Target the Legislators

I wrote yesterday on the Supreme Court’s ruling on campaign financing. A good friend of mine left a great comment. My response ended up longer than any post I’ve made on this blog, so I’ve given it its own post.

corporations are solely obligated to act in the best interest of their stockholders.

They don’t even have that obligation. Species of fish in a drying sea have no obligation to develop legs, but the ones who do are more likely to survive.

It is expected that every human will act in his own best interest. It is up to the individual to decide what his interests are, what he values. This goes for every last choice made by any human ever. You make a choice based on the things you’ve personally chosen (consciously or not) to value. If you act for the sake of someone else’s well-being, then you’ve merely chosen their well-being as a personal value. (If we don’t have common ground on this point, then nothing I’ve written below matters.)

Further, a group whose individuals’ self-interests align on a certain issue will coordinate and act accordingly. (This is merely the sum of individuals making personal choices, as above, not a collective choice.)

Whether a corporation is under the sole direction of a President/CEO or a board of directors, those in charge will always act in their own best interest. There is no other way. So, the motivation to make money for shareholders comes from a personal motivation of those in charge, who wish to run a successful company with long-term growth while making a bunch of money for themselves. Doing so often requires happy shareholders. This is all to be expected. Whatever actions a corporation takes, it is to further its own health. This includes feigning environmental friendliness, making public donations to Haiti, and IBM’s “smarter world” ads. They’re creating a positive public image, which they expect to result in future profits. There’s nothing wrong with this, but it must be understood for what it is. Corporations do not pursue social responsibility because they like being socially responsible. They pursue profits, and the UN Global Compact abiders you mentioned have wagered that abiding will bring them more future profits.

that means make them a shit ton of money and screw over the environment, developing countries, and human rights among other things.

If screwing over the environment, small countries, and human rights were in the best interest of shareholders, we would have a very different world. To be more accurate: “that means make them a shit ton of money and screw over the environment, developing countries, and human rights among other things.” That, and create potential for more money in the future, i.e. a healthier company. That’s the driving force. I think you are contending that corporations do this at the expense of the environment, developing countries, and human rights. Some do, but not all. This only means that some corporations take actions that you and I wish to prevent by force, but not all. So it says nothing about corporations in general. Those corporations who are not violating human rights are still motivated by profits, not social responsibility.

where an individual is easily prosecuted for acts against their fellow man, corporations have an unfair advantage – usually the result of lining the pockets of their legislators.

You struck gold here. I’ll dig.

Suppose a criminal pays off a cop to look the other way. Who’s at fault? Both should be prosecuted for different things, but how can this be prevented? People in society can’t remove the criminal, that was the cop’s job. But they can remove the cop. Assuming the people elected the mayor, the mayor appointed the police commissioner, and the commissioner hired the cop, then the people are ultimately responsible. If the bribery is rampant, throw that fuckin mayor out of office.

When a corporation acts criminally, they are responsible for the crimes, but not for the fact that it went unpunished. That’s the legislator’s fault. And every citizen who gave that legislator their vote shares in the blame. Targeting corporations will do nothing to rectify the situation. Target the legislators.