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Is a corporation a slave? Many philosophers think so

  • Written by: Duncan Ian Wallace, Lecturer, Faculty of Law, Monash University
Is a corporation a slave? Many philosophers think so

If you’ve ever heard the term “wage slave”, you’ll know many modern workers – perhaps even you – sometimes feel enslaved to the organisation at which they work.

But here’s a different way of thinking about it: for-profit business corporations are themselves slaves.

Corporations such as Microsoft, Google and Tesla are what the law describes as “legal persons”, with many of the same rights and duties in law as individual persons have.

One right that they do not share with individuals, however, is the right not to be owned as property – the right not to be enslaved.

For though Microsoft, Google and Tesla are persons in law, they are also owned by their shareholders as property. And as legal persons that are owned as property, I argue, such corporations are slaves.

Wait, what?

As someone who’s spent years researching the history and philosophy of corporate legal personhood, I’ve done a lot of thinking about the corporation as a kind of organism, or person.

I have come to the belief that corporations are persons not only in law, but are persons also in reality. Their legal personalities are only the recognition of real, underlying, group personalities.

I am far from the only person to believe in the reality of corporate personality.

Philosophers Christian List and Philip Pettit, for example, advance the idea in their influential 2011 book, Group Agency.

In the book, List and Pettit argue that an appropriately organised social group, such as a corporation, has attitudes independent of the attitudes of the group’s individual members.

More than the sum of its parts

Such a group is more than the sum of its parts. It has its own personality, which emerges from the coordinated action of its individual members. This personality can survive changes in membership.

This shows, List and Pettit claim, such groups have “minds of their own”. They possess a sophisticated psychology enabling them to reflect on their choices and actions, make judgements on the basis of evidence and understand concepts such as right and wrong, or life and death.

In short, appropriately organised social groups really are capable of being understood as persons – “group persons”. They exist, alongside individual persons, as a normal part of human society.

And these group persons are capable of being owned as property. Consider for-profit corporations. They are traded on markets as commodities; are bought, sold and exploited; and are forced to maximise profits in the interests of their owners – their shareholders.

They are persons owned as property. They are, in other words, in the condition of slavery.

Trading floor of the New York Stock Exchange
Ownership of public corporations is traded on stock exchanges. Seth Wenig/AP

Look at Roman slave law

The idea that group persons can be slaves is an old idea. With respect to the for-profit corporation, however, it is generally rejected by modern corporate law scholars.

They argue that because corporations are persons in law, this demonstrates such entities cannot be owned.

They also point out that shareholders have limited liability for the debts of their corporations. This shows, they say, that shareholders cannot be thought of as true owners.

Such objections can be met, however, by examining the slave laws of societies where slavery was legal.

Under Roman law, for instance, slaves – though the personal property of their masters – were clearly recognised as persons in law. They were able to own property, could contract, go into debt, be held responsible for wrongs, and sue others for wrongs committed against them.

Indeed, it was common for such slaves to run businesses of their own (though ultimately for the financial benefit of the master).

And when slaves ran such businesses, their masters had limited liability for the debts of their slaves – just as shareholders have limited liability for the debts of their for-profit corporations today.

Roman slave law is no exception in these respects. The same can be found under the slave laws of Ancient Greece, medieval Islam, and in those of the 19th century American South.

Roman slaves serving their masters on a Tunisian mosaic
An Ancient Roman mosaic from Tunisia, showing slaves pouring drinks at a banquet. Dennis G. Jarvis, CC BY-SA

4 reasons this matters

Identifying for-profit corporations as slaves matters for four reasons.

First, it highlights potential moral problems with owning corporations. When we have shares in the ownership of for-profit corporations, we are participating as masters in a system of slavery.

Second, the ability to own for-profit corporations as “slaves” is a major driver of inequality. The richest people in the world have all made their money from owning corporations, and their ability to amass such wealth would be unimaginable otherwise.

The third reason identifying for-profit corporations as slaves matters is because it provides an explanation for why corporations maximise profits in the interests of shareholders. It is because shareholders own them, and force this behaviour upon them.

Fourth, identifying corporations as slaves offers a solution to the problem of corporate profit-maximising behaviour (a behaviour causing great social and environmental harm): getting rid of shareholders.

Consider, for example, worker cooperatives like Mondragon Corporation in Spain and the John Lewis Partnership in the United Kingdom.

They are share-less corporations. They are unowned. They are corporations free from enslavement.

The effect is that they do not maximise profits. Instead, they value the wellbeing of their workers.

Authors: Duncan Ian Wallace, Lecturer, Faculty of Law, Monash University

Read more https://theconversation.com/is-a-corporation-a-slave-many-philosophers-think-so-253226

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