The rise of MNCs

At this stage of the course, in order to understand how the corporations act, and the impact of their actions in the society we saw "The Corporation". The Corporation is a documentary directed by Mark Achbar and Jennifer Abbott, who goes into the psychopathic business world. Is based on the book entitled 'The Corporation, the pathological pursuit of profit and power', by Joel Bakan.

The documentary begins by explaining the enormous power that was given to corporations by giving them the rights of a person. But if corporations have the same rights as a person, what kind of person is the corporation? Over the years we have seen the last of these entities interest was wealth, profit above the good of the society, people use to describes corporations as constructive members of the society, because they produce goods we need for daily life, besides offering employment to the community. But we can’t forget that the primary goal of a Corporation is the money, they have a profit motivation.

Every action implies a sequel, but who bears the consequences of the actions of corporations? Experts use the word "externality", Milton Friedman describes it as the effect of a transaction between two parties on a third party who is not involved in the transaction. One of the interviewees summarized this way of behaving in a simple sentence, but worrisome, " let somebody else deal with the problems the corporation creates… let someone else take care of it".
The corporation can then be described as an “externalizing Machine”. The documentary describes cases in which externalities listed as: Harm to workers (Union busting, layoffs, factory fires, sweetshops), harm to human health (with dangerous products, emission of pollution and toxic waste, and using synthetic chemicals), harm to animals (through habitat destruction, factory farming and experimentation) and harm to biosphere (through clear-cuts, CO2 emissions and nuclear waste). The damage done to the world is becoming the only legacy for future generations.

But going beyond the documentary assesses the behavior of corporations, and as these are considered as a legal person, as his acting, and using a personality diagnostic checklist by the World Health Organization, it is concluded that corporations have a psychopath behavior. This conclusion begs the question, Who controls the balance of corporate behavior?.

Another important issues highlighted in the documentary is privatization, the way in which public goods such as water, are being privatized and managed by corporations. The directors of the documentary lead us to ask whether we can trust in a corporation to manage public goods through the Pfizer case. Pfizer's policy is to "make the community better” therefore has its own traffic private transit security system. When there is a demonstration of this system for the cameras, the results are counter to the policy described.

Many of the cases discussed in the documentary are serious and disappointing; to see how the power is given to corporations have been allowed to act as they wish. But people have begun to notice, there are critical views that are raising their voice against the corporations and the indiscriminate use of resources. The union of the people is perhaps the only way to stop the psychopaths.

To view the documentary clicks the following link:
http://www.youtube.com/view_play_list?p=FA50FBC214A6CE87

Questions

1. Do Corporations pursue today other interest or the "bottom-line" remains as their single priority? what are the factors influencing the corporation’s objectives and goals?

“It is difficult to write about the growth of multinational corporations (MNCs)3 without yielding to stereotype. On the one hand, there is the image of the modern business enterprise, staffed by highly competent managers, working at the cutting edge of technology to overcome logistical challenges and bring improvements to human life. On the other hand is the increasingly pervasive picture of the transnational corporation as the behemoth of modern life — large and powerful enough to control governments while engaging in big brother social control of consumers and unchecked exploitation of people in developing countries. Both stereotypes invoke the large size and important economic impact of MNCs.” (1)

So it is difficult to answer this question, especially after seen the documentary, because it expose a very negative perspective. I believe that as many of the corporations in the world respond to what Michael Moore says, that at the end corporations seek to make as much money as possible and the real problem is the profit motivation and to understand when enough is.

But I think the desire of consumers to learn more about the products they consume or the goods and services that are part of daily life are exerting significant pressure, forcing corporations to build processes and protocols aimed at social responsibility and sustainable development.

“Chocolate manufacturers in Europe devised ethics codes and built model factories to the benefit of their workers, supplied health and adult education facilities and reduced the length of working week.In the USA pharmaceutical such as Merck developed Codes of conduct, which underlined the Corporation’s goal to serve public health. These two are just a sample of Corporations’ respect for constituents other than shareholders” (2)

Without a doubt I think we are learning from past mistakes, and there are corporations that are changing their ways of act.

2. The film focuses on the negative consequences that the Corporation’s behavior cause to the environment, to human health and animal life. Discuss from a critical perspective, the possible benefits and arising from the actions of MNCs for these 3 groups.

Some of the analyses made by the interviewees have in common the concern to know what we are leaving to future generations.

The documentary shows several images that reveal the damage that corporations are causing to the environment, such as the indiscriminate abuse of exhaustible resources like water and oil, and use of pesticides and toxic substances have caused havoc on the flora and fauna of the world. Global warming, the extinction of species, starvation and birth defects are just some of the consequences we face.

“In recent years, MNCs have increasingly been accused of engaging in polluting or environmentally degrading activities through their subsidiaries, particularly in developing countries. Human rights groups and local communities have done much to highlight instances of pollution or illegal resource depletion, and often allege that these activities are linked to MNC collaboration in violating human rights”. (3)

Privatizing public elements and turn them into a private business has left a big profit corporations. Animal testing may have led corporations to great discoveries, and the dismissal of workers may have saved many companies from bankruptcy. No clutch, endangering the life and the world is destroying the future for all.

3. Do you think a corporation should be considered a "person"? discuss the implications and limitations of granting such legal existence to corporations.

I do not think corporations should have the same rights as a person. As Dr. Vandana Shiva (Physicist, Ecologist, feminist and seed activist) says in the documentary, the Corporation is not a person, because it doesn’t think, people think, the individuals of the corporation are those who think. Corporations do not have feelings, do not breathe and think, how they can be considered part of "us".

No doubt the corporations gain too much power when they are granted the same rights as a person. But a corporation faces the same consequences as a human being to commit a crime?
When we have seen a corporation in jail, a corporation facing the death penalty? or otherwise, upon the coming of economic crisis in the United States some corporations receiver government financial aid even though it was these same corporations were the ones put at risk the economy of a country, the same thing would happen if a citizen threatening the stability of a country, would receive economic aid from the government?

This makes me conclude that we can not give the same treatment to corporations and individuals because simply they are not the same.

References

(1) Michael Anderson (2002), Transnational Corporations and Environmental
Damage: Is Tort Law the Answer?. Pag 2

(2)Elena F Pérez Carrillo (2007) Corporate Governance: Shareholders’ Interests’ And Other Stakeholders’ Interests. Universidad Santiago de Compostela.

(3) Michael Anderson (2002), Transnational Corporations and Environmental
Damage: Is Tort Law the Answer?. Pag 4

Kline, John M. 2006. "MNCs and Surrogate Sovereignty." Brown Journal of World Affairs 13, no. 1: 123-133.

The Corporation, a documentary made by Mark Achbar and Jennifer Abbott. http://www.youtube.com/view_play_list?p=FA50FBC214A6CE87

Images taken from:

http://wideawareness.files.wordpress.com/2010/02/41980_the_corporation.jpg
http://www.cccb.org/rcs_gene/07_corporation_1.jpg