A quick idea for today.

Currently I am reading When Corporations Rule the World by David Korten. Among anti-corporate thinkers, this book is touted as one of the leading works in modern anti-corporate theory. I’m only up to page 65 so far, but I must say that, although overall I don’t agree with David’s point of view, in this book David has raised some interesting issues. A few of his arguments have been well-made and well-sourced, while some others . . . well . . . not so much. Today’s idea concerns one of those arguments that could have been made more soundly.

On page 59 of the paperback edition, near the beginning of Chapter Four – Rise of Corporate Power in America, when discussing the significance of the corporation as an institution, David states:

On the negative side, it (the corporation) allows one or more individuals to leverage massive economic and political resources behind narrowly focused private agendas while protecting themselves from legal liability for the public consequences.

Yes. This is true. Business corporations do do this.

And the corporation, at least the type to which he refers, pays taxes in return.

Yet, there is a type of corporation which fits David’s description and that does not pay taxes. Not one cent. In fact, the type of corporation of which I am thinking, in essence, does its business at the expense of taxpayers. Let’s consider David’s description from the perspective of the modern non-governmental organization (NGO).

Modern NGOs are corporate entities which permit one or more individuals to leverage and apply their economic and political resources on narrowly focused privately-defined agendas while they and their employees enjoy the liability protection of the corporate form. And let’s add to this description of NGOs that they do so while receiving a tax-exempt status, so that, in essence, taxpayers are implicitly paying for the actions of the NGOs and the common resources that those NGOs consume at taxpayer expense.

This corporate format has worked out very well for businesses, yes. But it has also worked out well for NGOs. Remember. There are always two sides to every coin. Were it not for the corporate form, NGOs would probably not enjoy much of the power that they currently exercise.

The coin of corporate power cuts both ways, but when making an argument it should be incumbent upon the advocate to consider both sides of any coin.