elections and determine who is allowed to hold public office and what those who have been elected will do when in office (if they want to be reelected).
In 2010 the Supreme Court decided by a vote of 5-4 in the “Citizens United” case that corporations are “persons” and have rights of free speech as protected by the First Amendment. Under that umbrella, they were given the green light to contribute to political campaigns — which they have subsequently done, in spades. Elections were increasingly a battle of the rich against the also rich, but the contributions of the corporations — not to mention those who run the corporations — have upped the ante considerably. Now we find ourselves faced with continuous requests for money from candidates and political parties to “take on” the corporations — as though this can be effectively accomplished.
I don’t buy the notion that corporations are persons and I think the claim I have seen argued that, as persons, they might somehow be shamed into behaving ethically is a bit dubious. If the shame were to result in lower profits corporate CEOs would simply pass along the losses to the customers until the PR people could direct attention elsewhere and convince the public that no real harm was done. This was the case with the Exxon Valdez oil spill in the waters off Alaska a few years ago when Exxon sent a team of people up to the region of the spill where they cleaned up several hundred yards of oil from the shoreline and then had it filmed and used the film in a public relations campaign to convince customers that they had eradicated the effects of the spill. Ignored altogether, we have since discovered, were hundreds of yards of shoreline out of sight that remained covered in oil. It seems to be in the corporate DNA to do whatever it has to do to “right the ship” in the case of an accident and make sure the image of the company is not seriously damaged. They have public relations people who do nothing else but address this issue. And they have lawyers, who they often call “ethics officers,” whose job it is to see that they take no steps that could possibly end them up in court — because they identify morality with legality and pride themselves in “doing nothing wrong.”
The recent attempts by the current administration to weaken, if not eradicate altogether, the E.P.A. and other regulatory agencies is extremely disturbing because history has shown that the corporations will not police themselves and if their feet are not held to the fire they will do whatever it takes to increase profits, full stop. In an economy like ours regulations are anathema to the corporations and their highly paid officers. But from the public’s perspective they are essential.
Furthermore, those corporations should not be regarded as persons and given the right under the First Amendment to contribute to political campaigns. The founders missed this one, but we are becoming increasingly aware of the abuses of power by the corporations and the need to rein them in by limiting their impact on the public domain. The first step, clearly, is the rejection of the Citizens United decision which at least two of the judges who voted for it now realize was a mistake. And, if we cannot revise the constitution, we can certainly modify it to see to it that controls are placed on otherwise unfettered power. That is, we can if we have the will.