Slog

News & Arts

The Stranger Suggests

Critics' Best Bets
Music Arts & Food


Line Out

Music & the City
at Night

Wednesday, January 27, 2010

More Citizens United: Are Corporations People?

Posted by on Wed, Jan 27, 2010 at 11:48 AM

It's been five days since Citizens United came down, and you could make a full-time job of following the written fallout. A common theme is that the vice of the majority opinion, maybe even of life generally in these United States, is that corporations have rights. Some exponents of this school seem to have only now discovered the idea of corporate personhood, and they don’t like it. Corporations aren’t people! This leads to proposed Constitutional Amendments like this:

SECTION 1. The U.S. Constitution protects only the rights of living human beings.
SECTION 2. Corporations and other institutions granted the privilege to exist shall be subordinate to any and all laws enacted by citizens and their elected governments.
SECTION 3. Corporations and other for-profit institutions are prohibited from attempting to influence the outcome of elections, legislation or government policy through the use of aggregate resources or by rewarding or repaying employees or directors to exert such influence.

People! It's OK to get mad, but trust us, you do not want that Amendment. As certain people's dads used to say, it's like using a steamroller to crack a walnut.

A long line of Supreme Court rulings, going back to the early 19th century, confers on corporations many of the rights granted to persons under the Constitution. For example, the government can't break into a corporation's office and search for evidence without a warrant (4th Amendment). Corporations are entitled to trial by jury in criminal matters (7th Amendment). Corporations cannot be subjected to double jeopardy (5th Amendment). The Government can't seize corporate property without due process or just compensation (5th and 14th Amendments). Contracts entered into by corporations are protected by the contracts clause of Article I, Section 10. There is not serious debate about these settled principles. We want things this way.

In fact, it is settled that speech out of the, er, mouths of corporations is protected by the First Amendment, as Justice Stevens points out (look at it this way: should Congress be able to prohibit any corporation—including a nonprofit advocacy group—from criticizing American wars?). It is the Kennedy majority who treats the point as unsettled. For Justice Stevens, the issue is not whether corporations have rights under the Constitution, but how to square First Amendment protections for corporate speech with the core purposes of the First Amendment for We The People.

There's no better way to get that across than to quote from Stevens directly and liberally (emphasis added):

The fact that corporations are different from human beings might seem to need no elaboration, except that the majority opinion almost completely elides it.... It might also be added that corporations have no consciences, no beliefs, no feelings, no thoughts, no desires. Corporations help structure and facilitate the activities of human beings, to be sure, and their "personhood" often serves as a useful legal fiction. But they are not themselves members of "We the People" by whom and for whom our Constitution was established...

More from Stevens after the jump.

These basic points help explain why corporate electioneering is not only more likely to impair compelling governmental interests, but also why restrictions on that electioneering are less likely to encroach upon First Amendment freedoms. One fundamental concern of the First Amendment is to "protec[t] the individual's interest in self-expression."….

It is an interesting question "who" is even speaking when a business corporation places an advertisement that endorses or attacks a particular candidate. Presumably it is not the customers or employees, who typically have no say in such matters. It cannot realistically be said to be the shareholders, who tend to be far removed from the day-to-day decisions of the firm and whose political preferences may be opaque to management. Perhaps the officers or directors of the corporation have the best claim to be the ones speaking, except their fiduciary duties generally prohibit them from using corporate funds for personal ends. Some individuals associated with the corporation must make the decision to place the ad, but the idea that these individuals are thereby fostering their self-expression or cultivating their critical faculties is fanciful. It is entirely possible that the corporation's electoral message will conflict with their personal convictions. Take away the ability to use general treasury funds for some of those ads, and no one's autonomy, dignity, or political equality has been impinged upon in the least....

None of this is to suggest that corporations can or should be denied an opportunity to participate in election campaigns or in any other public forum…or to deny that some corporate speech may contribute significantly to public debate. What it shows, however, is...a concern to facilitate First Amendment values by preserving some breathing room around the electoral "marketplace," the marketplace in which the actual people of this Nation determine how they will govern themselves. The majority seems oblivious to the simple truth that laws such as §203 do not merely pit the anticorruption interest against the First Amendment, but also pit competing First Amendment values against each other….

It would be perfectly understandable if our colleagues feared that a campaign finance regulation such as §203 may be counterproductive or self-interested, and therefore attended carefully to the choices the Legislature has made. But the majority does not bother to consider such practical matters, or even to consult a record; it simply stipulates that "enlightened self-government" can arise only in the absence of regulation….In light of the distinctive features of corporations identified in Austin, there is no valid basis for this assumption. The marketplace of ideas is not actually a place where items—or laws—are meant to be bought and sold….The Court's blinkered and aphoristic approach to the First Amendment may well promote corporate power at the cost of the individual and collective self-expression the Amendment was meant to serve.

So if that proposed amendment we began with above is no good, what would a good amendment be? Next up: We'll write our own.

 

Comments (20) RSS

Oldest First Unregistered On Registered On Add a comment
Fnarf 1
Thank you.

You left out the fact that this would put US corporate law at odds with every other country in the world, and result in the near-instantaneous exodus of every corporation from the US to someplace else. Note also that the vast majority of corporations are not Exxon and General Motors; they're many thousands of smallish businesses too.
Posted by Fnarf http://www.facebook.com/fnarf on January 27, 2010 at 11:56 AM
Timrrr 2
You rock!
Posted by Timrrr on January 27, 2010 at 11:56 AM
Julie in Eugene 3
This is a great post, including the sections of Stevens' dissent. Nice job.
Posted by Julie in Eugene on January 27, 2010 at 12:06 PM
Mrs Jarvie 4
The Three Laws of Corporate Personhood:

1. A corporation may not injure a human being or, through inaction, allow a human being to come to harm.

2. A corporation must obey any legal directives given to it by human beings, except where such orders would conflict with the First Law.

3. A corporation must protect its own existence as long as such protection does not conflict with the First or Second Law.

We can turn to Asimov in times of doubt.
Posted by Mrs Jarvie on January 27, 2010 at 12:14 PM
Fifty-Two-Eighty 5
I just woke up and haven't had my coffee yet, so I'm not really in the mood for an argument yet. But I will point out that the stated reason for the ban in the first place was to preclude the NRA from advertising in support of or against candidates. While the NRA is a very much a corporation, they don't fit the mold of an Exxon or Bank of America.
Posted by Fifty-Two-Eighty http://www.nra.org on January 27, 2010 at 12:17 PM
Mrs Jarvie 6
The Three Laws of Corporate Personhood:

1. A corporation may not injure a human being or, through inaction, allow a human being to come to harm.

2. A corporation must obey any legal directives given to it by human beings, except where such orders would conflict with the First Law.

3. A corporation must protect its own existence as long as such protection does not conflict with the First or Second Law.

We can turn to Asimov in times of doubt.
Posted by Mrs Jarvie on January 27, 2010 at 12:25 PM
giffy 7
No corporate personhood=no modern economy. Now that does not mean that they should have all the same rights, but at a threshold they need to be able to act as autonomous entities.
Posted by giffy on January 27, 2010 at 12:35 PM
8
Fnarf, talk about intellectual dishonesty. All these grassroots corporations of yours could have set up a PAC and had access. Also, your small-town America, grassroots corporations include CNOOC and Saudi-owned News Corp so let's drop the b.s. Your mom and pop corporations also blocked any legislation to protect the family-owned farms from agribusiness, and really the biggest effect of this decision noted in Slog yesterday is to affect the election of state judges.
Posted by left coast on January 27, 2010 at 12:40 PM
Fnarf 9
@8, what language are you speaking?
Posted by Fnarf http://www.facebook.com/fnarf on January 27, 2010 at 1:00 PM
Matt the Engineer 10
"We want things this way." I don't see why. And if we really do want those things, we can legislate that seperately. And actually, we probably should legislate that separately - right now an unincorporated business can be searched by the government without a warrant? WTF?

I know Mrs Jarvie @4 is half-joking, but I think those would be great laws.
Posted by Matt the Engineer on January 27, 2010 at 1:19 PM
Matt the Engineer 11
"We want things this way." I don't see why. And if we really do want those things, we can legislate that seperately. And actually, we probably should legislate that separately - right now an unincorporated business can be searched by the government without a warrant? WTF?

I know Mrs Jarvie @4 is half-joking, but I think those would be great laws.
Posted by Matt the Engineer on January 27, 2010 at 1:22 PM
fixo 12
@11 The point is that we want the advantages that come from associating with one another to accomplish things in life. Freedom of association is itself a First Amendment right. Also, the spectre of re-legislating everything that is currently more or less settled about the role of corporations in our land--and their rights--is daunting at best. What we don't need is a sophomoric, categorical approach to corporate political speech that ignores the effect on the rights of all of us in a democracy of unbridled corporate electioneering. In his concurrence, Justice Scalia tosses off the sound bite "There is no such thing as too much speech." Justice Stevens rightly takes him to task for it, because, as everybody knows, that's never been the law, and nobody in the real world would want it to be the law.
Posted by fixo on January 27, 2010 at 2:55 PM
vooodooo84 13
@11 no, an unicorporated business would be a sole proprietership or a partnership, so the business would be the property of some actual person who did have constitutional rights. There isnt any donut hole here to make it absurd.
Posted by vooodooo84 on January 27, 2010 at 3:21 PM
Will in Seattle 14
@13 - all corporations and partnerships are, by necessity, legal fictions we use to limit risk, and thus are, for the most part, injurious to the well-being of society.

Sad, but true.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on January 27, 2010 at 3:41 PM
15
The author Max Barry recent wrote a great blog saying a similar thing. My favourite passage was:

It’s interesting to note how corporations get to pick and choose the good parts of being a person. They can own property but can’t go to prison. They can sue you into bankruptcy, which you have to live with for the rest of your life, but if you win a big case against them, you get nothing while they reconstitute their assets and arise, Phoenix-like, under a new name. If you misbehave, you are personally responsible; a corporation jettisons a minor component it says was to blame. There is no ending them. This is the kind of personhood you would choose, if you could. It’s what happens when people making laws about corporations are themselves beholden to corporations.

http://maxbarry.com/2010/01/22/news.html
Posted by versus boredom on January 27, 2010 at 3:44 PM
16
Exactly @15, how about we tax them like people? How does 45-50% sound?

Fnarf, "Note also that the vast majority of corporations are not Exxon and General Motors; they're many thousands of smallish businesses too."
Posted by left coast on January 27, 2010 at 4:29 PM
curtisp 17
So if a corporation that I know about goes out of business I'm supposed to feel like someone died? Corporate people and embryonic people, those are the people that really matter. That could be the RNC's new slogan.
Posted by curtisp on January 27, 2010 at 8:43 PM
18
Corporations are government creations meant to incentivize certan behaviors sold as a benifit to protect members from litigeous asshole lawyers.

Lawyers become politicians, politicians sign law, corporations hire lawyers. Now they propose to save us from one too many laws.

Of course corporations are people, associations of people. What? Are coprporations buildings? Bank accounts?
Posted by faggot on January 28, 2010 at 5:48 AM
giffy 19
@16 Corporate tax rates are pretty much the same right now as individual rates. However corporations are pretty careful to not have large profits preferring to pay that out in salary or make investments in order to avoid taxes.
Posted by giffy on January 28, 2010 at 7:03 AM
20
@19, i run one and that's total bullshit
Posted by left coast on January 28, 2010 at 8:44 AM

Add a comment

Advertisement
 

All contents © Index Newspapers, LLC
1535 11th Ave (Third Floor), Seattle, WA 98122
Contact Info | Privacy Policy | Terms of Use | Takedown Policy