The Civic Obligation of Corporations
Brown (209) argued that the people’s civic agenda is simple to imagine. To him, civil agenda entails organization of systems of a provision in such a way that everyone including families and community can access what they need and value. He went ahead to list what the communities and families need and value. Communities and family’s needs are varied, and they comprise universal needs, basic needs, needs necessary to participate in the economy, and contingent needs. The author agrees that there is a provision for corporations in civic economics. However, the author is not satisfied that corporations are engaged in civic economics. The items the author listed as part of what the corporations should get involved in are the same things that corporations get their revenues from. Corporations survive by selling services and goods at a profit to communities and families. The same corporations cannot be expected to provide free services and goods to the people. The author contends that civic economics must incorporate the free enterprise. When examined deeply, the authors arguments are based on flawed assumptions. There is a difference between governments and corporations. Corporations exist to make a profit while government exists to organize systems so that it caters for what the communities and families need and value. Without profits, corporations would collapse. Corporations share part of their revenue with the government. The government is expected to utilize the taxes to empower families and communities to live better lives. Asking corporations to be involved in civic economics is wrong. The only thing corporations can afford to do is to participate in certain programs such as CSR when they have surplus revenue. Corporations have no civic obligation to play any role in the provision of distributions. Demand participation of corporations in civic matters is asking too much from corporations. That is the role of the government. Corporations engage only in politics to advance their commercial interests. Governments support corporations to thrive because their success indirectly helps governments to create jobs and other provisions to the people. The argument that international corporations can successfully operate in failed states, and therefore it can help in effective distribution of provisions is flawed. International organizations fill the demand gaps existing in the markets. It is the people who need the services and goods, and international organizations provide them at a profit. The civic agenda is totally different from the corporate agenda.
The Corporation as Property
The Corporation as a Community
It is true that corporations can be loosely referred to as a community of workers. However, unlike any other community, there is limited freedom to do what every member wish to do. One is only qualified to be a member of that ‘community’ upon meeting minimum requirements and also by upholding the principles. It is a community of employees working together with a common goal under certain rules of engagement. However, management in the context of the corporation is totally different from leadership in the community. Management in a corporation is guided by both internal and external policies and provided that one adheres to the policies, he/she will remain a member. If a corporation collapse, the community ceases. A corporation ability to act as an agent of the provision is limited to a few things such as offering people employment, creating a conducive environment, and paying salaries. It is specific unlike in civic economics where unlimited provisions are distributed to the community.
The Corporation as an Agent
That a corporation acts as an agent is true. Decision-making in a corporation involves several stakeholders who make decisions that advance the interest of the corporations. Decision-making in an organization can have far-reaching consequences for the various stakeholders. To limit adverse effects, the author is of the opinion that all agents in the system ought to work collaboratively in decision-making processes. The author ignores the fact that upon meeting the legal requirements to operate and basic ethical considerations, any other decision made by the business is meant to foster organizational performance. It could be a decision to make more profits, reduce branches, or limit production in order to create a deficit I the market. It could be even a decision to advertise their products which can harm the consumers like alcohol or cigarettes provided they are operating legally. Corporations are not there to make decisions which are in favor of the community. It is the purpose of the government to regulate corporations to operate within the law. Either way, the decision can affect the consumers. Corporations also operate in an environment where competitiveness is a key to the sustainable operation. Pushing for collaborative decision-making in a highly competitive environment is unrealistic. CSR is only is a form of philanthropy by the corporates, but the objective is usually to further the goals of the organization. The author’s criticism of CSR suggests the idea is not at all in the interest of the civic agenda. The beneficiaries of CSR do not decide what the corporations should do. Further, the same corporations which carry out CSR activities avoid paying taxes which would have been then used to further civic agenda. The question of the nature of the tax to be paid by the corporations should not arise. CSR is voluntary; it is a charitable activity. Not all corporates do offer CSR. Corporations exist to make profits, and it would be only sensible to tax profits. Given that corporates only decide many aspects of CSR, it would only make sense for them to observe their obligation and pay taxes which will be used in situations where the community play a role in the decision-making of how it is to be utilized. Corporations should be relieved of civic obligations. Their individual financing cannot sustain costly projects which are part of the civic agenda. They might choose to only dwell I what they can afford and leave the majority of the community lacking in many services and other things contained in the civic agenda which the author initially mentioned.
Corporations as Providers
Works cited
Brown, Marvin. Civilizing the Economy: A New Economics of provision. Cambridge: Cambridge University Press, 2010
