Showing posts with label 1995-07. Show all posts
Showing posts with label 1995-07. Show all posts

Monday, 31 March 2014

#449: Corporate Behavior

=======================Electronic Edition========================
RACHEL'S ENVIRONMENT & HEALTH WEEKLY #449
---July 6, 1995---
News and resources for environmental justice.
==========
Environmental Research Foundation
P.O. Box 5036, Annapolis, MD 21403
Fax (410) 263-8944; Internet: erf@rachel.clark.net
==========
RACHEL-4CM = DIOXIN FOCUSED DIRECTORY
Remote Access Chemical Hazards Electronic Library.
Dioxinnz.com
================== Original Source ==================

In an editorial last month (6/18), the NEW YORK TIMES noted that the environment of the Western states is under siege by commercial interests (grazing, mining, timber, developers, big commercial farmers), and a small but noisy group of property rights activists, engaged together in a full-scale mutiny against Federal and state regulations meant to protect what is left of America's natural resources. "The war in the west and the war in Congress on basic environmental protections have much in common," the TIMES said. "First, both are being driven and in some cases underwritten by big business. Second, both are being waged to save the 'little guy' from Federal tyranny. Third, this alleged little guy is nowhere to be found when the time comes to draft crippling legislation. Indeed, his wishes have been largely ignored. Poll after poll suggests that what ordinary citizens want is more environmental protection if it means a cleaner environment and a healthier society."

Most citizens want the environment protected, but Congress and the states are giving us the opposite. How does that happen?

The short answer is "money in politics." Legislators are beholden to the individuals and corporations who provide mountains of cash for election campaigns. The solution to that problem is public financing of elections.

But the full answer is a bit deeper than that. The commercial interests destroying the environment world-wide are not just "bad people" or crooks. They literally can't help themselves because of the kind of organization that propels their behavior: the corporation. Successful advertising executive Jerry Mander writes that, "The corporation is not as subject to human control as most people believe it is; rather, it is an autonomous technical structure that behaves by a system of logic uniquely well suited to its primary function: to give birth and impetus to profitable new technological forms, and to spread techno-logic around the globe." [1]

Mander suggests 11 rules that describe corporate behavior, which we offer here in shortened form (we urge you to get and read the original, which is eloquent):

1. The Profit Imperative: Profit is the ultimate measure of all corporate decisions. It takes precedence over community well-being, worker health, public health, peace, environmental preservation or national security. Corporations will even find ways to trade with national "enemies"--Libya, Iran, the Soviet Union, Cuba --when public policy abhors it. The profit imperative and the growth imperative are the most fundamental corporate drives; together they represent the corporation's instinct to "live."

2. The Growth Imperative: Corporations live or die by whether they can sustain growth. On this depends relationships to investors, to the stock market, to banks and to public perception. The growth imperative also fuels the corporate desire to find and develop scarce resources in obscure parts of the world.

3. Competition and Aggression: Corporations place every person in management in fierce competition with each other. Anyone interested in a corporate career must hone his or her abilities to seize the moment. This applies to gaining an edge over another company or over a colleague within the company. As an employee, you are expected to be part of the "team," but you also must be ready to climb over your own colleagues.

Corporate (or athletic) ideology holds that competition improves worker incentive and corporate performances and therefore benefits society. Our society has accepted this premise utterly. Unfortunately, however, it also surfaces in personal relationships. Living by standards of competition and aggression on the job, human beings have few avenues to express softer, more personal feelings.

4. Amorality: Not being human, corporations do not have morals or altruistic goals. So decisions that may be antithetical to community goals or environmental health are made without misgivings. In fact, corporate executives praise "nonemotionality" as a basis for "objective" decisions.

Corporations, however, seek to hide their amorality and attempt to act as if they were altruistic. Lately, there has been a concerted effort by American industry to seem concerned with environmental cleanup, community arts or drug programs.

It is a fair rule of thumb that corporations tend to advertise the very qualities they do not have in order to allay negative public perceptions. When corporations say "we care," it is almost always in response to the widespread perception that they do not care. And they don't. How could they? They don't have feelings or morals.

5. Hierarchy: Corporate law requires that corporations be structured into classes of superiors and subordinates within a centralized pyramidal structure: chairman, directors, chief executive officer, vice presidents, division managers, and so on. The efficiency of this hierarchical form, which also characterizes the military, the government and most institutions in our society, is rarely questioned.

The effect on society from all organizations adopting the hierarchical form is to make it seem natural that we have all been placed within a national pecking order. Some jobs are better than others, some lifestyles are better than others, some neighborhoods, some races, some kinds of knowledge. Men over women. 

Westerners over non-Westerners. Humans over nature.

That effective, non-hierarchical modes of organization exist on the planet, and have been successful for millennia, is barely known to most Americans.

6. Quantification, Linearity, Segmentation: Corporations require that subjective information be translated into objective form, i.e., numbers. The subjective or spiritual aspects of forests, for example, cannot be translated, and so do not enter into corporate equations. Forests are evaluated only as "board feet."

When corporations are asked to clean up their smokestack emissions, they lobby to relax the new standards in order to contain costs. The result is that a predictable number of people are expected to become sick and die.

7. Dehumanization: In the great majority of corporations, employees are viewed as ciphers, as cogs among the wheels, replaceable by others or by machines.

As for management employees, not subject to quite the same indignities, they nonetheless must practice a style of decision making that "does not let feelings get in the way." This applies as much to firing employees as it does to dealing with the consequences of corporate behavior in the environment or the community.

8. Exploitation: All corporate profit is obtained by a simple formula: Profit equals the difference between the amount paid to an employee and the economic value of the employee's output, and/or the difference between the amount paid for raw materials used in production (including costs of processing), and the ultimate sales price of processed raw materials.

Capitalists argue that this is a fair deal, since both workers and the people who mine or farm the resources (usually in Third World environments) get paid. But this arrangement is inherently imbalanced. The owner of the capital --the corporation or the bank --always obtains additional benefit. While the worker makes a wage, the owner of the capital gets the benefit of the worker's labor, plus the surplus profit the worker produces, which is then reinvested to produce yet more surplus.

9. Ephemerality: Corporations exist beyond time and space: they are legal creations that only exist on paper. They do not die a natural death; they outlive their own creators. They have no commitment to locale, employees or neighbors. Having no morality, no commitment to place and no physical nature (a factory, while being a physical entity, is not the corporation), a corporation can relocate all of its operations at the first sign of inconvenience: demanding employees, high taxes and restrictive environmental laws. The traditional ideal of community engagement is antithetical to corporation behavior.

10. Opposition to Nature: Though individuals who work for corporations may personally love nature, corporations themselves, and corporate societies, are intrinsically committed to intervening in, altering and transforming nature. For corporations engaged in commodity manufacturing, profit comes from transmogrifying [changing] raw materials into saleable forms. Metals from the ground are converted into cars. 
Trees are converted into boards, houses, furniture and paper products. Oil is converted into energy. In all such activity, a piece of nature is taken from where it belongs and processed into a new form. All manufacturing depends upon intervention and reorganization of nature. After natural resources are used up in one part of the globe, the corporation moves on to another part.

This transformation of nature occurs in all societies where community manufacturing takes place. But in capitalist, corporate societies, the process is accelerated because capitalist societies and corporations MUST grow by extracting resources from nature and reprocessing them at an ever-quickening pace. 

Meanwhile, the consumption end of the cycle is also accelerated --by corporations that have an interest in convincing people that commodities bring satisfaction. Inner satisfaction, self-sufficiency, contentment in nature or a lack of a desire to acquire wealth are subversive to corporate goals.

11. Homogenization: American rhetoric claims that commodity society delivers greater choice and diversity than other societies. "Choice" in this context means PRODUCT choice in the marketplace: many brands to choose from and diverse features on otherwise identical products. Actually, corporations have a stake in all of us living our lives in a similar manner, achieving our pleasures from things that we buy in a world where each family lives isolated in a single family home and has the same machines as every other family on the block. The "singles" phenomenon has proved even more productive than the nuclear family, since each person duplicates the consumption patterns of every other person.

Native societies --which celebrate an utterly non-material relationship to life, the planet and the spirit --are regarded as backward, inferior and unenlightened. We are told that they envy the choices we have. To the degree these societies continue to exist, they represent a threat to the homogenization of worldwide markets and culture.

Form is content: 
The most important aspect of these 11 rules is the degree to which they are inherent in corporate structure. Corporations are INHERENTLY bold, aggressive and competitive. Though they exist in a society that claims to operate by moral principles, they are structurally amoral. It is inevitable that they will dehumanize people who work for them and the overall society as well. They are disloyal to workers, including their own managers. Corporations can be disloyal to the communities they have been part of for many years. 

Corporations do not care about nations; they live beyond boundaries. They are intrinsically committed to destroying nature. And they have an inexorable, unabatable, voracious need to grow and to expand. In dominating other cultures, in digging up the Earth, corporations blindly follow the codes that have been built into them as if they were genes.


We must abandon the idea that corporations can reform themselves. To ask corporate executives to behave in a morally defensible manner is absurd. Corporations, and the people within them, are following a system of logic that leads inexorably toward dominant behaviors. To ask corporations to behave otherwise is like asking an army to adopt pacifism. Form is content.

===============


[1] GET: Jerry Mander, IN THE ABSENCE OF THE SACRED; THE FAILURE OF TECHNOLOGY AND THE SURVIVAL OF THE INDIAN NATIONS (San Francisco: Sierra Club Books, 1991). Cost is $14.00; phone: (415) 923-5600. (Chapter 7 is titled, "Corporations as Machines.")

Descriptor terms: wise use movement; property rights movement; environmental regulations; backlash; agriculture; mining; grazing; timber; logging; natural resources; jerry mander; election finance; campaign finance reform; money in politics; corporations; the corporate form; native people; indians;

#455: The Big Problems--Part 4: Controlling Corporations

=======================Electronic Edition========================
RACHEL'S ENVIRONMENT & HEALTH WEEKLY #455
---August 17, 1995---
News and resources for environmental justice.
==========
Environmental Research Foundation
P.O. Box 5036, Annapolis, MD 21403
Fax (410) 263-8944; Internet: erf@rachel.clark.net
==========
RACHEL-4CM = DIOXIN FOCUSED DIRECTORY
Remote Access Chemical Hazards Electronic Library.
Dioxinnz.com

================== Original Source ==================

A Pennsylvania environmental group has taken action to revoke the corporate charters of two major American corporations --WMX Technologies (formerly Waste Management, Inc.), the giant waste hauler, and CSX, a large railroad and ocean shipping company. [1]

The Community Environmental Legal Defense Fund (CELDF)*fn01 of Shippensburg, Pennsylvania [Thomas Linzey, president; phone: 717-709-0457], in June petitioned the attorneys general of Delaware and West Virginia, asking them to revoke the corporate charters of WMX and CSX.

A corporate charter is a piece of paper issued by the authority of state legislatures to groups of people, giving them the privilege of doing business as a "corporation." The benefits of the corporate form are many:
** If a corporation causes harm, the liability of individual investors is limited by law;
** Because investors are numerous and scattered, whereas managers are few and focused, managers and boards of directors control a great deal of money, and therefore a great deal of power, often answerable to no one;
** Corporations can own other corporations, which can, in turn, own other corporations, thus making it very difficult, or impossible, to trace ownership and responsibility for particular corporate actions;
** Because corporations can grow large (often much larger than any state government), in a dispute with government, they can field an army of attorneys and other specialists who can overwhelm the opposition, leading to an accommodation (often called a "consent decree," in which a fine is levied with no admission of guilt) rather than an aggressive prosecution by government;
** Corporations, particularly those with overseas subsidiaries, can often evade taxes by fancy footwork in the bookkeeping department (which may be perfectly legal);
** In court proceedings, corporations enjoy a dozen or more advantages that individuals cannot (for example, fines to corporations are deductible as business expenses, whereas fines to individuals are not);
** Under most modern corporate charters, corporations have unlimited lifetimes, giving them a staying power and an ability to accumulate wealth and strength far beyond anything an individual could ever achieve. Beyond a certain size, corporations become so large that no fine --or even the occasional jail sentence for an errant manager --can deter them from their course. They are simply beyond social control.
** As time has passed, court decisions have given corporations the legal status of "persons," giving them the same protections that the first 10 amendments to the Constitution give to natural persons (individual humans). The first 10 amendments were originally written to protect individual citizens against a tyrannical government--giving individuals rights such as "due process" and "free speech." Corporations have appropriated those rights, which they now use to influence elections, influence law-making by legislatures, influence public education, influence the media, influence and "educate" judges, and influence public policy debates.
Despite these and other advantages of incorporation, the power to give, or revoke, corporate charters still resides with state legislatures, so ultimately the American people hold power over American corporations--though during this century the people have made remarkably little use of such power. Now CELDF has taken a first step to change this picture. Here are a few details about the two cases:

WMX Technologies
WMX Technologies (still better known by its former name, Waste Management, Inc.) is the nation's largest waste hauling firm, headquartered in Oak Brook, Illinois, but chartered in Delaware. In recent years, WMX has been charged with numerous violations of law and regulations and has paid tens of millions of dollars in fines. (See RHWN #299#288#282, an#281.) Based on this record, CELDF on June 14, 1995, petitioned the Attorney General of Delaware to revoke WMX's charter of incorporation. Delaware law gives the Attorney General QUO WARRANTO power to revoke the charter of any corporation for "abuse, misuse or nonuse of its corporate powers, privileges or franchises." QUO WARRANTO (a Latin phrase meaning "by what authority?") describes a proceeding in which the state demands to know by what authority an individual or corporation is exercising a franchise or liberty. Such a proceeding can end in revocation of a corporate charter. Thomas Linzey, the president of CELDF, says Delaware courts have defined "abuse" of corporate privilege as "continued criminal violations." Linzey says he does not expect the Delaware Attorney General to take action against WMX, but eventually he may sue the Attorney General. Delaware law says the attorney general "shall" take action, Linzey says; it is not discretionary.

CSX
In recent years, CSX spills and leaks have caused pollution in several U.S. locations (for example, see RHWN #230 and NEW YORK TIMES 11/21/91, pg. A20), including West Virginia. Based on this record, CELDF on June 9, 1995, wrote West Virginia Attorney General Darrell McGraw, Jr., seeking the revocation of CSX's corporate charter.

SOMETHING NEW
It is clear that there is a new movement afoot in this country to reassert control over corporations. The action in June by CELDF against WMX and CSX could be viewed as the opening gambit in a high-stakes chess game between corporations and the American people. It is a particularly dangerous game for corporations because, if they use their raw power to secure their present privileges against democratic control, they may light the fire under a major public debate, which would alert the public to the extraordinary nature and extent of corporate power. In the ensuing conflagration, corporate privileges could go up in smoke. At present, public attention in the U.S. is focused almost exclusively on "government" as the source of the nation's problems; corporations are nearly invisible, and certainly are nowhere near the center of public debate. Even the mainstream environmental movement for the past 25 years has sought to influence corporate behavior only indirectly, by establishing government regulations--a strategy the mainstream groups continue to pursue even though it has proven to be enormously costly and largely ineffective.

For the past 4 years, the leading proponent of democratic control of corporations has been Richard Grossman. Now, with Ward Morehouse, Grossman has started a new project called the Program on Corporations, Law and Democracy (P.O. Box 806, Cambridge, Mass., 02140; phone: (508) 487-3151; E-mail: poclad@aol.com). The new project goes beyond mere charter revocation as a strategy for making corporations more accountable. Recently Grossman and Morehouse issued a list of "Suggestions for an Agenda for Action in Arenas WE Define" --tactics for changing the behavior of corporations, going beyond corporate charter revocation. 

Here they are:
** Rechartering corporations to limit their powers and make them entities subordinate to the sovereign people, by, for example, granting charters for limited time periods, requiring approval by communities and workers to continue in existence, making corporate managers and directors liable for corporate harms, etc.
** Reducing the size of corporations by breaking them up into smaller units with less power to undermine elections, lawmaking, judicial proceedings and education; restricting size and capitalization of corporations; prohibiting one corporation from owning another corporation (some of which was accomplished by the Public Utility Holding Company Act of 1935).
** Establishing worker and/or community control over production units of corporations to protect the "reliance interest" and other rights of workers and communities. This can be done by writing rules directly into corporate charters, such as prohibiting the hiring of replacement workers during strikes, requiring independent health and safety audits by experts chosen by workers and affected communities, and banning use of deadly chemicals, such as chlorine.
** Initiating referendum campaigns, or taking action through state legislatures --and in the courts --to end constitutional protections for corporate "persons" and to require state attorneys general to undertake charter revocation or rechartering actions when petitioned by citizen groups.
** Prohibiting corporations from making campaign contributions to candidates in ANY elections, and from lobbying ANY local, state and federal government bodies.
** Stopping extortion and "subsidy abuse" by which large corporations rake off billions of dollars from human taxpayers through direct pay-offs and tax breaks.
** Launching campaigns to cap salaries of corporate officials and tie them to a ratio of average compensation levels of production workers (say, 5:1 or 10:1), to gain greater transparency in corporate decision-making, and to end corporate tax deductions for legal fees, advertising and fines.
** Encouraging worker and community-owned and -controlled cooperatives and other alternatives to conventional limited liability profit-making corporations by using law and the public treasury.
** Preparing a model state corporation code based on the principle of citizen sovereignty and campaigning for its adoption, state-by-state.
** Invigorating from the grassroots up a national debate on the relationship between public property, private property (including future value), and the rights of natural persons, communities and other [non-human] species when they are in conflict, and on the role of the law in resolving such conflicts in a democracy.
Richard Grossman said recently, "In about 10 states, people are looking into corporate law and histories --including how their state constitutions and state corporation codes once defined corporate rights and activity with great precision. People are learning to demystify the law, looking for organizing handles they can use to take rights and powers away from corporations.


"The large corporation is truly the dominant institution of our era. It creates dependence and feelings of helplessness, while provoking great anger. Where people have been resisting corporate harms, where corporations are overtly tyrannical, people ARE reflecting on the nature of corporations. They ARE discussing citizen sovereignty and corporate abolition. Surely we can turn people's anger away from the symbols of government and towards our real governing bodies--giant corporations. Surely we can build a powerful political movement to disempower corporations and to govern ourselves," Grossman said.
                                                                   
 --Peter Montague

===============

[1] "New Pennsylvania Environmental Group Seeks to Revoke Charters of CSX Corporation and WMX Technologies for Environmental Transgressions," CORPORATE CRIME REPORTER June 26, 1995, pgs. 1-5.

Descriptor terms: corporations; democracy; accountability; wmi; wmx; csx; community environmental defense fund; celdf; thomas linzey; delaware; west virginia; de; wv; charter revocation; corporate charters; richard grossman; ward morehouse; program on corporations, law and democracy; strategy; tactics; cooperatives;

Footnote: fn01: http://www.celdf.org/