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Originally Posted by 450SEL6.9  Eni, who claimed that the one and only role of a corporation is to make profit for the stockholders? I certainly didn't. The quote from my earlier post that you used was, "It is not the role of business and commercial enterprises to distribute the wealth they create to anyone other than their stockholders." How does that become, "The one and only role of a corporation is to make a profit"? Overextension of the original statement, don't you think? |
No. "The wealth the corporations create" is the net profit. And the net profit is distributed to shareholder - via dividends.
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Corporations have capital that can move anywhere on the touch of a button. If a state suddenly becomes inhospitable to a corporation, the corporation can move. Now, this does not always work. Many resource developments and mines in politically unstable regions can't be picked up and shipped back home. However, the ongoing capital needed to fully develop those mines can be shut off and redeployed. Similarly, if a businessman owns a widget factory in American and he doesn't like that corporate tax situation, he can do multiple things with the business. He can move corporate HQ to Bermuda, while keeping the plant. He can move HQ offshore, build a new plant in China or even outsource to China. In the meantime, the corporation could pay a lot less tax and radically lower its cost structure. I think corporations are less tied to the state/nation they are domiciled it today than they have ever been.
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And that situation is so scary!
Eg. the relations between states are regulated by some international laws & declarations (put bilateral agreements aside). There is even UN organization where individual states make agreements & decisions, and are obligated to such agreements & decisions otherwise they can face sanctions (economic or even military ones).
And here we have corporations acting globally - acting beyond state borders & competence & jurisdiction. Not obligated to any international laws & declarations.
Corporation - an amoebic organization. More flexible than any state. More powerful.
IMO some big corporations shoud get a status of "subject of international importance" and get a membership in UN. So they will be obligated to some international laws & declarations made by UN.
Right now corporations are "free-floating" subjects with great power - migrating from less pleasant environment to more friendly environment (read: from state to state). And with their enormous power influencing the state inner affairs & lives of citizens there. And many times influencing inter-state (aka foreign) relations.
Yet I'm afraid we are too late ... Unless there will be more synchronized interventions by several states to take more control over big corporations. Yet this a bit idealistic expectation since we know every government is "purchasable" - prone to corruption, and willing to please corporation in exchange for some national & even more their personal benefits.
Unless you are eg. Hugo Chavez.
