martin donohoe. corporations “the [only] social responsibility of business is to increase its...

Martin Donohoe

Corporations“The [only] social responsibility of business is to increase its profits.”

- Milton Friedman

Corporations“Corporations [have] no moral conscience. [They] are designed by law, to be concerned only for their stockholders, and not, say, what are sometimes called their stakeholders, like the community or the work force…”

-Noam Chomsky

OutlineCorporate Domination of World Economy

Corporate TaxationCorporate CrimeCorporations and EducationCorporations and the Media

OutlineInternational Non-Cooperation and Isolationism

Case StudiesSolutionsDiscussion

Corporations Dominate the Global Economy

Almost 6 million corporations90% of transnational corporations headquartered in Northern Hemisphere

500 companies control 70% of world trade

Corporations Dominate the Global Economy53 of the world’s 100 largest economies are private corporations; 47 are countriesWal-Mart is larger than Israel and Greece

ATT is larger than Ireland

The Stock MarketThe top 1% of Americans owns 51% of all

stocks, bonds, and mutual fund assetsConsequences of Differential Stock

OwnershipCorporations are answerable to their

shareholdersGovernments are answerable (at least in

theory) to their citizens (either through elections or revolutions)

CorporationsInternalize profits

Externalize health and environmental costs

Corporate TaxationCorporations shouldered over 30% of the nation’s tax burden in 1950 vs. 8% today

Nearly 1/3 of all large U.S. corporations pay no annual tax

Reasons for Inadequate Corporate TaxationCorporate tax breaks/loopholes

Corporate welfareCheating and under-payment common

Offshore tax havens shelter capital

“White Collar” (Corporate) Crime vs. “Blue Collar” (Street) Crime”Each year in America, we lose;$3.8 billion to burglary and robbery

Hundreds of billions to trillions of dollars to white collar crime

Why So Much Corporate CrimeFines meager, often considered a cost of

doing businessCorporate crime under-prosecuted,

prosecutors under-fundedConfidential legal settlements keep

important public health and safety information secretMay delay governmental intervention,

cause unnecessary morbidity and mortality

Consequences of CorporatizationInflation

Rising unemployment

Increasing industry consolidation/mergers

Consequences of CorporatizationRise of the “permatemp”

Expatriation of jobsOverseas factories often lack adequate

occupational health and safety and environmental standards

Decline in labor union membership

Exorbitant CEO PayCEO salaries up 500% since 1980The average CEO makes 350-400X the salary of the average U.S. worker (1960 - 41X)Mexico 45:1Britain 25:1Japan 10:1

Corporate Involvement in

Education

Public Education in DisarrayU.S. Schools ranked lowest among western nations

Widespread ignorance, superstition

Excessive television:Average American youth spends

900 hrs/yr in school, 1,500 hrs/yr watching TV

Corporate PR TacticsAdvertising

Astroturf - artificially-created grassroots coalitions

Corporate front groups

Corporate PR tacticsInvoke poor people as beneficiaries

Characterize opposition as “technophobic,” anti-science,” and “against progress”

Portray their products as environmentally beneficial despite evidence to the contrary

Sponsored Environmental Education Materials (Examples)International Paper

-“Clearcutting promotes growth of trees that require full sunlight and allows efficient site preparation for the next crop”

Exxon’s “Energy Cube”-“Gasoline is simply solar power hidden in decayed matter”-“Offshore drilling creates reefs for fish”

Academics/Professional Organizations Affected

Increasing corporatization of academia↑Private commercial funding of university research:

Secrecy/Gag Clauses

Media Consolidation5 corporations control majority of US media (down from 50 in 1983)

Doubt and misinformation are corporations’ products

Global Warming: Controversial?Of 928 articles in peer-reviewed scientific

journals, none were in doubt as to the existence or cause of global warming

Of 636 articles in the popular press (NY Times, Washington Post, LA Times, WSJ), 53% expressed doubt as to the existence (and primary cause) of global warming

Science 2004;306:1686-7(Study covers 1993-2003)

LobbyingOver 15,000 full-time lobbyists

Estimates of return on lobbying range from $28 to $100 for every $1 spent

LobbyingLobbying groups spent 3.5 billion in 2009 (federal lobbying, a record)

All single issue ideological groups combined (e.g., pro-choice, anti-abortion, feminist and consumer organizations, senior citizens, etc.) spent less than $100 million

LobbyingFinancial sector spent over $1.7 billion on campaign contributions for federal elections from 1998-2008Bailout dollars a huge return on investment

The Decline of DemocracyTrue democracy demands an informed citizenry (education), freedom of the press (media), and involvement (will, time, money)

Democracy is critical to the success of public health

Corporations and International AgreementsCorporations attempt to influence

writing and acceptance/rejection of international agreementsThrough misinformation, lobbyists, revolving door between industry and government

Large behind the scenes role

International Non-Cooperation/IsolationismFailure to sign or approve:

Kyoto Protocol on Climate ChangeInternational Covenant on Economic, Social, and Cultural Rights

Convention on the Prohibition of Anti-Personnel Land Mines

International Non-Cooperation/IsolationismFailure to sign or approve:

Convention on the Rights of the ChildConvention on the Elimination of Discrimination Against Women

Convention for the Suppression of Traffic in Persons

The Stockholm Convention on Persistent Organic Pollutants

Case StudiesGE Medical Systems - NY-Presbyterian Hospital Agreement

American Council on Science and Health (ACSH)

WHO Tobacco TreatyMedical Technologies (CT scans/scams)

Case StudiesCorporate agribusiness (GMOs,

labeling)Luxury care consortia and clinics,

health care tourismFor-profit prison construction,

management, and health careChemicals industry (Chisso,

Minimata Disease)

Health Insurance IndustryDubious practices:

DelistingCherry pickingPre-existing conditions

Often lower quality of careHigh administrative costs

15-30% (vs. 2-3% for Medicare and Medicaid)

Health Insurance IndustryLarge profit margins

Loyalty: shareholders (not patients)

Corruption

Pharmaceutical IndustryInfluence over physicians through control of CME, gifts, research funding

Conduct seeding trials to alter prescribing patterns

Secrecy, statistical torturing of data sets, selective publication

Pharmaceutical IndustryEffectively lobbied and threatened trade sanctions against developing countries in order to prevent production and importation of much cheaper, generic versions of life-saving anti-AIDS drugs

SolutionsRestructure tax systemPunish corporate scofflaws with

large fines and jail timeIncrease enforcement budgets to

combat corporate crimeEliminate confidential legal

settlements relevant to public health and safety

SolutionsWork with corporations

Healthy PRShareholder activismRisks/benefits

SolutionsActivism / Letter writing / Protesting / Whistleblowing

Community groupsLobby legislatorsRun for office

SolutionsIncrease funding of public education

Independent scientific review of school curricula

Prohibit use of sponsored curricula

SolutionsEstablish safeguards re corporate involvement in academic research

Higher standards of journalism

Support alternative media

“All men are created equal”Declaration of Independence

“Some people are more equal than others”George Orwell

Hudson River, 2009

Günter Grass

“The first job of a citizen is to keep your mouth open.”

Anita Roddick"If you think you are too small to have an impact, try going to bed with a mosquito in your tent"

Contact Information and References

Public Health and Social Justice Website

http://www.publichealthandsocialjustice.org

http://www.phsj.orgmartindonohoe@phsj.org