THE CORPORATION

 How can we ensure corporations are held accountable for their actions “ethically” and “legally”?

Corporations can show us they act legally and ethically in their daily exercise by creating campaigns that involve people, camping’s or projects that benefit society, also by demanding the results and the our rights as users of their services or as clients of their products.

Also, governments must be aware of all the practices of the companies and must enhance their legislations in order to establish much more control, must create norms, laws, institutions that control, support, help and observe the companies in these matters.

Should individuals (directors, employees, shareholders) bear any responsibility for the actions of a corporation? If so, to what degree?

Nowadays, it’s normal to think in large business units that you relate with the word corporation, that can be defined such as group of people working in order to obtain as much as profit as they can, and for a variety of common objectives, under too many circumstances; those circumstances can be positive or negative, it depends.                                                                                                               With the industrialization process in United States, corporations, which were once created by the state to develop, research or obtain a certain benefit from a specific task; change their basically orientation towards becoming a legal person, with rights, able to demand, sell and buy.

Along with globalization, CEO´s of major corporations became more and more ambitious in terms of the expansion, conquer new markets, and gain larger profits and revenues. They started changing and implementing new techniques or procedures that affected somehow negatively lots and lots of people, like their own employees, neighbor communities…among others. Right now, the film Erin Brockovish, with Julia Roberts, comes to my mind, because it shows how lots of people suffered the secondary effects from the intoxication with chemicals from the water, after it passes from a corporation’s plant in the neighborhood; it shows who had the responsibility of the actions the corporation took and how they handle the process with the victims.

Responsibility it´s complicated for me in the way that I think that you are responsible for all the actions you make or you choose to make, the issue here is that when you´re and employee of an organization, company or corporation, you act on behalf that “name”. Sometimes, you have to do certain things you might not agree, in order to not lose your job, but it’s because you are subordinated by your boss, and he is by he´s bosses and so on…so in an organization, for me responsibility comes from the higher ranks, CEO, VP´s, directors, who are the ones uncharged of taking the big decisions and setting the policies necessary for the organization to exist, succeed and achieve its objectives. Shareholders might be important or might be not in the decisions process, it depends of the type of the organization, and it’s different, here in Colombia, ECOPETROL than POSTOBON S.A. For me the responsibility comes and should be bear by the ones that take the decision that caused an effect you must be responsible of…directors, VP´s or the CEO.

What are the benefits of the corporate form? Could an alternative model offer these as well?

As a company, you have much more power than as an individual; that’s why companies along with having greater responsibilities have lots of benefits, not only in the monetary part where they gain a large amount of profits; also they can bring development to their own society and community, advances, new people, technology…as a stockholder you have benefits and you can play according to wherever your economic interest may be. 

Search for a foreign multinational corporation that has operations in Colombia. Research if they are run under Colombian rules or regulations or if they have special regulations?

Procter & Gamble is a multinational corporation with a big presence and impact into the Colombian health-beauty care market. They adapt their products into what this market demands, sometimes they even change the name of the product or just sold some lines, but not the hole portfolio of their products.

Should economic efficiency (Main argument for privatization) be the primary concern for commons and public services? Are there other criteria to determine who should own or operate them?

I think economic efficiency should be the primary concern in commons and public services due to the globalization trend we are living and facing right now, it’s what moves the world and what basically and finally connects today´s world and at the same time, customers are highly demanding lower process and excellent quality, so there´s where the business starts.

Good Will, corporate values and procedures, ethical practices, excellent quality of the service-product, responsiveness to the customer… are what can be used to determine who should own or operate them.

ERIN BROCKOVISH

DeVito, D., Sher, S., Shamberg, M., Lyon G., Hardy, J. (Producers), & Soderbergh, S. (Director). (2000). Erin Brockovish [Motion picture]. United States: Universal Studios

Erin Brockovish. Retrieved on February 14, 2011 from: http://pics.filmaffinity.com/Erin_Brockovich-258309066-large.jpg