The New Corporation: How “Good” Corporations are Bad for Democracy is a book written by Joel Bakan, a Canadian law professor and legal scholar. It serves as a sequel to his previous work, “The Corporation: The Pathological Pursuit of Profit and Power,” which was also made into a documentary film.
In “The New Corporation,” Bakan explores the evolving nature of corporations and their impact on society, focusing on the concept of corporate social responsibility (CSR). He argues that despite the increasing emphasis on CSR and the image of corporations as socially responsible entities, they continue to prioritize profit over people and the environment.
Bakan begins by examining the historical context of corporations, tracing their origins back to the 17th century when they were granted legal personhood. He highlights how this legal status has allowed corporations to amass immense power and influence while shielding them from many forms of accountability.
The author then delves into the rise of CSR in recent decades, which he sees as a response to growing public concerns about corporate misconduct and its negative consequences. Bakan acknowledges that some corporations have made efforts to adopt sustainable practices or engage in philanthropy, but he argues that these actions are often driven by self-interest rather than genuine concern for society.
One of the key arguments put forth in the book is that corporations have co-opted the language and rhetoric of social justice movements to create an illusion of progress while maintaining their profit-driven agenda. Bakan refers to this phenomenon as “corporate social engineering,” where companies use marketing strategies and public relations campaigns to shape public opinion and maintain their dominant position in society.
Furthermore, Bakan examines how corporations have influenced political systems through lobbying, campaign financing, and other means. He asserts that this corporate influence undermines democracy by skewing policy decisions in favor of business interests rather than the common good.
Throughout the book, Bakan provides numerous examples and case studies to support his arguments. He discusses the environmental impact of corporations, such as their contribution to climate change and resource depletion. He also explores labor practices, including the exploitation of workers in developing countries and the erosion of workers’ rights in industrialized nations.
In addition to critiquing corporations, Bakan also offers suggestions for reform. He advocates for stricter regulations, increased corporate accountability, and a reevaluation of the legal framework that grants corporations personhood. Bakan argues that these changes are necessary to ensure that corporations serve the interests of society rather than solely pursuing profit.
Overall, “The New Corporation” presents a critical analysis of the role and behavior of corporations in contemporary society. It challenges the notion that CSR initiatives alone can address the systemic issues associated with corporate power and calls for a fundamental rethinking of the relationship between corporations, democracy, and social justice.
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The New Corporation
- How “Good” Corporations Are Bad for Democracy
- Narrated by: Kevin R. Free
For more than a decade and a half, business leaders have called for a new kind of capitalism. With income inequality rising, wages stagnating and the climate crisis escalating, they realized they had to make social and environmental values the core of their message. The problem is that corporations still care first and foremost about their profits.
In clear and engaging prose, Joel Bakan documents how increasing corporate freedom infringes on individual freedoms and democracy. Through in-depth research and interviews with both top executives and their harshest critics, he exposes the inhumanity and destructive force of the current order – privatization for good. Profits undermine the public interest, governments neglect their duty to protect the environment, the growing alienation we experience as every aspect of life is saved, and how the COVID-19 pandemic has exposed unfair mistakes in our business-led society.
In addition to diagnosing major problems, in The New Corporation, Bakan narrates a hopeful road ahead. He reveals how citizens around the world are resisting and profiting in ways that promote democracy and benefit ordinary citizens rather than corporate elites.
I loved Joel’s book “The Corporation” and because I was in the manufacturing business and dealing with major auto corporations after reading that book, I bought many copies and gave them to any friends I used to deal with a large corporation. “The New Corporation” is a great book and I consider it a very important book for anyone. Joel Bakan is a great author and I love his writing style. I bought additional copies of “The New Corporation” to give away to my production friends who are still alive and a few others.
Like the recently released (great!)
Everyone should read this book to understand the truth. Struggling behind corporations but also great work done by community based organizations
