9 minute read
Corporations everywhere
Pages 28-31 | Insight
CORPORATIONS EVERYWHERE
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BY AVA VOLMAN, OPINION EDITOR
Corporate power is beginning to supersede that of citizens, blurring the lines of democracy while shaping the future
IT IS NO SECRET THAT corporations are not what they used to be. Recent years have seen the slow intermingling of companies with humanity, invading aspects of daily life and society. An imbalanced power structure has subsequently been created between corporate entities and people.
Typically, a company’s designated purpose is to sell a service or product to a consumer. Nevertheless, the modern corporation has overpowered this standard, as they have become closely involved with the political and social factors of their consumer’s lives.
Unlimited campaign donations alongside targeted social media advertisements are prime examples of such entanglements. Such interaction allows for corporations to slowly gain more power over their consumer base. Thus, the modern corporation not only finds power from the wealth it creates, but from its command of the choices made by citizens everyday.
The power of one individual is limited through laws and social constructs that have been established over the course of centuries. These regulations set on citizens are made to prevent an unjust seizure of power and have mostly been effective. When a voter elects a representative of their choosing, they expect that they will act accordingly with the motivations of those who put them in office.
Similarly, consumers buy into markets where they find value in what they choose to purchase. These dynamics limit corruption because in each scenario, the consumer and the voter both have power of their own. Yet, as corporations begin to gain influence in both political and social spheres, their roles in the daily lives of each individual become so enlarged that it becomes almost impossible to escape their influence to make decisions for oneself.
Corporations are neither public servants nor benefactors, outside of the confinements set by the ballot and legislation, they have the power to act in accordance to their own agendas rather than the voter’s. This is why the Nike corporation was able to donate $227,000 to the Republican Governors Association’s agenda against LGBTQ+ rights, while having a signature on the coalition for the Equality Act, according to the Center for Political Accountability. These actions directly oppose one another and mislead both political sides; however, due to the lack of accountability corporations are held to, they have no obligation to anyone but themselves.
Large companies are solely concerned with the interests of their shareholders rather than who they will affect. Unless limitations are set on corporate power, the dystopian reality of corporate dominance may soon come to fruition.
CUTTING DOWN THE COMPETITION
It is apparent that the American capitalist economy is dominated by conglomerates rather than individual businesses. Monopolization as well as the absorption of other companies under one large corporate power structure has allowed for a complete takeover of the market, a cycle that is seemingly unbreakable.
Unlike the regulations of the past which directed corporations, today’s laws have loosened and corporations are bound to themselves and their shareholders alone.
The definition of a corporation, as per the Corporate Finance Institute, is “a legal entity created by individuals, stockholders, or shareholders, with the purpose of operating for profit. Corporations are allowed to enter into contracts, sue and be sued, own assets, remit federal and state taxes, and borrow money from financial institutions.” In all legal senses, a corporation is essentially considered a human.
Giving corporations this status understates the capabilities of corporations and undoubtedly limits the legal repercussions of corporations, as they do not act in accordance with what an individual would.
The power of a corporate monopoly is much more influential in today’s economic system than one might think. According to Business Insider, only ten companies control the prepackaged food industry, as they monopolize certain markets. In this manner, the illusion of choice is created in unknowing consumers. Similarly, Amazon, one of the largest corporations globally, maintains control of over 100 subsidiaries, ranging from Whole Foods supermarket to the production company Metro- Goldwyn-Mayer, according to City Index.
“Big corporations are taking over smaller companies, making everything unoriginal and controlled,” junior Myrea Ghetti said.
A single corporation holding such strong control over multiple markets allows for domination of the modern economy, giving smaller competitor companies no chance at survival.
A WEALTH DEFINED DEMOCRACY
Corporations further their influence over the people through a supposedly infallible process: democracy. The purpose of the democratic process is to prevent corruption and imbalances in governmental power; however, the rise of corporations has shaken the system to its core.
Corporate power is a force in the system which has the capability to completely disrupt the democratic process.
The Supreme Court decision Citizens United v. The Federal Election Commission states that corporations may donate unlimited amounts to political campaigns, while an individual is capped at $10,000 per year. This gives multi-industry corporations the capacity to sway an election in favor of candidates with their best interests in mind.
Additionally, “buying” candidates to do a corporation’s bidding while in office becomes not just a concern, but a further threat to the integrity of a free election. Google donated over $283,000 to three separate groups that contributed towards electing Florida officials to oppose Roe v. Wade and vote in favor of strict abortion bans, according to Open Secrets Research Group. These candidates are not considering the best interest of the citizens who exercised their democratic right to put them in office. Instead, they prioritize the support of powerful corporations that in turn fund their campaigns.
In effect, the reelection opportunities of a politician are deeply influenced by their decision to vote along the lines of the corporation’s desires. Therefore, said decision become almost coerced while individual citizens are left unaware.
“The government is meant to serve the people it was elected to represent rather than any corporate interests. Despite this, almost any entity with power, especially those with control over the distribution of information such as most modern social media will wield such power and influence politics for their own monetary benefit,” senior William Hudson said.
This is also seen through the concept of “revolvers,” individuals who alternate between working for a corporation and the government sector that oversees it. This loophole gives revolvers the opportunity to cater governmental actions to the corporations they are involved with, compromising the integrity of the nation’s authoritative figures. In the same manner that political power is concentrated among a few individuals, it becomes more narrowly concentrated when corporations are the financiers. The door is open for corporate power to seize control of the election process.
JUST A PAWN IN THEIR GAME
Corporations humanize themselves through infiltrating the social lives of consumers, using social media as a conduit to do so, as well as control what information consumers can access. In the past, this invasion only went so far as advertisements on an individual’s social media feed. Although this was effective in capturing the attention of consumers, the barrier between a corporation and consumers was still prominent. Recently, however, corporations have taken up creating their own social media accounts to post from in an eerily personal manner.
Companies post as if they are a consumer’s friend, attempting to appear relatable to their consumer base. Namely Wendy’s, one of the largest fast food chains, maintains a Twitter account where they are famous for insulting their competitors and replying to customers. The language used is not at all formal; rather, it uses modern vernacular and slang terms. Such interactions seem too intimate for a multi-billion dollar business to use, yet they result in exactly what they intend: making a customer feel valued. In reality, Wendy’s likely has no regard for what a customer posts, but rather, the money they will spend after an interaction. The corporate adoption of social media has ushered in a new age of advertising — one that is more invasive of consumer’s personal lives, with the naivety of the consumer being taken as a license to exploit.
Furthermore, the amount society relies on corporations to provide information and the lack of obligation held by corporations towards these individuals is an inevitable danger. Although a Google search feels like accessing endless sources of unfiltered information, at the end of the day Google is a corporation with its own best interests in mind. A Wall Street Journal study revealed that Google’s search engine is biased, as it manipulates search algorithms to hide sensitive topics from the autocomplete feature such as abortion and immigration.
These limitations imply that Google has the ability to erase such information from being available on their platform. Corporate control is inescapable in a consumer’s life. Should corporate command continue to grow in the lives of consumers, alongside their influence on politics and economic domination, a future over the lives of many is not such a distant future. h
from the editor
When composing this story, we struggled to navigate the labyrinth of political action commitees, campaign finances and voting records. As we were essentially made to use the very tools of corporate hegemony to shed light on it, finding that there is no escape from the grasp of massive corporations and their political enablers. It is tough to say who regulates who in a world where politicians stand up to corporations by cutting their taxes.
Likewise, it is easy to fall in love with the people that mass-produce your cellphones and keep a double quarter pounder with cheese at a one mile distance at all times, yet, rest assured that above your positive Yelp review; profit is the priority. As a corporation is empowered through its taking of the individual’s power, corralling your vote and dollar into limitedly liable pockets.
Sincerely, Juan Fajardo Insight Editor
students speak up
"POLITICIANS FEEL OBLIGATED TO THEIR SPONSORS RATHER THAN THE PEOPLE," Marina Astorga, Freshman
Ava Volman/ highlights
" POLITICS ARE FOR US NOT CORPORATIONS," Hazel Hernandez, Senior
Ava Volman/ highlights
"CORPORATIONS KNOW THAT A BIG AUDIENCE IS ON SOCIAL MEDIA AND THEY CAN TARGET YOUNG PEOPLE," Andrea Rotondaro, Sophomore
Ava Volman/ highlights
