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Blog item: How Corporations Behave 101

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7 comments, last: Nov-16-2008   Add a comment   Author:  PT (Nov-10-2008)    Play a Video
Categories: Economic/Financial, Philosophical & Quality of Life

The Corporation: the nature of the beastI grimace every time I hear a politician say "Get the government off our backs", and the phrase that is now out of circulation at least for a little while: "Follow the wisdom of the marketplace".

We are aware of how drug (adrenaline) crazed traders brought down the world financial system with synthetic derivatives and credit default swaps.  But here is part of a more recent article that a friend of mine from EcoChildsPlay.com pointed out.  The article appeared at EatDrinkBetter.com:

Tyson Injects and Feeds Antibiotics into "Raised without Antibiotics" Labeled Chicken

The second largest chicken producer in the United States has been lying to consumers.  Tyson Foods has been claiming chicken as "Raised without Antibiotics" that has been injected with drugs before hatching.

Tyson has been tricking Americans and bending USDA rules about truthful labeling regarding antibiotics in poultry.  The company has spent tens of millions of dollars in advertising its chicken as "raised without antibiotics" this year.  Tyson has admitted to injecting eggs with antibiotics, and the USDA has responded by asking the company to stop using the antibiotic-free label. Tyson's has filed a lawsuit to keep using the label, claiming the USDA's rules do not apply before the second day of life.


Tyson also admitted to using another "anti-microbial" agent on hatched chickens, which was also controversial and questioned by the FDA.

Well, unfortunately all this does not surprise me in the least.  I remember one eye opener (literally) that came out in a study some 15 years ago: Dunkin Donuts was regularly using caffeinated, normal coffee in what it claimed was decaf coffee.

Why would they do that?  I don't know of the inside evidence concerning their reasons, but three reasons do come to mind: 1) caffeinated coffee tastes better, so DD would get credit for having great decaf, 2) the caffeine in coffee is addictive, so those who are trying to cut back or quit coffee by having decaf would find themselves strangely continuing to be addicted, and 3) it is easier to stock one product than two products.

Of course there have been numerous examples of corporate malfeasance over the years and decades, and even an excellent documentary about the roots of the problem, a film called unsurprisingly, "The Corporation", derived from a book The Corporation: The Pathological Pursuit of Profit and Power by Joel Bakan.

What does all this have to do with PlanetThoughts and PlanetThoughts.org?  This article is my effort to say to my readers that unless a green behavior directly aligns with short-term profits, large corporations are driven (legally and by habit) by the short-term bottom line and will ignore environmental, health, and economic consequences of their actions. Corporations will lie and cheat as much as they can while either staying just this side of the law, or wandering into the other side of the law but with confidence and hope that they will not get caught.

Is this a surprise to anyone reading here?  I think if you have been reading good news sources and are over, say, 30 years old, or attended a good college with some quality history or sociology classes, you would know about all this.  It is for the rest of you, who are not sure what to make of corporations, that I recommend great caution when promises are made.  Have a lot of doubt when those commercial interests, or those paid secretly by the commercial interests, claim to have the benefit of the "average" person at heart.  Have strong doubts when the commercial interests claim that government is big, incompetent, and most likely run by Socialist bureaucrats who are eager to start throwing bombs (note the Obama / Ayers smear as an example of this).

I am in business (writing software and consulting about technology), and I like capitalism pretty much.  As I have said before, what I dislike strongly is out of control, unregulated, immoral capitalism that has transmuted, like a cancer, into an agent that attacks the members of society purely for its own profit.  What I dislike is a philosophy that would have an each-person-for-himself philosophy with absolutely no effective safety net.  The lack of universal health insurance in the United States is just the most obvious example of the problem.

With that understanding of the typical large corporation, what person in her or his right mind, and in good conscience, would trust environmental decisions to the recommendations of General Electric or to the coal industry or to the oil companies?  We can talk to them a bit, that is fine, and then check with environmentalists and with scientists, and dig in for the facts, until the real picture emerges and guides policy.

Hopefully that is the process that is now starting in our new, soon-to-be administration.  Let's see what happens; we will know very soon what the new direction will be.

Related PlanetThoughts.org reading:
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  The Eight Green Steps to Solartopia (May-28-2009)
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  Reinventing Everything: Developing Your Company'... (Sep-30-2008)
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  Government Marketing of Organics - in the EU (Aug-4-2008)
  Are We Enron? Plea for a New Economy (May-22-2008)

Click one tag to see readings related specifically to that tag; click "Tags" to see all related readings
  
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Comment by:  Wavehunter (William Coffin) (Nov-16-2008)   Web site
I agree that the worst corporations are the biggest ones. There are lots of small companies that do a good job for their communities - whether that be defined as their neighbourhood or the wider world. Unfortunately, however, these companies are swimming against the tide: the capitalist system is a corrupting force working against their continued good deeds. If a small business needs a loan, the bank will ask bottom line questions and care little whether the business is socially beneficial.

With luck the tide is now turning against this system and I believe enormous change will come far more quickly than the millennia you suggest. We are at a point of conjuncture between peek oil, global warming, the credit crisis, the food crisis and population growth, and it seems clear that the near future will be quite different from the recent past. The direction of change is harder to predict and depends greatly upon whether good people are active or passive.
  
Comment by:  PT (David Alexander) (Nov-14-2008)   Web site

I would like to add something here: this rather negative view of corporations that I stated in the article applies primarily to large, public corporations -- those that issue stock -- because they are controlled by groups of people, the stock holders and their representatives on the boards, whose common motivation, and legal structure, is to maximize profit with little or no regard for any other result.

Those who have dived head-first into that poor substitute for a philosophy called maximizing the bottom line, have over time further rationalized it by saying that the free markets are the most efficient generators of wealth, and that the markets self-correct to everyone's benefit. Alan Greenspan had the integrity recently to apologize for his making that assumption for the last 30 years.

I wish all the finance leaders would come clean and re-think what we are doing with our economy when we fight against oversight and regulatory rules, rules whose intent and effect are to keep the positives of capitalism and innovation, while protecting against their abuses.
  
Comment by:  PT (David Alexander) (Nov-14-2008)   Web site

We people seem to get wiser when we become less wealthy - and then sink back into ignorance when times are easy; it is part of our current human nature and culture. Ultimately people need to stay mindful no matter what the circumstances are. We are talking about an evolution of society that could last 100,000 years or more. If we survive the next few hundred years, we may get to that point you describe, in that distant future! What do you think?
  
Comment by:  Wavehunter (William Coffin) (Nov-13-2008)   Web site

It seems clear that the market rewards behaviour that is hugely damaging both socially and environmentally. The market incentive to work is money, which only functions as an incentive if consumption is the goal. It has been shown that consumption (beyond the basic needs and a little for security) does not bring happiness and causes degradation and inequality, but because consumption is the basis of capitalism this message is drowned out by ubiquitous advertising.

The earth is already straining to sustain the current world population and in the future won't be able to afford to support the unproductive. But by this term I don't mean those on state benefits (they are a tiny part of the problem): I mean those that receive income simply by owning things, often inherited things, and sitting by their pools sipping Martinis. Or those whose jobs benefit nobody on aggregate. For example, if I could get 10% of people to switch from Coke to Pepsi, Pepsi would pay me handsomely; yet I would have achieved nothing! In North America and Europe there are millions of 'zero sum' jobs like this, but hopefully this number will be dropping with the current recession.

A cartoon I saw today sums this up fairly well:
http://www.leftycartoons.com/a-brief-guide-to-what-society-values/

I look forward to the day when greed is seen for what it really is: a perversion of human nature. In my child's lifetime, perhaps, the conatural force that even today drives people to give presents to their families or donations to charities or to write articles for Wikipedia (all done in spite of the lack of personal gain) will become the motor for a better society.
  
Comment by: Steven Earl SALMONY (Nov-13-2008)   Web site

Category 4 financial storm can be seen on the horizon.

$6+ Billion in bonuses for Goldman Sachs.

$6+ Billion in bonuses for Morgan Stanley.

$66 billion in bonuses are being set aside for the 'engineers' who perpetrated 'the storm' in the financial system and the real global economy.

These monstrously greedy people in dark, pin striped suits who have pillaged the capitalist system and ruined humanity's political economy by turning it into a gambling casino and stealing its wealth for themselves and their minions are the same people who are now warning honorable people not to dismantle the global economy.

What is wrong with this picture?

Steven Earl Salmony
AWAREness Campaign on The Human Population,
established 2001
http://sustainabilityscience.org/content.html?contentid=1176
  
Comment by:  PT (David Alexander) (Nov-10-2008)   Web site

About capitalism - fair enough. From the little I know about it, I like the European or even Scandinavian (yes, I know they are in Europe!) method, which some would call socialism. Since there is still plenty of chance for those with creative energy to set their own lifestyle, I think it is capitalism - on the other hand, a generous baseline of support is also provided by the government for those who are mentally or physically ill, injured, or just very unlucky - or lazy, I suppose.

So we may agree; I like there to be some moderate incentive to create, which capitalism offers, but not so out of proportion that those people who are less competitive become the outcasts of society.
  
Comment by:  Wavehunter (William Coffin) (Nov-10-2008)   Web site

I agree 99%. (I'm just not such a fan of capitalism.) Of course, what the corporations get away with in developed countries is nothing compared to their crimes in the Third World. From mining to fizzy drinks to palm oil, the activities of some multinationals are tantamount to social and environmental terrorism.

  
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About author/contributor Member: PT (David Alexander) PT (David Alexander)
   Web site: http://www.insightandenergy.com

Member: PT (David Alexander) My lifelong pursuit, since age 18, has been to live more fully and find wisdom. This has involved studies with Zen masters, Tai Chi masters, and great psychotherapists while achieving my license as a gestalt therapist and psychoanalyst.

Along the way, I became aware of how the planet is under great stress due to the driven nature of human activity on this planet.

I believe that the advancement of human well-being will reduce societies addictive behaviors, and will thus also help preserve the environment and perhaps slow down the effects of global warming and other major threats to the health of human societies.

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