Joel Bakans Argument in The Corporation - Book Report/Review Example

The corporation is a book ed by Joel Bakan, a filmmaker, and a law at the of British Columbia, the book was published in February 2004; it explores the political, economic, and the social facets of corporations. The book is an account of reform – guided by deep and wide research – giving insider views and authoritative pointers about the entity of the corporation. The book revolves around the argument that – as an economic and legal entity – the corporation is fundamentally, pathological in nature: the corporation prioritizes the profit motive above all accountability and social value standards. Bakan goes ahead to point out that recent changes, particularly those related to corporate scandals are pushing companies towards the adoption of social responsibility. In supporting his views, he builds upon the claims that, corporations are allowed by legal principles, to elevate their interests above those of others, which encourages them to exploit others without regard for moral or legal directives (Bakan 56). Further, he bases his views on the claim that the corporation’s unchecked self-interest abuses the rights of shareholders, individuals, and exploits the environment – which could cause the self-destruction of the corporation. Other claims presented by Bakan include that governments have renounced the need to control the corporation, regardless of its defective character – by allocating it freedom from legal restraints – through the processes of deregulation and privatization. Bakan views that privatization offers the corporation immense authority over the society (Bakan 72-73). In conclusion, Bakan argues that the structural failures in many corporations can be remedied through far-reaching reform – through imposing democratic control and legal regulation (Bakan 79). Discussion The basic premise of the book holds that, the corporation, which is considered a legal person under legal standards, can only be a psychopath, as evident from its characteristics and the personality it projects. In supporting the view that the corporation can only qualify to be a psychopath, Bakan argues from a psychologist’s perspective that the legal person of a corporation can be attributed to a number of personality traits (Bakan 56). First, the corporation would be irresponsible, as it subjects other entities: shareholders, individuals and the environment at risk, throughout the pursuit for its goals. Bakan’s idea that the corporation is irresponsible is supported by Coors and Winegarden (2005), where they point out that focusing on pleasing all stakeholders will drive the corporation out of business. Bakan, also points out that the corporation is manipulative, as it manipulates the different stakeholders, during the pursuit for the goals it sets to realize. Bakan argues that the corporation is reckless, as it does not assume responsibility for its own actions, especially when the actions are negative. Coors and Winegarden (2005) support Bakan’s ideas, arguing that the corporation is simply a reflection of the priorities and the demands of its consumer population, some changes in its outlook results from a change of the demands of its consumers. This shows that the corporation manipulates its stakeholders and the environment, to ensure that their interests conform to its struggle to meet the changing consumer needs. The recklessness of the corporation is depicted by Coors and Winegarden (2005), who argue that all CSR efforts are merely corporate advertising that seeks to increase consumer knowledge of the corporation’s products. Bakan presents the argument that the corporation is remorseless, as it does not show any remorse, in the cases where it has done something that is perceivably wrong (Bakan 80). Moreover, corporations are grossly remorseless, from the case of Shell Nigeria, which is releasing uncontained poisonous gases into the atmosphere, making it one among the worst pollution-causing agents in the world. The remorselessness of the corporation was exhibited; according to Achbar et al. (n.d), by the company’s opposition towards Ken Wiwa and eight other activists – after they opposed the operations of the shell company in the Niger Delta. Bakan argues that the corporation is also a psychopath, in its very nature, as it deals relates with others in a superficial manner: it relates with other parties, stakeholders, and society in ways that do not reflect their real values. This view of Bakan is supported by Achbar et al (n.d), who argue that corporations invest in perception management, in order to ensure that they keep their businesses alive. Achbar et al (n.d) point out that Lucy Hughes, states that the “nag factor” is a strategy used by corporations, during the designing of promotions and advertisements, to ensure that children nag their parents for the products being advertised more effectively. Lucy Hughes adds that the “nag factor” is a game that corporations play, towards manipulating the needs of the consumers, so they can buy their products. This attribute shows that their dealings, in general, are superficial – as they project value to the customer, while in the real sense pursuing the creation of a market, through appealing to their changing needs and wants (Bakan, 2004). Bakan notes that not all corporations are psychopaths, but the organizational structure of corporations is what makes their actions incline towards those of psychopaths. Primarily, the structure of the corporations insists on the single goal of increasing profits and escalating share value, while giving other areas secondary role. Bakan’s argument that the corporation is primarily, an entity seeking monetary value is supported by Achbar et al (n.d), which explains the case of Steve Wilson and Jane Akre, who were fired by Fox News after declining the demands of the company, to water down an account written about rBGH. The issue at hand was the harmful effect of the milk produced by the cows administered with the chemical – which reduces human resistance to diseases. The corporations involved in the saga were Monsanto, the manufacturer of rBGH and FOX news. The particular case shows the insensitivity of the two corporations, as Monsanto – knowing the effects of the chemical – threatened FOX news, in the case it lets the news out to the public (Achbar et al n.d). FOX news, on the other hand, sought to protect its welfare by threatening the two investigative journalists, who refused to disregard the story, which led to the loss of their jobs. Therefore, the case shows that both corporations were largely motivated by the need to increase profits and swell the value of their shares, regardless of the damage caused by the products on the users of the product. Bakan, in concluding the discussion on the flaws of the current corporations and the structure that houses it, proposes that the solution will not be ending the activities of corporations or the business model as a whole. However, he proposes the need to subject their existence to laws, and places emphasis on the need to give the same laws, power to dissolve the corporation, in the case the situation warrants that. In maintaining the view, Achbar et al (n.d) note the case of a strategic partnership between IBM and Nazi Germany, which was mainly a profit-making effort, employed due to the lack of democratic rule. Bakan insists that there is a need for the law to guide the structure, expressing exactly what it can and what cannot do – based on legal constructions – where necessary, controlling its power under a functional democracy (Bakan, 2004). In support of the idea, Achbar et al (n.d) note the case of Bolivia, where a corporation brought in to privatize the water system by the government was fought by the citizens. The case demonstrates the need to subject the operations and the functionality of corporations to democratic rule, in order to ensure that they act in the interest of the majority. Bakan proposes stronger regulation of corporations by the government, developing a strong public sphere, improving political democracy, and limiting market fundamentalism (Bakan, 2004). Conclusion The corporation is a book authored by Joel Bakan, and published in 2004; the book explores the economic, social and the political aspects of corporations: it accounts for the need for reforms in the operations, the entity and the control of corporations. Bakan argues that the corporation prioritizes profit making above all standards of accountability and social standards. However, he notes that the increasing need to engage in CSR has forced many corporations to forge care for the environment, society and stakeholders, although most of the CSR efforts are corporate advertising strategies. In supporting his views, he presents the claims that corporations are psychopathic entities, which are characterized by the following characteristics: irresponsible, manipulative, remorseless, reckless, and superficial. Bakan’s ideas are supported by other writers like Coors and Winegarden and Achbar et al., showing that corporations should be controlled by the legal system – if they are to operate without exploiting others and the environment. References Achbar, M., Abott, J., and Bakan, J. (n.d) “The Corporation: A film by Mark Achbar, Jeniffer Abbott & Joel Bakan”. Metrodome, 3-10. Retrieved from http://hellocoolworld.com/files/TheCorporation/TheCorporationPressNotes2.pdf Bakan, J. (2004). The Corporation: The Pathological Pursuit of Profit and Power. Key West, FL: Free Press. Coors, A., and Winegarden, W. (2005) “Corporate Social Responsibility—or Good Advertising?” Regulation, 10-11. Retrieved from http://www.cato.org/sites/cato.org/files/serials/files/regulation/2012/8/v28n1-noted.pdf Read More