The Problem With Corporations

Most of the products and services that I use in my every day life are provided by publicly traded corporations. I wake up in the morning (TGIL), shower (PG), shave (ENR), brush my teeth (CL), get dressed (KSS), make coffee (SBUX), balance my checkbook (HBAN), check my email (YHOO), write a blog (GOOG), read the blogs I follow (APPL), have some breakfast (GIS), read a chapter in a book (NWS), get in my car (GM), and drive (ALL) to work (BMW.DE). And this is all before 8 o'clock in the morning!

The benefit to the consumer of the corporate business model is evident. When fundraising is opened up to the public, more money is made available to invest in product development. Over time, corporations are able to make better products at increasingly lower costs. For consumers, products become cheaper even as quality improves. I understand that Starbucks could not make the high quality coffee nor All-State provide the same level of coverage that I enjoy were it not for the backing of investors. I get it.

The problem I have with the corporate business structure is in the area of responsibility. If I have a problem, no single person can be held accountable. Only policies can be held accountable. Why do I only get 2 shots of espresso in a Venti Latte? Because that's Starbucks' policy. It isn't the Barista's fault. It isn't Howard Schultz's fault. It isn't even any single investor's fault. It is a collective decision made by no one but enforced by everyone.

I often hear statements about how a corporation believes this or that or does not support this or that. Target recently came under fire by Lady Gaga for contributing to a political candidate that opposes same-sex marriage. Does target disagree with same-sex marriage? Is it homophobic? Of course not, it can't be. It is not a free-thinking, decision-making entity. It is not a human being. It is an artificial construct. The same goes for corporations that advertise how much they care about consumers. They may say, 'we care,' but whether or not they realize it, they are lying. They cannot care. They cannot not care. Only individuals can do such things.

So are publicly traded corporations really any different in this respect from independently run organizations? Well, it depends on how large the organization is, I guess. How close can the consumer get to the decision-maker? Regardless, the decisions made buy a business should be traced to individuals. John Smith may care about you. John Smith's Hardware does not have the capacity to care.

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