Corporation Pros and Cons

A University of Wisconsin affiliate hosts a panel discussion that examines the role of corporations in society. Wisconsin Rapids Daily Tribune has the story here.

Observe:

The word "corporation" has become a four-letter word for many, as the Enron and Tyco cases of the last few years and recent examination of Wal-Mart's competitive practices have been touted as infamous examples of corporate greed.

On Tuesday night, the University of Wisconsin-Stevens Point's Center for the Small City hosted a panel discussion of "The Corporation," a Canadian documentary that critically examines the emergence, development and operation of the large, modern business corporation.

Scott Wallace, an assistant professor of business and economics at UWSP, said he was disappointed by the film, which he felt had not examined key aspects of corporations. One of the things omitted, he said, was the fact that managers and owners of a corporation are two separate groups.
"Those who run the corporation have more information than the owners," he said, "which puts the shareholders at a disadvantage."
Wallace gave the example of Enron and the $20 million sale in stock by an executive just prior to the discovery of company's accounting practices.
He said he felt the documentary was critical, without providing benefits of corporations, like the economic growth they can help provide.
"There has to be some sense of balance," he said.

A Catholic former CEO weighs in, too:

The former CEO of Joerns Corp. in Stevens Point, Ray Nass, sat on the panel and also discussed his experience as CEO of Appollo Corporation in Somerset. He had both good and bad experiences with regard to corporate culture, which he said would sometimes conflict with his belief in Catholic social teaching.

After many successful and ethical years at the head of one corporation, there came a time when "I was forced to do things that went against my conscience," he said. He then was able to move on to another position in another company that he felt treated its employees and the public well.

"The inequitable distribution of wealth is morally wrong," Nass said. "Position, power and intelligence are gifts of God to be used for good rather than exploitation."

Aside from Reverend Micke's Foolable, Robin-Hood-esque rhetoric, the panel participants offer a balanced look at how corporations impact society. Professor Wallace refuses to slam corporations; Mr. Nass won't canonize them. Their perspectives balance one another in a refreshing exercise of intellectual honesty and realistic insight.

Foolables of the right can wax poetic about the perfect efficiency of Adam Smith's laizze faire economics. Foolables on the left can't get past the Nanny State as the way out of unfettered capitalism's darwinian jungle. As usual, the truth lay elsewhere. For no Foolable has seriously addressed Christ's presence in our society's economic life.

We are not simply Absolute subjects that merely engage in mutual exchange out of self-interest. Nor our we simply part of the Borg collective of libertine nanny-statism. We are people made in the image and likeness of God. We who professor our faith in Christ Jesus the lord are disciples that unite with one another and live in communion with each other and him. Therefore, we are a people. Each of us live in the inalienable dignity given to us by our Father in heaven. Each of us live our individuality to the fullest when we give the very best of ourselves to one another. Thus, in relationship, we truly become who we are. When we participate in the economy, we particpate as members of his mystical body. We make our economic decisions with an eye to serving our neighbor as well as fulfilling the just needs that we have. We generously share what we have with those less fortunate than ourselves. We can't help but serve those who can't help themselves, for when we do, we serve Christ. We ultimately regard our use of even our own property as a stewardship, for which we owe an accounting.

Corporations ultimately represent a way in which people freely associate in order to further their own gain. Thus, corporations, like nations, have no morals; they have only interests. It remains up to we the people, who own the shares/run the corporation/consume the company's product or service, to determine how those corporations will pursue those interests. While government has a legitimate role to play in ensuring a sound juridicial structure in which corporations participate, it can't absolve us of our responsibility as moral agents. We need to ensure that these organizations pursue their interests through moral and just means. They're as good, or as evil, as we allow them to be.