Monday 2 November 2020

Corporations, decisions, and the changing social/world climate

One of the statements I've come across in many situations is that corporations "must" make decisions based on money. 

I've always been annoyed by that, as it isn't in the laws on corporations, and it has taken some time to find out that this is actually based on common law - i.e., the decisions made by courts.

Now, having finally been able to work that out, despite the non-assistance and, in fact, obstruction of those shooting their mouths off about what corporations may or may not do, no-one will give me the details of the cases - and I don't have the time to go searching through all the records of court cases to find them (and I assume something as significant as this would either have been decided on the basis of a very large case, or, quite possibly, built up over several cases)

The reason I want to do that, of course, is to challenge the decision. 

I have, however, realised that I don't actually need to do that. 

One of the points discussed in the film "On the Basis of Sex", about the early life of Ruth Bader Ginsburg (and it is probably in the book I have of RBG's legal pleadings before and decisions on the US Supreme Court, but, again, limited time so I haven't tracked that down yet), is that while courts should not be subject to the (ephemeral) weather of a time, they are (or should be) subject to the climate - that is, longer term changes in basic values (norms) of "the times". 

RBG used this principle to argue that it was not necessary to overturn the prior precedents on gender (or sex, as it was often mis-termed back then), but that the changed climate of society meant a new precedent should be established. 

In the same way, I argue that the changed conditions of today's world mean corporations making decisions solely on the basis of profit (money) are no longer appropriate - other matters, such as the environment (including, but not limited to, the climate crisis), stewardship of company resources (especially workers), and a social licence to operate, ought also to be considered.

So, next time I hear someone prattling on about how corporations "must" make decisions solely on a financial basis, I now  know how to rebut their argument. 

"All" that is needed now is for someone to write that in "legalese" and then win a case on that basis in an Australian court . . .

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