Dawid:
A corporation, public or private, as is understood in the western world is
obligated to to fulfill the mandate[s] as set out in the formal documents
used to bring it [the corporation] into existence.
Your statement that
"Bakan's argument includes the point that the corporation's sole reason for
being is to enhance the profits and power of the corporation. He shows (by
citing court cases) that it is the *duty* of management to make money and
that any compromise with that duty is *dereliction of duty*. "
is nonsense and by extension so is Bakan's argument. If you were to consult
the memorandum of association, articles of association, letters patent, etc
or whatever documents gave rise to the creation and existence of the
corporation you'd realize that a modern day corporation's objectives and
permissions are virtually limitless. Focus is placed on your assertion of
the "sole reason".
Perhaps you should cite someone more elevated up the food chain than an
associate professor at UBC. If he is perpetrating the myth that the sole
reason for a corporation's existence is to enrich its shareholders he should
start all over as an undergraduate law student.
jh
----- Original Message -----
From: "Dawid Loubser" <dawidl@xxxxxxxxxxx>
To: "Olympus Camera Discussion" <olympus@xxxxxxxxxxxxxxxxx>
Sent: Thursday, December 03, 2009 5:49 AM
Subject: Re: [OM] OT: Google Wave
> Chris,
>
> A individual or a company cannot, of course, take itself to court.
>
> I made the assertion that a publicly-traded corporation is legally
> mandated to
> pursue the monetary interest of its shareholders above all else.
> Certainly
> in U.S. and UK legal systems. This is, to my mind, damaging to mankind.
>
> If anybody doubts this, I suggest they read the book "The Corporation"
> by
> law professor Joel Bakan.
>
> Bakan's argument includes the point that the corporation's sole reason
> for being is to enhance the profits and power of the corporation. He
> shows
> (by citing court cases) that it is the *duty* of management to make
> money and
> that any compromise with that duty is *dereliction of duty*.
>
> Another point he illustrates (again, by citing court cases)
> is that "corporations are designed to externalize their costs."
> The corporation is "deliberately programmed, indeed legally compelled,
> to
> externalize costs without regard for the harm it may cause to people,
> communities, and the natural environment. Every cost it can unload
> onto someone
> else is a benefit to itself, a direct route to profit."
>
> It was an interesting and eye-opening read indeed, when I first laid
> eyes on it
> about 5 years ago.
>
> regards,
> Dawid
>
> On 03 Dec 2009, at 11:08 AM, Chris Barker wrote:
>
>> Dawid
>>
>> They would be taking themselves to court if that were the case.
>>
>> Chris
>>
>> On 3 Dec 2009, at 08:08, Dawid Loubser wrote:
>>
>>> By law, the primary purpose of a publically-traded corporation is to
>>> make profit
>>> for its shareholders. Any shareholder can take a corporation to court
>>> if, for example,
>>> the corporation took steps (such as doing e.g. a "good deed") which
>>> caused a drop in the
>>> shareholder's investment. There reverse is not true, however.
>>
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