Tag Archives: corporations

Is Walmart Wiccan? Is BestBuy Baptist? Is McDonalds Methodist?

So much for the Roberts Supreme Court. Conservatives would suggest that the court is intent on protecting the Constitution from assault by progressive liberals and upholding its libertarian conservativism. Yet, protections of and for the individual seem to have taken a backseat to recent rulings that promote corporate power — a somewhat new invention; perhaps, none more so than recent decisions that ruled corporations to be “people”. But the court is not standing still — not content with animating a business with lifeblood, soon, the court is likely to establish whether corporations have a religious spirit as well as individual sentience. Sticks of oxymoronic progressivism.

From the Washington Post:

If you thought this “corporations are people” business was getting out of hand, brace yourself. On Tuesday, the Supreme Court accepted two cases that will determine whether a corporation can deny contraceptive coverage to its female employees because of its religious beliefs.

The cases concern two of the most politically charged issues of recent years: who is exempted from the requirements of the Affordable Care Act, and whether application of the First Amendment’s free speech protections to corporations, established by the court’s 2010 decision in Citizens United, means that the First Amendment’s protections of religious beliefs must also be extended to corporations.

The Affordable Care Act requires employers to offer health insurance that covers contraception for their female employees. Churches and religious institutions are exempt from that mandate. But Hobby Lobby, a privately owned corporation that employs 13,000 people of all faiths — and, presumably, some of no faith — in its 500 craft stores says that requiring it to pay for contraception violates its religious beliefs — that is, the beliefs of its owners, the Green family.

In a brief submitted to a federal court, the Greens said that some forms of contraception — diaphragms, sponges, some versions of the pill — were fine by them, but others that prevented embryos from implanting in the womb were not. The U.S. Court of Appeals for the 10th Circuit upheld the Greens’ position in June in a decision explicitly based on “the First Amendment logic of Citizens United.” Judge Timothy Tymkovich wrote: “We see no reason the Supreme Court would recognize constitutional protection for a corporation’s political expression but not its religious expression.”

Tymkovich’s assessment of how the five right-wing justices on the Supreme Court may rule could prove correct — but what a mess such a ruling would create! For one thing, the Green family’s acceptance of some forms of contraception and rejection of others, while no doubt sincere, suggests that they, like many people of faith, adhere to a somewhat personalized religion. The line they draw is not, for instance, the same line that the Catholic Church draws.

Individual believers and non-believers draw their own lines on all kinds of moral issues every day. That’s human nature. They are free to say that their lines adhere to or are close to specific religious doctrines. But to extend the exemptions that churches receive to secular, for-profit corporations that claim to be following religious doctrine, but may in fact be nipping it here and tucking it there, would open the door to a range of idiosyncratic management practices inflicted on employees. For that matter, some religions have doctrines that, followed faithfully, could result in bizarre and discriminatory management practices.

The Supreme Court has not frequently ruled that religious belief creates an exemption from following the law. On the contrary, in a 1990 majority opinion, Justice Antonin Scalia wrote that Native Americans fired for smoking peyote as part of a religious ceremony had no right to reinstatement. It “would be courting anarchy,” Scalia wrote in Employment Division v. Smith, to allow them to violate the law just because they were “religious objectors” to it. “An individual’s religious beliefs,” he continued, cannot “excuse him from compliance with an otherwise valid law.”

It will be interesting to see whether Scalia still believes that now that he’s being confronted with a case where the religious beliefs in question may be closer to his own.

The other issue all this raises: Where does this corporations-are-people business start and stop? Under the law, corporations and humans have long had different standards of responsibility. If corporations are treated as people, so that they are free to spend money in election campaigns and to invoke their religious beliefs to deny a kind of health coverage to their workers, are they to be treated as people in other regards? Corporations are legal entities whose owners are not personally liable for the company’s debts, whereas actual people are liable for their own. Both people and corporations can discharge their debts through bankruptcy, but there are several kinds of bankruptcy, and the conditions placed on people are generally far more onerous than those placed on corporations. If corporations are people, why aren’t they subject to the same bankruptcy laws that people are? Why aren’t the owners liable for corporate debts as people are for their own?

Read the entire article here.

Is Your Company Catholic or Baptist?

Is your business jewish? Does your corporation follow the book of tao or the book of mormon or those of shadows (wicca) or yasna (zoroastrianism)? Or, is your company baptist, muslim, hindu or atheist or a practitioner in one of the remaining estimated 4,200 belief systems?

In mid-2012 the U.S. Supreme Court affirmed that corporations are indeed people when it ruled for Citizens United against the State of Montana in allowing unlimited corporate spending in local elections. Now, we await another contentious and perplexing ruling from the justices that may assign spirituality to a corporation alongside personhood.

Inventors of board games take note: there is surely a game to be made from matching one’s favorite companies with religions of the world.

From Slate:

Remember the big dustup last summer over the contraception mandate in President Obama’s health reform initiative? It required companies with more than 50 employees to provide insurance, including for contraception, as part of their employees’ health care plans. The constitutional question was whether employers with religious objections to providing coverage for birth control could be forced to do so under the new law. The Obama administration tweaked the rules a few times to try to accommodate religious employers, first exempting some religious institutions—churches and ministries were always exempt—and then allowing companies that self-insure to use a separate insurance plan to pay and provide for the contraception. Still, religious employers objected, and lawsuits were filed, all 60 of them.

A year later, the courts have begun to weigh in, and the answer has slowly begun to emerge: maybe yes, maybe no. It all depends on whether corporations—which already enjoy significant free-speech rights—can also invoke religious freedom rights enshrined in the First Amendment.

Last Friday, the 3rd U.S. Circuit Court of Appeals upheld the contraception mandate, rejecting a challenge from a Pennsylvania-based cabinetmaker who claimed that as a Mennonite he should not be compelled to provide contraceptive coverage to his 950 employees because the mandate violates the company’s rights under the free exercise clause of the First Amendment and the Religious Freedom Restoration Act. The owner considers some of the contraception methods at issue—specifically, the morning-after and week-after pills—abortifacients.

The appeals court looked carefully to the precedent created by Citizens United—the 2010 case affording corporations free-speech rights when it came to election-related speech—to determine whether corporations also enjoy constitutionally protected religious freedom. Writing for the two judges in the majority, Judge Robert Cowen found that although there was “a long history of protecting corporations’ rights to free speech,” there was no similar history of protection for the free exercise of religion. “We simply cannot understand how a for-profit, secular corporation—apart from its owners—can exercise religion,” he concluded. “A holding to the contrary … would eviscerate the fundamental principle that a corporation is a legally distinct entity from its owners.”

Cowan also flagged the absolute novelty of the claims, noting that there was almost no case law suggesting that corporations can hold religious beliefs. “We are not aware of any case preceding the commencement of litigation about the Mandate, in which a for-profit, secular corporation was itself found to have free exercise rights.” Finally he took pains to distinguish the corporation, Conestoga, from its legal owners. “Since Conestoga is distinct from the Hahns, the Mandate does not actually require the Hahns to do anything. … It is Conestoga that must provide the funds to comply with the Mandate—not the Hahns.”

Judge Kent Jordan, dissenting at length in the case, said that for-profit, secular corporations can surely avail themselves of the protections of the religion clauses. “To recognize that religious convictions are a matter of individual experience cannot and does not refute the collective character of much religious belief and observance … Religious opinions and faith are in this respect akin to political opinions and passions, which are held and exercised both individually and collectively.”

The 3rd Circuit decision creates a significant split between the appeals courts, because a few short weeks earlier, the Colorado-based 10th U.S. Circuit Court of Appeals ruled in favor of Hobby Lobby Stores Inc., finding by a 5–3 margin that corporations can be persons entitled to assert religious rights. Hobby Lobby is a chain of crafts supply stores located in 41 states. The 10th Circuit upheld an injunction blocking the contraception requirement because it offended the company owners’ religious beliefs. The majority in the 3rd Circuit wrote that it “respectfully disagrees” with the 10th Circuit. A split of this nature makes Supreme Court review almost inevitable.

The Supreme Court has long held the free exercise clause of the First Amendment to prohibit governmental regulation of religious beliefs, but a long line of cases holds that not every regulation that inflects upon your religious beliefs is unconstitutional. The Religious Freedom Restoration Act bars the federal government from imposing a “substantial burden” on anyone’s “exercise of religion” unless it is “the least restrictive means of furthering [a] compelling governmental interest.” The Obama administration and the judges who have refused to grant injunctions contend that the burden here is insignificant, amounting to a few dollars borne indirectly by the employer to facilitate independent, private decisions made by their female employees. They also argue that they are promoting a compelling government interest in providing preventive health care to Americans. The employers and the judges who have enjoined the birth-control provision claim that they are being forced to choose between violating protected religious beliefs and facing crippling fines and that free or inexpensive birth control is available at community health centers and public clinics.

Basically, the constitutional question will come down to whether a for-profit, secular corporation can hold religious beliefs and convictions, or whether—as David Gans explains here —“the Court’s cases recognize a basic, common-sense difference between living, breathing, individuals—who think, possess a conscience, and a claim to human dignity—and artificial entities, which are created by the law for a specific purpose, such as to make running a business more efficient and lucrative.” Will Baude takes the opposite view, explaining that the 3rd Circuit’s reasoning—that “ ‘corporations have no consciences, no beliefs, no feelings, no thoughts, no desires’ … would all prove too much, because they are technically true of any organizational association, including … a church!” Baude likens the claim that corporations can never have religious freedom rights to the claim that corporations—including the New York Times—can never have free-speech rights.

Part of the problem, at least in the case of Hobby Lobby and Conestoga, is that neither corporation was designed to do business as religious entities. It has been clear since the nation’s founding that corporations enjoy rights in connection to the purposes for which they were created—which is why the administration already exempts religious employers whose purpose is to inculcate religious values and chiefly employ and serve people who share their religious tenets. This is about companies that don’t meet those criteria. As the dissenters at the 10th Circuit observed, the fact that some “spiritual corporations” have some religious purposes doesn’t make every corporation a religious entity. And as professor Elizabeth Sepper of Washington University puts it in a new law-review article on the subject: “Corporations, as conglomerate entities, exist indefinitely and independently of their shareholders. They carry out acts and affect individual lives, and have an identity that is larger than their constituent parts. Walmart is Walmart, even when Sam Walton resigns.”

The rest of the problem is self-evident. Where does it stop? Why does your boss’ religious freedom allow her to curtail your own? The dangers in allowing employers to exercise a religious veto over employee health care are obvious. Can an employer deny you access to psychiatric care if he opposes it on religious grounds? To AIDS medications? To gelatin-covered pills? Constitutional protections of a single employer’s individual rights of conscience and belief become a bludgeon by which he can dictate the most intimate health decisions of his workers, whose own religious rights and constitutional freedoms become immaterial.

Read the entire article here.

Image courtesy of ThinkProgress.

Corporate R&D meets Public Innovation

As corporate purse strings have drawn tighter some companies have looked for innovation beyond the office cubicle.

[div class=attrib]From Technology Review:[end-div]

Where does innovation come from? For one answer, consider the work of MIT professor Eric von Hippel, who has calculated that ordinary U.S. consumers spend $20 billion in time and money trying to improve on household products—for example, modifying a dog-food bowl so it doesn’t slide on the floor. Von Hippel estimates that these backyard Edisons collectively invest more in their efforts than the largest corporation anywhere does in R&D.

The low-tech kludges of consumers might once have had little impact. But one company, Procter & Gamble, has actually found a way to tap into them; it now gets many of its ideas for new Swiffers and toothpaste tubes from the general public. One way it has managed to do so is with the help of InnoCentive, a company in Waltham, Massachusetts, that specializes in organizing prize competitions over the Internet. Volunteer “solvers” can try to earn $500 to $1 million by coming up with answers to a company’s problems.

We like Procter & Gamble’s story because the company has discovered a creative, systematic way to pay for ideas originating far outside of its own development labs. It’s made an innovation in funding innovation, which is the subject of this month’s Technology Review business report.

How we pay for innovation is a question prompted, in part, by the beleaguered state of the venture capital industry. Over the long term, it’s the system that’s most often gotten the economic incentives right. Consider that although fewer than two of every 1,000 new American businesses are venture backed, these account for 11 percent of public companies and 6 percent of U.S. employment, according to Harvard Business School professor Josh Lerner. (Many of those companies, although not all, have succeeded because they’ve brought new technology to market.)

Yet losses since the dot-com boom in the late 1990s have taken a toll. In August, the nation’s largest public pension fund, the California Public Employees Retirement System, said it would basically stop investing with the state’s venture funds, citing returns of 0.0 percent over a decade.

The crisis has partly to do with the size of venture funds—$1 billion isn’t uncommon. That means they need big money plays at a time when entrepreneurs are headed on exactly the opposite course. On the Web, it’s never been cheaper to start a company. You can outsource software development, rent a thousand servers, and order hardware designs from China. That is significant because company founders can often get the money they need from seed accelerators, angel investors, or Internet-based funding mechanisms such as Kickstarter.

“We’re in a period of incredible change in how you fund innovation, especially entrepreneurial innovation,” says Ethan Mollick, a professor of management science at the Wharton School. He sees what’s happening as a kind of democratization—the bets are getting smaller, but also more spread out and numerous. He thinks this could be a good thing. “One of the ways we get more innovation is by taking more draws,” he says.

In an example of the changes ahead, Mollick cites plans by the U.S. Securities and Exchange Commission to allow “crowdfunding”—it will let companies raise $1 million or so directly from the public, every year, over the Internet. (This activity had previously been outlawed as a hazard to gullible investors.) Crowdfunding may lead to a major upset in the way inventions get financed, especially those with popular appeal and modest funding requirements, like new gadget designs.

[div class=attrib]Read the entire article after the jump.[end-div]

[div class=attrib]Image courtesy of Louisiana Department of Education.[end-div]

Watch Out Corporate America: Gen-Y is Coming

Social scientists have had Generation-Y, also known as “millenials”, under their microscopes for a while. Born between 1982 and 1999, Gen-Y is now coming of age and becoming a force in the workplace displacing aging “boomers” as they retire to the hills. So, researchers are now looking at how Gen-Y is faring inside corporate America. Remember, Gen-Y is the “it’s all about me generation”; members are characterized as typically lazy and spoiled, have a grandiose sense of entitlement, inflated self-esteem and deep emotional fragility. Their predecessors, the baby boomers, on the other hand are often seen as over-bearing, work-obsessed, competitive and narrow-minded. A clash of cultures is taking shape in office cubes across the country as these groups, with such differing personalities and philosophies, tussle within the workplace. However, it may not be all bad, as columnist Emily Matchar, argues below — corporate America needs the kind of shake-up that Gen-Y promises.

[div class=attrib]From the Washington Post:[end-div]

Have you heard the one about the kid who got his mom to call his boss and ask for a raise? Or about the college student who quit her summer internship because it forbade Facebook in the office?

Yep, we’re talking about Generation Y — loosely defined as those born between 1982 and 1999 — also known as millennials. Perhaps you know them by their other media-generated nicknames: teacup kids,for their supposed emotional fragility; boomerang kids, who always wind up back home; trophy kids — everyone’s a winner!; the Peter Pan generation, who’ll never grow up.

Now this pampered, over-praised, relentlessly self-confident generation (at age 30, I consider myself a sort of older sister to them) is flooding the workplace. They’ll make up 75 percent of the American workforce by 2025 — and they’re trying to change everything.

These are the kids, after all, who text their dads from meetings. They think “business casual” includes skinny jeans. And they expect the company president to listen to their “brilliant idea.”

When will they adapt?

They won’t. Ever. Instead, through their sense of entitlement and inflated self-esteem, they’ll make the modern workplace adapt to them. And we should thank them for it. Because the modern workplace frankly stinks, and the changes wrought by Gen Y will be good for everybody.

Few developed countries demand as much from their workers as the United States. Americans spend more time at the office than citizens of most other developed nations. Annually, we work 408 hours more than the Dutch, 374 hours more than the Germans and 311 hours more than the French. We even work 59 hours more than the stereotypically nose-to-the-grindstone Japanese. Though women make up half of the American workforce, the United States is the only country in the developed world without guaranteed paid maternity leave.

All this hard work is done for less and less reward. Wages have been stagnant for years, benefits shorn, opportunities for advancement blocked. While the richest Americans get richer, middle-class workers are left to do more with less. Because jobs are scarce and we’re used to a hierarchical workforce, we accept things the way they are. Worse, we’ve taken our overwork as a badge of pride. Who hasn’t flushed with a touch of self-importance when turning down social plans because we’re “too busy with work”?

Into this sorry situation strolls the self-esteem generation, printer-fresh diplomas in hand. And they’re not interested in business as usual.

The current corporate culture simply doesn’t make sense to much of middle-class Gen Y. Since the cradle, these privileged kids have been offered autonomy, control and choices (“Green pants or blue pants today, sweetie?”). They’ve been encouraged to show their creativity and to take their extracurricular interests seriously. Raised by parents who wanted to be friends with their kids, they’re used to seeing their elders as peers rather than authority figures. When they want something, they’re not afraid to say so.

[div class=attrib]Read the entire article after the jump.[end-div]

Corporations As People And the Threat to Truth

In 2010 the U.S. Supreme Court ruled that corporations can be treated as people, assigning companies First Amendment rights under the Constitution. So, it’s probably only a matter of time before a real person legally marries (and divorces) a corporation. And, we’re probably not too far from a future where an American corporate CEO can take the life of competing company’s boss and “rightfully” declare that it was in competitive self-defense.

In the meantime, the growing, and much needed, debate over corporate power, corporate responsibility and corporate consciousness rolls on. A timely opinion by Gary Gutting over at the New York Times, gives us more on which to chew.

[div class=attrib]From the New York Times:[end-div]

The Occupy Wall Street protest movement has raised serious questions about the role of capitalist institutions, particularly corporations, in our society.   Well before the first protester set foot in Zucotti Park, a heckler urged Mitt Romney to tax corporations rather than people.  Romney’s response — “Corporations are people” — stirred a brief but intense controversy.  Now thousands of demonstrators have in effect joined the heckler, denouncing corporations as ”enemies of the people.”

Who’s right? Thinking pedantically, we can see ways in which Romney was literally correct; for example, corporations are nothing other than the people who own, run and work for them, and they are recognized as “persons” in some technical legal sense.  But it is also obvious that corporations are not people in a full moral sense: they cannot, for example, fall in love, write poetry or be depressed.

Far more important than questions about what corporations are (ontological questions, as philosophers say) is the question of what attitude we should have toward them.  Should we, as corporate public relations statements often suggest, think of them as friends (if we buy and are satisfied with their products) or as family (if we work for them)?  Does it make sense to be loyal to a corporation as either a customer or as an employee?  More generally, even granted that corporations are not fully persons in the way that individuals are, do they have some important moral standing in our society?

My answer to all these questions is no, because corporations have no core dedication to fundamental human values.  (To be clear, I am speaking primarily of large, for-profit, publicly owned corporations.)  Such corporations exist as instruments of profit for their shareholders.  This does not mean that they are inevitably evil or that they do not make essential economic contributions to society.  But it does mean that their moral and social value is entirely instrumental.   There are ways we can use corporations as means to achieve fundamental human values, but corporations do not of themselves work for these values. In fact, left to themselves, they can be serious threats to human values that conflict with the goal of corporate profit.

Corporations are a particular threat to truth, a value essential in a democracy, which places a premium on the informed decisions of individual citizens.  The corporate threat is most apparent in advertising, which explicitly aims at convincing us to prefer a product regardless of its actual merit.

[div class=attrib]Read more here.[end-div]

[div class=attrib]Time Saving Truth from Falsehood and Envy by François Lemoyne. Image courtesy of Wikipedia / Wallace Collection, London.[end-div]

Steve Jobs: The Secular Prophet

The world will miss Steve Jobs.

In early 2010 the U.S. Supreme Court overturned years of legal precedent by assigning First Amendment (free speech) protections to corporations. We could argue the merits and demerits of this staggering ruling until the cows come home. However, one thing is clear if corporations are to be judged as people. And, that is the world would in all likelihood benefit more from a corporation with a human, optimistic and passionate face (Apple) rather than from a faceless one (Exxon) or an ideological one (News Corp) or an opaque one (Koch Industries).

That said, we excerpt a fascinating essay on Steve Jobs by Andy Crouch below. We would encourage Mr.Crouch to take this worthy idea further by examining the Fortune 1000 list of corporations. Could he deliver a similar analysis for each of these corporations’ leaders? We believe not.

The world will miss Steve Jobs.

[div class=attrib]By Andy Crouch for the Wall Street Journal:[end-div]

Steve Jobs was extraordinary in countless ways—as a designer, an innovator, a (demanding and occasionally ruthless) leader. But his most singular quality was his ability to articulate a perfectly secular form of hope. Nothing exemplifies that ability more than Apple’s early logo, which slapped a rainbow on the very archetype of human fallenness and failure—the bitten fruit—and turned it into a sign of promise and progress.

That bitten apple was just one of Steve Jobs’s many touches of genius, capturing the promise of technology in a single glance. The philosopher Albert Borgmann has observed that technology promises to relieve us of the burden of being merely human, of being finite creatures in a harsh and unyielding world. The biblical story of the Fall pronounced a curse upon human work—”cursed is the ground for thy sake; in sorrow shalt thou eat of it all the days of thy life.” All technology implicitly promises to reverse the curse, easing the burden of creaturely existence. And technology is most celebrated when it is most invisible—when the machinery is completely hidden, combining godlike effortlessness with blissful ignorance about the mechanisms that deliver our disburdened lives.

Steve Jobs was the evangelist of this particular kind of progress—and he was the perfect evangelist because he had no competing source of hope. He believed so sincerely in the “magical, revolutionary” promise of Apple precisely because he believed in no higher power. In his celebrated Stanford commencement address (which is itself an elegant, excellent model of the genre), he spoke frankly about his initial cancer diagnosis in 2003. It’s worth pondering what Jobs did, and didn’t, say:

“No one wants to die. Even people who want to go to heaven don’t want to die to get there. And yet death is the destination we all share. No one has ever escaped it. And that is as it should be, because death is very likely the single best invention of life. It’s life’s change agent; it clears out the old to make way for the new. Right now, the new is you. But someday, not too long from now, you will gradually become the old and be cleared away. Sorry to be so dramatic, but it’s quite true. Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma, which is living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your own inner voice, heart and intuition. They somehow already know what you truly want to become.”

This is the gospel of a secular age.

[div class=attrib]Steve Jobs by Tim O’Brien, image courtesy of Wall Street Journal.[end-div]