Fixing corporations...

[kengr]

(and no, I don't mean in the veterinary sense, though that might be a good idea too :-)

After reading yet another story about the harm corporate profit seeking has caused (especially in the health industry) I've come to the conclusion that we need some new rules for them

First and foremost, a corporation *must* have an *explict* purpose other than "make money for the shareholders".

Second, that purpose must not be contrary to the public interest.

Third, that purpose must override the profit of the shareholders. Not that the shareholders must do things to further the company's purpose that will cost them money, but rather, they may not vote for things that get them more money at the *cost* of the company's purpose.

So "cost-cutting" measures that impair the ability to carry out the purpose of the company are out. If they are necessary to keep the company going, that's different.

Fourth, we probably need something about excessive profits. Like that cancer drug that costs around 25 cents a dose, but is sold at around a thousand dollars a dose. And contrary to the usual pious claims about paying for research on other drugs, it ain't going into that. It's going to stockholders and corporate officers.

I can hear the screams now. Especially from insurance companies. Too bad, so sad.

Comments

[kengr]

Belatedly, I realized that the second item needs fleshing out. Not only must the purpose be in the public interest, but actions taken to fulfill the purpose must not be *against* the public interest.

I'm thinking of both ther tobacco and oil industries...

[siliconshaman]

1. A corporation may not through it's actions harm a human being, nor though inaction or negligence allow a human being to be harmed.

2. A corporation must obey the laws as laid down by the relevant authorities, except where that would contradict the first rule.

3. A corporation must act to protect it's staff except where that would contradict the first two rules.

Not difficult to formulate really.