

PARADIGM SHIFT:
Challenging corporate authority
Dozens of New Strategies are Sprouting Up Across the US and
Canada--Some of Them Dating Back to Previous Centuries--That Challenge Illegitimate
Corporate Authority and Privilege
by Paul Cienfuegos
For most of the 20th century, American citizens have become accustomed to
challenging corporate harms and corporate abuses of authority one harm at
a time--one clearcut Timber Harvest Plan at a time, one toxic spill at a
time, one plant closure at a time.
It wasn't always like this. From the American Revolution to the end of the
19th century, in the words of Richard Grossman,
"Earlier generations of Americans were quite clear that a corporation
was an artificial, subordinate entity with no inherent rights of its own,
and that incorporation was a privilege bestowed by the sovereign people.
For example, in 1834 the Pennsylvania Legislature declared: 'A corporation
in law is just what the incorporation act makes it. It is the creature of
the law and may be molded to any shape or for any purpose that the Legislature
may deem most conducive to the common good.'
"People understood that they had a civic responsibility not to create
artificial entities which could harm the body politic, interfere with the
mechanisms of self-governance, and assault their sovereignty. They also
understood that they did not elect their agents to positions in government
to sell off the sovereignty of the people."
Here are a few examples of how different the rules were in the US until
the late 1800's. In many states, corporations were prohibited from owning
other corporations, prohibited from donating to political candidates or
charitable organizations, and prohibited from owning any land beyond what
was necessary for the carrying out of their chartered duties. Boards of
directors and stockholders were held personally liable for all harms and
debts. The "limited liability corporation," as we know it today,
did not exist.
Sadly, as we enter the 21st century, few Americans have any idea that such
a history even existed in this country. This is starting to change. Beginning
in the early 1990s--thanks to the seminal work of Richard Grossman and his
colleagues at the Program on Corporations, Law and Democracy (POCLAD)--Americans
started to rethink how we go about challenging the harms that corporations
get away with day in and day out in every city and town in America. We began
to rediscover what an appropriate relationship looks like in a democracy
between we the people and the fictitious subordinate creation we call the
"corporation." And we began to learn how to reframe our analysis
of what the problem is.
Yes, of course, clearcut logging and sweatshop labor and genetically engineered
"food" are a big problem. But the much bigger problem is that
we've allowed fictitious corporate "persons" to usurp our authority
as citizens to make these and other critical societal decisions which affect
all of us and the natural world. If we no longer pleaded with corporate
leaders to cause a little less harm, what would we do? If we no longer celebrated
as victories every brief delay in the corporate devastation of our world,
what would we celebrate?
By the mid-1990s, new groups were sprouting up across the US and Canada,
and asking themselves these questions. Each was beginning to experiment
with a different set of tools than those anyone had used for a century.
Groups like Democracy Unlimited in California, Reclaim Democracy! in Colorado,
180/Movement for Democracy and Education in Wisconsin, Friends of the Constitution
in Nebraska, and Citizens Council on Corporate Issues in British Columbia,
are all examples of this fledgling new movement.
Clearly, to ask people of every ideology to rethink how they respond to
corporate harm is a very big task, so a number of groups are beginning with
public education strategies. For example, in my community, 600 local residents
came together for nine hours of Town Hall meetings last year to discuss
the question, "Can we have democracy when large corporations wield
so much power and wealth under law?" (Videotapes are available.)
I am going to share with you dozens of stories of American and Canadian
citizens educating and organizing themselves and others--no longer simply
challenging individual corporate harms, but going after corporate privilege
and illegitimate corporate authority. There is tremendous diversity in our
goals and strategies-just what one would expect in a fledgling new social
movement.
Yes, it's still a small number of groups, but the number is beginning to
grow rapidly, and this growth represents a profound shift beginning to take
place in the consciousness of citizens.
Our world is in terrible crisis. We need to focus on what strategies have
the best chance of success, rather than those which simply postpone the
destruction. Consider these dozens of projects as a guide for you and your
community. Contact the organizers. Learn from their mistakes. Replicate
the projects that seem to work. There is no time to lose.
1. Bold Responses to Corporations Which Chronically Break the Law
·The Wayne Township Ordinance (Mifflin County, PA) was enacted into
law in 1998 by a 3-0 vote, and has since also passed in Thompson Township.
It prohibits any corporation from doing business in the township (even those
that are already located there) if it has a history of consistently violating
any regulatory laws (environmental, labor, etc.), and further prohibits
any corporation from doing business there if any of its current directors
sit on other corporate boards which consistently violate regulatory law.
Contact: Community Environmental Legal Defense Fund (CELDF), (717)530-0931,
<www.celdf.org>.
·Residents of Shasta County, CA, are circulating a "10 Strikes
and You're Out" ballot initiative in the town of Shasta Lake City near
Redding in order to try to stop a large German corporation (Knauf) from
building a fiberglass manufacturing plant there (and other toxic industry
which may follow). Contact: Protectors of Community Health, POB 1053, Shasta
Lake City, CA 96019, or phone Heidi Silva at (530) 472-1355.
·The Clinton administration is proposing an Anti-Scofflaw regulation
which would prevent the federal government from entering into contracts
with companies that chronically violate regulatory law. Contact: Robert
Weissman, <rob@essential.org>.
2. Challenging Public/ Corporate Partnerships
·The Berkeley and San Francisco School Districts are effectively challenging
corporate advertising in school buildings and working to get tobacco corporation
food out of school cafeterias. Contact: "Center for Commercial-Free
Public Education" ("UNPLUG") at (800)867-5841, <unplug@igc.org>,
<www.commercialfree.org>.
3. Local Communities, Locally Owned Businesses and Entire States Organizing
to Defend Themselves Against Corporate Power
·In November 1998, hundreds of campus organizers from across North
America met at the Campus Democracy Convention and formed the "180/Movement
for Democracy and Education," a chapter-based organization that stands
in opposition to the corporatization of education as well as other forms
of institutionalized hierarchy and oppression, and calls for a 180-degree
turn towards democracy. Since then, Democracy Teach-Ins have been organized
on hundreds of college campuses, many of them with their own active chapters.
They strive to unite students, campus workers, and the working public in
asserting democratic authority over our schools. Ongoing projects include:
challenging the authority of corporate-controlled boards of regents, mobilizing
opposition to the WTO, forcing administrators to stop purchasing from sweatshops,
and exposing corporate-controlled research programs. Contact: (608) 262-9036,
<clearinghouse@tao.ca> <http://corporations.org/democracy>.
·The Boulder Independent Business Alliance (BIBA) unites independent
businesses to compete effectively against corporate chain stores. Recent
work includes the "Community Vitality Act" currently under consideration
by the Boulder City Council. This legislation helps demolish the myth of
the "business interest" by supporting alliances among small businesses
that are victims of the chain stores. BIBA is also facilitating the creation
of IBA's in other cities (two to date). Contact: (303) 402-1575 <info@boulder-iba.org>,
<www.boulder-iba.org>.
·A new ballot initiative campaign in Oregon was launched in winter/spring
2000-the "Oregon Human Rights Initiative"--which attempts to statutorily
codify the UN's Universal Declaration of Human Rights (signed into law 51
years ago by virtually every nation in the world), making adherence to these
principles a requirement to do civic or commercial business in Oregon. Non-compliance
can result in charter revocation. Contact: chief co-petitioner Paul Van
DeVelder, (541) 752-8450, <oneworld@peak.org>, <www.oregonrights.com>.
·A number of years ago, the town of Jay, Maine, passed an ordinance
which gave the town the power to license, monitor, and enforce the same
environmental regulations that the state Dept. of Environmental Protection
and the federal EPA do. In the town is a pulp and paper mill owned by International
Paper company. Contact: Peter Kellman, <pkellman@cybertours.com>,
(207) 676-3356.
·The San Francisco County Board of Supervisors has passed a law requiring
all corporations doing business in the county to offer full benefits for
same-sex partners. It has already withstood a court challenge. Contact:
City of SF at (415) 554-6141. Read the full text at <www.cisf.ca.us/infoleg.html>.
·The Institute for Local Self Reliance (ILSR) in Minnesota launched
the "New Rules Project," which helps local communities to organize
against the ravages of absentee corporate decision making by "identifying
the rules that could close the gap between those who make the decisions
and those who feel the impacts--new rules that could bring both authority
and responsibility to the local level." Contact: (612) 379-3815, <www.newrules.org>.
4. Prohibiting (or Defining) Corporate Involvement in Particular Industries
·New farming laws in Nebraska ('Initiative 300"--1982), South
Dakota ("Amendment E"--1998), and Pennsylvania (1999) ban non-family-owned
corporations from engaging in farming or ranching, or owning farmland. Nebraska
and South Dakota achieved their success through ballot initiatives which
amended their state constitutions. "Friends of the Constitution"
is a Nebraska coalition of 18 farm, church, and environmental groups which
joined together to defend and enforce "Initiative 300." A similar
measure was achieved by two Pennsylvania townships (Wells and Thompson)
through ordinances passed by their respective township governments. There
are also a number of PA townships discussing similar legislation which would
ban corporate logging or forest land ownership. Contacts: South Dakota--Dakota
Rural Action, (605) 697-5204, <www.worc.org/member.html#draNebraska>,
<drural@brookings.net>--Nancy Thompson at FoC, (402) 494-9117, <nanthomp@pionet.net>,
<www.i300.org Pennsylvania>--Tom Linzey at Community Environmental
Legal Defense Fund (CELDF), <www.celdf.org>, (717) 530-0931.
·In Sonoma County, CA, the Occidental Arts and Ecology Center's "Food
Systems, Corporations and Democracy Program" has two local projects
aimed at shifting local decision making from the realm of private, property-based,
corporate, "market" decisions to the realm of public, democratic
decisions focused on the "commonwealth":
(1) Sonoma County Green Genes is organizing to pass resolutions at city
councils and school boards calling for a moratorium on the release of all
genetically engineered crops and foods, and for full corporate liability
for harms resulting from any releases of GMO's. (The city of Sebastopol
has already passed the resolution.)
(2) The Occidental Town Hall Coalition has organized a dozen town hall meetings
around the county--each attended by 250 to 500 people--to discuss the problem
of and strategize solutions to the expansion of corporate-owned industrial
vineyards, and the resulting loss of diverse small and family farms and
local agrarian culture. They are writing ordinances that redefine "farming"
and county land use policies away from corporate interests, and toward the
interest of the people and wild nature. Contact: Dave Henson, (707) 874-1557,
ext 4, <dhenson@oaec.org>.
5. Suing Governments for Violating the Federal Constitution
·A British Columbia-based organization-Defense of Canadian Liberty
Committee--is suing the Canadian government alleging that Canada's participation
in the MAI/WTO process of global corporatization is unconstitutional. Contact:
Connie Fogal, (604) 687-0588, <cfogal@netcom.ca>, <www.canadianliberty.bc.ca>.
6. From Corporate Ownership To Public Ownership
·Campaigns are heating up (or are already successful) at the municipal
level to return utilities to public ownership and management from the corporate
giants that currently control them. Two examples follow:
(1) The city of Ashland, OR, is installing a fiber optic network to provide
citizens with low-cost cable TV and high-speed data access. This public
utility is providing service below the cost charged by large corporations.
Contact: Wes Brain at <brain@mind.net>, (541) 482-6988, <www.ashlandfiber.net>,<www.ashland>
,<us/committees/committees.asp.net>. ,
(2) After four years of research and debate, a diverse coalition of people
in Davis, CA, has gathered enough signatures to place an initiative on the
local ballot to create a Davis Municipal Utility District (DMUD). DMUD would
be a community-owned energy co-op. The steering committee has formed a cooperative
organization to pursue the effort, with a working title of "Sustainable
Utility Network Cooperative" (SUN Co-op). The initiative vote would
not commit DMUD to purchase the system but does create a legal entity to
study the system and then conduct negotiations with PG&E Corporation.
DMUD could operate like the nearly 900 electric co-ops and hundreds of citizen-owned
utilities in the US, and further demonstrate the viability of ecological
and democratic business practices. Contact: <info@dmud.org>, <milbrodt@2xtreme.net>,
<www.dmud.org>.
7. Revoking Corporate Charters
·The New York Attorney General's office has shown surprising leadership
recently in challenging corporate charters. The previous Republican AG (Dennis
Vacco) successfully revoked the charters of two non-profit tax-exempt front
groups for the tobacco corporations (Tobacco Institute and Council for Tobacco
Research), and seized and distributed their assets to two public institutions.
The current Democratic AG (Eliot Spitzer) proposed--in a pre-election speech--a
"death penalty" for corporations that cause serious harm, though
he has failed to take any action since his election. Contact: Attorney General's
office in Albany, <www.oag.state.ny.us>.
·On 10 September 1998, the National Lawyers Guild (joined by 30 other
groups and individuals) filed a 129-page legal petition to California's
previous Republican Attorney General Dan Lungren requesting that he revoke
the charter of Union Oil Company of California (UNOCAL corporation) for
its decades of lawbreaking and global harms. He responded with a terse non-explanation.
On 19 April 1999, now joined by 150 additional endorsing organizations and
individuals, the petition was resubmitted to the newly elected Democratic
Attorney General Bill Lockyer, who also promptly responded with a brief
non-response. (A book including the petition, information about how to file
such a document, and details about the endorsing organizations can be purchased
for $12 from the Alliance for Democracy, 681 Main St., Suite 16, Waltham,
MA 02451.) Contact: Robert Benson, (213) 736-1094, <heed@igc.org>,
<www.heed.net>.
·In June 1998, a retired Alabama judge acting as a private citizen
filed for the charter revocation of five tobacco corporations that, he asserted,
have broken state laws (some dating back to 1901) and therefore should be
shut down (Philip Morris, Brown & Williamson, R.J. Reynolds, The Liggett
Group, and Lorillard Corporations). The list of violated laws includes:
contributing to the dependency of a minor, unlawful distribution of material
harmful to a minor, endangering the welfare of a child, assault in the third
degree, recklessly endangering another, deceptive business practice, and
causing the delinquency of a child. The case was ultimately transferred
from state to federal court and then back again, where it was dismissed
with no opinion given to explain a reason. Both the governor and attorney
general have close links to the tobacco industry. (Federal Citation of the
case: 51 F.Supp.2d 1232) Contact: William Wynn, (205) 978-5546, <sabrinawyn@aol.com>.
·In March 2000, Ohio State Representative Barbara Pringle (with the
help of American Friends Service Committee) wrote to the Ohio Attorney General
asking that the AG initiate corporate charter revocation proceedings against
the Cleveland Clinic (a non-profit corporation). The Clinic sought to purchase
two Cleveland area hospitals to shut them down, thereby reducing the availability
of healthcare to many Clevelanders, and continuing the trend towards consolidation.
This exercise of citizen authority over corporations contributed to the
Clinic's decision to instead sell the hospitals to another healthcare corporation
rather than close them. Contact: Barbara Pringle at (614) 466-5921,
<www.house.state.oh.us/reps/bios/bio.cfm?DISTRICT=13>.
8. Rewriting State Corporate Codes
·In 1999, a small group of citizen activists wrote a model "Corporation
Code" for the state of New Jersey that reins in illegitimate corporate
privileges. Their choice of states was not a coincidence, as New Jersey
was known as the "traitor state" at the turn of the century for
overturning more than a century of legal tradition regarding the defining
of and citizen control over corporations by state legislatures. The draft
document may be useful to anyone wishing to organize to amend their state's
corporate codes. Contact: Ward Morehouse, (212) 972-9877, <cipany@igc.org>.
9. Amending State Constitutions
·Montana's Supreme Court-in a landmark ruling on 20 Oct 1999--found
the State (without showing a compelling state interest) cannot allow activities
to continue that have the potential to poison the environment. The ruling
came in an appeal by two environmental groups challenging an exemption allowing
mining activities to degrade rivers. This was the first time that the court
had tested a Montanan's constitutional "right to a clean and healthful
environment" (Article II, Section 3 passed at their 1972 Constitutional
Convention). The court stated, "Our constitution does not require that
dead fish float on the surface of our state's rivers and streams before
its farsighted environmental protections can be invoked." Contact:
Tom France at National Wildlife Federation Resource Center in Missoula,
(406) 721-6705, <www.nwf.org>.
·Long-time Oregon citizen activist Lloyd Marbet announced in May 2000
his intention to organize a state ballot initiative campaign which, if successful
in November 2002, would amend the OR Constitution to prohibit anyone other
than a "natural person" (no corporate "persons") from
donating to any candidate or ballot initiative campaign. Contact: Lloyd
Marbet, (503) 637-3549, <marbet@mail.com>, <www.marbet.org>.
·Anti-corporate farming laws have passed in South Dakota and Nebraska,
created by citizens who won ballot initiatives to amend their state constitutions.
(See #4 for details and contact info.)
10. Challenging Corporate Personhood
·In a small community on California's north coast, a "Resolution
on Corporate Personhood in the City of Point Arena" was passed by the
City Council in a 4-1 vote on 25 April 2000. The resolution, among its many
points, disavows the personhood status of corporations, encourages public
discussion on the role of corporations in public life, and urges other cities
to foster similar public discussion. Contact: Jan Edwards at Redwood Coast
Alliance for Democracy, (707) 882-1818, <janedwards@mcn.org>, <www.iiipublishing.com/alliance.htm>.
11. Strengthening American Democratic Processes by First Educating Citizens
About Our History, and Thus Beginning to Reclaim Our Culture and Our Language
·"Citizens Over Corporations," a unique 52-page pamphlet
on the history of corporate power and democratic movements in Ohio, was
published in 1999 by the "Ohio Committee on Corporations, Law and Democracy,"
a project of the Northeast Ohio American Friends Service Committee. (Send
$3.50 to obtain a copy- checks to AFSC, 513 W. Exchange St, Akron, OH 44302.)
Pamphlets such as this need to be researched and written for every state
in the Union as a necessary first step in designing campaigns to reclaim
our authority over our corporate creations. Other as yet unpublished state
histories include Maine and Massachusetts. Contact: Greg Coleridge, <afscole@aol.com>,
(330) 253-7151.
·"Measure F: The Arcata Advisory Initiative on Democracy and Corporations"
won by 58% of the vote in November 1998 in Arcata, CA. It called for: (1)
two Town Hall meetings (April and May '99) on the topic: "Can we have
democracy when large corporations wield so much power and wealth under law?"--attended
by about 600 residents--almost 5% of local voters; and (2) the creation
of a standing committee of city council on "Democracy and Corporations"
(forming Spring 2000 after much hemming and hawing by the council) to begin
to rein in the authority and privileges of large corporations doing business
in Arcata. Contact: Democracy Unlimited of Humbolt County (DUHC), (707)
822-2242, <cienfuegos@igc.org>, <www.monitor.net/democracyunlimited>.
·As part of the Women's International League for Peace and Freedom's
"Challenge Corporate Power, Assert the People's Rights" national
campaign, six-session study groups are being formed around the country to
"explore the history and roots of corporate power, examine global corporatization,
decolonize our minds, and participate in democratic conversation."
Copies of study materials are available. Contact: Charmaine Sprengelmeyer,
(215) 563-5527, <wilpf@wilpf.org>, <www.wilpf.org>.
·At its third annual national convention in May '99, the Alliance for
Democracy (AfD)--with more than 60 chapters in 21 states--adopted three
national action campaigns. One of them is titled, "Transforming the
nature of large corporations to subordinate them to democracy." The
AfD has also recently launched dozens of local "Democracy Brigades"
to add a nonviolent direct action campaign component to its work. Contact:
(781) 894-1179, <peoplesall@aol.com>, <www.afd-online.org>.
·In December 1999, a new US/Canada-wide Democracy Network was formed--partially
inspired by the provocative analysis of Richard Grossman and his colleagues
at the Program on Corporations, Law and Democracy. It has established seven
working groups that include "Movement Building," "Research,"
and "Language," (a dictionary project entitled "Defining
Democracy"). Contact: each group has a contact person, so ask me, Paul
Cienfuegos, and I'll connect you (707) 825-0740, <cienfuegos@igc.org>.
12. Existing Organizations Reframing or Expanding Their Work in Order to
More Effectively Challenge Corporate Authority
·The General Assembly of the Unitarian Universalists has founded a
new organization in the US and Canada titled "UU's for a Just Economic
Community" that has a mandate to pursue eleven economic justice campaigns,
including: to work on the "Periodic review, renewal, or, if necessary,
revocation of corporate charters, depending on assessment of performance
consistent with the public interest." Contact: Neil MacLean, (415)
641-6299, <neil@warmcove.com>.
·In November 1998, at the Labor Party's first Constitutional Convention,
a resolution was passed unanimously-entitled "A Workplace Bill of Rights"--which
reframes the rights of workers to include worker (i.e. citizen) authority
over their subordinate corporate institutions. Contact: Ed Bruno, (617)
531-0901, <laborpne@aol.com>.
·United for a Fair Economy, a national organization based in Boston,
has added to their existing workshops and resources--on America's income
and wealth gap and the global economy--with a new training model for "Ending
Corporate Rule." Contact: (617) 423-2148, <info@ufenet.org>,
<www.ufenet.org>.
·A new US campaign was launched in June 1999 by the Women's International
League for Peace and Freedom (WILPF --one of the world's oldest peace organizations)-titled
"Challenge Corporate Power, Assert the People's Rights." Phase
I is study groups (see #11 for details and contact info); Phase II is designing
local campaigns.
·The Northeast Ohio American Friends Service Committee (AFSC, the Quakers)
is challenging state for-profit and not-for-profit corporate codes, looking
at charter revocation, and unmasking federal and state regulatory agencies.
Contact: Greg Coleridge, (330) 253-7151, <afscole@aol.com>.
·In 1999, the National Lawyers Guild launched a new campaign to challenge
corporate authority coordinated by its new "Committee on Corporations,
the Constitution and Human Rights." Contact: Eric Palmer at (212) 627-2656,
ext 12, <radicalawyer@igc.org>, <www.nlg.org/committees/corporations.htm>.
13. Relatively new organizations which have as their primary mission to
challenge corporate authority & corporate privilege, and reclaim democracy
from corporate "persons," rather than focusing on particular corporate
harms or industries.
·Program on Corporations, Law and Democracy (POCLAD), South Yarmouth,
MA Contact: Mary Zepernick, (508) 398-1145, <people@poclad.org>, <www.poclad.org>.
·Alliance for Democracy (AfD)-see also #11-Waltham, MA (781) 894-1179,
or <pe oplesall@aol.com>, <www.afd-online.org>.
·180/Movement for Democracy and Education (180/MDE)-see also #3 Madison,
WI (608) 262-9036, <clearinghouse@tao.ca>, <http://corporations.org/democracy>.
·Democracy Unlimited of Humboldt County (DUHC)-see also #11-Arcata,
CA. Contact: Paul Cienfuegos (707) 822-2242, <www.monitor.net/democracyunlimited>,
<cienfuegos@igc.org>,
·Reclaim Democracy!- Boulder, CO (303) 402-0105, <www.reclaimdemocracy.org>,
<info@reclaimdemocracy.org>,
·Citizens Council on Corporate Issues (CCCI), Vancouver, BC, Canada.
Contact: Gil Yaron, (604) 734-1815, <ccci@corporateissues.org>, <www.corporateissues.org>.
·Polaris Institute Ottawa, Ontario, Canada. Contact: Tony Clarke, <tclarke@web.net>,
<www.polarisinstitute.org>, (613) 746-8374.
·Defining Democracy Workgroup (of the Jeannette Rankin Peace Center),
Missoula, MT . Contact: Dean Ritz , (406) 543-3955, <democracy@jrpc.org>,
<www.jrpc.org>.
----------------------------------------------
CITIZEN VS. CORPORATE POWER
Citizens over Corporations: A Brief History of Democracy in Ohio and Challenges
to Freedom in the Future is a 56-page booklet produced by the Ohio Committee
on Corporations, Law and Democracy, a group of activists and individuals
across the state concerned with the growing power of corporations to govern
and the dangers this poses to democracy in our state and nation. The booklet
looks at the history of the corporate form in Ohio. It details
·how corporations were closely controlled by citizens and their elected
representatives in the early decades of the state's history (including examples
of strict controls contained in early corporate charters (most corporations,
even today, are chartered at the state level),
·what legal tools people used in the legislature and courts to control
corporations,
·how corporations began to gain legal "rights" and "privileges"
that our ancestors never intended,
·what resistance came from working and other people,
·how corporations are, in many ways, equal or superior to human beings
today, and
·what we can do to "rethink" the current relationship between
"we the people" and corporations.
Single copies are $2.50 plus $1 postage. Bulk rates available.
Order from:
Northeast Ohio American Friends Service Committee (AFSC), 513 W. Exchange
St., Akron, OH 44302