I’ve recently started a new class at my university and it’s about corporate law, and so far I’ve found this extremely fascinating – and the reason for this is because the very origin, and essence as to the psychopathic nature of corporations that act without mercy, and consideration – for one purpose only – PROFIT – is regulated and formed in the corporate law. It’s in-fact in the corporate law where it’s stipulated that the MAIN PURPOSE of the corporation is to generate profit for it’s shareholders. So, in this blog-post I am going to walk you through the very basics of corporate law – to as such show that the idea, and belief that the corporation is somehow to blame for the problems of our world – and the “evil CEO” – is in-fact false – because the problem doesn’t lie within the corporation, or the CEO – these are merely mental ideas of agreement that have been designed and imprinted with the symbolism of greed, as can be seen in the corporate law.
Firstly – I will explain exactly what a corporation is and how it functions. Now – in order to understand how the corporation came to be what it is today it’s of benefit to look back into history – and see why the corporation was first born. As such – the birthplace of the corporation was in the wake of the industrial revolution, as it was realized that a massive infrastructure of railways would really benefit the productivity of the newly created industries. But as you can imagine railways are no cheap thing – and obviously at that time there was no single man that wanted to stand the risk of such a massive investment. Accordingly came the idea of the “joint venture” – meaning that – several investors decided to join together with their riches to as such pave the way for the railways. Yet, there was still one problem – what if the railways didn’t bring any returns? Would then these courageous investors be completely ransacked by bankers, and other debtors claiming back their money? That could obviously not happen – and as such the corporation was formed – and it was designed as a “legal entity” – and would as such be responsible for all the debts and the shareholders (owners) of this legal entity – would as such not have to be personally responsible if their business venture would completely go of rails. The “investors” would as such not have to loose their home, wife, and mule only because their business went to shit – they would be spared and the legal entity (the corporation) would instead take the hits; which wasn’t as serious to the legal entity because it wasn’t a flesh and blood being and didn’t require a home, a wife, or a mule.
Thus – the first railways where built and they were a great success – and much money was made – and within all of this the corporation had been created. And it differed in two major ways in comparison to other business forms that had existed in the past – it didn’t consist of a real person as it was a legal entity, and it’s owners didn’t have to worry about financial failure – because the corporation would be responsible for any debts, and fiscal disasters.
So – to explain the organization of a corporation – it functions as follows – the owners of a corporation is it’s “share-holders” – it’s these persons that put most of the cash into the corporation that make it “come alive” – as they buy their shares in the corpus with the hope that these are later to give more money back (it’s almost like Frankenstein receiving electricity).
These owners though do not personally direct the corporation – because that is what the board of directors does, though they answers under the shareholders. The board of directors though do not control the daily movement and direction of the corporation, because that is what the CEO do – and the CEO answers under the board of directors, that in turn answer under the shareholders. So, here we can see a fascinating thing – that the ownership of the corporation is split from the control of the property of the corporation – because the shareholders own the corporation yet it’s not them that in-fact move, and control the property that is the corporation; as such the shareholders aren't really aware of what their investment of money is up to – all they want is – money back on their investment ASAP!
And this is the very essence of the problem as to why the corporation has become such a all consuming monster in our world – that rebukes any notion of morality in order to further it’s profits. Because what have the shareholders instructed their corporation – with it’s built-in brain as the board of directors, and the arms, and legs as the CEO? Well – they’ve told this corpus to MAKE PROFIT! GET ME SOME RETURNS ON MY STOCK! And what will the CEO, and board of directors do? Well – they want to keep their jobs, and preferably become even more lucrative on the job-market – so they will MAKE MONEY – and lots of it! Regardless of the consequences, because hey – they are only doing their job!
As such – we have the roles in a corporation set up as such that the owners of the corporation doesn’t really know, or care about what the corporation do, as long as it gives them returns on their stock – because the corporation will have to take all the shit if something goes wrong.
So – the very reason as to why CEO’s and board of directors, and corporations – are in essence complete psychopathic maniacs in terms of the decisions that they make – is because this is what they are instructed to do by their shareholders. And who’s the shareholders? Well – that’s you and me – the normal persons – the people that have their pensions stored away in some type of economical format – maybe some type of a stock in a profitable company? And as such – the terror of corporations is brought unto the world by you and me – without us really understanding how our decision to buy stock that we want to make money from – in-fact influence and create the world we know in which corporations acts without mercy and regard for life.
We have created the corporation – and it’s regulated in our law that the main purpose of the corporation is to profit; how can we then in anyway blame the corporations for destroying our world? I mean – we have created them! The corporation is but a dead carcass – a corpus – that we’ve fueled with our money and sent on a rampage in this world to make even more money. As such – no one can stop the corporations – because the corporations are driven by our laws, and are created through political decisions – and funded by the normal guy that saves his pension in some type of a stock (stuck?); as such no activism in the world will stop this beast as the corporation – because the corporation is us in-fact.
See – the corporations are only a consequence of our own nature – and can as such only change when we change the instructions of ourselves, and accordingly how we instruct the extensions of ourselves – as in this case – the corporation.
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