The Corporation: The Pathological Pursuit of Profit and Power
by Joel Bakan
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Book Summary Information
Author: Joel BakanEdition: Paperback
Published: 2005-03-01
ISBN: 0743247469
Number of pages: 240
Publisher: Free Press
Book Reviews of The Corporation: The Pathological Pursuit of Profit and Power
Book Review: A polarized book in a polarized era - more perspective needed
Summary: 1 Stars
The decade of the 2000s is a good time in which to pose the "criminal corporation thesis". Not since the "Gilded age" has there been such an avalanche of ethical lapses, wrongdoing, and greed in the business world in the United States. It's extremely painful for someone who grew up in a different generation to witness this in the papers. I am also angered that the police in my city declared themselves powerless against con artists even when I set up opportunities to trace their calls.
However, I believe that Bakan's book has a faulty and damaging perspective. Since no one else has stepped up to the plate - and that may be a symptom of the times, too, I'll give a try.
I propose a different suggestion about corporations: that they are a product of their times and of the people that join or lead them. What times do we live in?
Consider that the federal government demands taxes on gambling winnings from people who live in states where gambling is illegal - but does not reveal them to the states. In turn states seek taxes from illegal aliens - but commit to not disclose their identities to the fed.
There are innumerable term paper sale and exchange sites on the web that help students plagiarize their course work - and this is considered chic.
Prominent literary media personalities were discovered to have plagiarized literary productions.
The President of the Teacher's Union in Washington DC was indicted for embezzling a million $ in union funds, and a top official in the DC School board misappropriated multi millions of dollars.
A new policy cracking down on internet providers who permitted pedophiles to use their sites was protested as a violation of First Amendment Rights.
There are organizations of virusmakers who celebrate their skills in hacking government computers and crippling hundreds of thousands of personal computers.
The organized gay movement demanded that boy scout troups allow avowed gay scoutmasters - think of the Catholic gay priests or in terms of the girl scouts having virile young heterosexuals as their scoutleaders- When the scouts refused the Human Rights Campain and other activists maneuvered for the scouts be denied churches, schools and businesses to meet - and ultimately went to the Supreme Court to try to force compliance.
Fortunately all of American society isn't like this - and neither is business. Fidelity Mutual, the largest mutual fund brokerage in America, run by Ned Johnson, got raised eyebrows from some people in the financial community when it ruled that clients who churned their holdings would be asked to withdraw their funds (because these were large investors) Apparently none of fidelity's many funds dealt in subprime mortgages. Moreover, in Denmark, Norway, and Sweden corporate scandals of the kinds we have seen are practically nonexistent. That's because the rest of society is that way too. In the last Reader's digest "wallet test" I recall Denmark was tops with nine out of 10 loaded wallets returned.
Now, the attraction point. Google Co.'s founders have a motto: "Do no evil". They have been extremely successful in attracting the brightest, ethical people. Microsoft started life as a nasty outfit that gained dominance through unsavory methods. They have not attracted the same quality and have been unable to overcome Yahoo or even upstarts like Mozilla.
The point is that demonized corporations are not likely to attract the kinds of younger leaders that can improve their behavior
We went into a downward slide after WWII, which is the subject of a book I'm completing. If you are interested in more hang on. There ARE ways to do better but too much cynicism is not a constructive way.
Summary of The Corporation: The Pathological Pursuit of Profit and Power
Over the last 150 years the corporation has risen from relative obscurity to become the world's dominant economic institution. Eminent Canadian law professor and legal theorist Joel Bakan contends that today's corporation is a pathological institution, a dangerous possessor of the great power it wields over people and societies.In this revolutionary assessment of the history, character, and globalization of the modern business corporation, Bakan backs his premise with the following observations:
- The corporation's legally defined mandate is to pursue relentlessly and without exception its own economic self-interest, regardless of the harmful consequences it might cause to others.
- The corporation's unbridled self-interest victimizes individuals, society, and, when it goes awry, even shareholders and can cause corporations to self-destruct, as recent Wall Street scandals reveal.
- Governments have freed the corporation, despite its flawed character, from legal constraints through deregulation and granted it ever greater authority over society through privatization.
But Bakan believes change is possible and he outlines a far-reaching program of achievable reforms through legal regulation and democratic control.
Featuring in-depth interviews with such wide-ranging figures as Nobel Prize winner Milton Friedman, business guru Peter Drucker, and cultural critic Noam Chomsky, The Corporation is an extraordinary work that will educate and enlighten students, CEOs, whistle-blowers, power brokers, pawns, pundits, and politicians alike.
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