Tag Archives: corporations

People’s Rights Amendment

Today, the Court has enthroned corporations, permitting them not only all kinds of special economic rights but now, amazingly, moving to grant them the same political rights as the people.

United States Bill of Rights

Constitutional law expert,

The movement to reserve the rights ensured by the US Constitution to citizens and stop them from being awarded to corporations is rapidly gaining steam. The legal standing of corporations as people began in 1886, in the famous case Santa Clara County v. Southern Pacific Railroad Company in which the court based its arguments on the Constitution in denying Santa Clara County the right to right to tax property unfairly assessed for taxes. This decision was the beginning of a long string of decisions that accorded corporations as legal entities the same rights as persons. The problem is that corporations have no personal conscience. They are legal entities with no sensibilities. Their boards, executives, and managers can act on under shelter of the corporation with legal impunity. A corporation that controls a town and all the jobs in it, can close its factory with no personal sense of obligation or legal responsibility to the people it employs. It can destroy a town.

This was not always the case. When the corporate charter was established legally it had term limits. The corporation had to apply to the state in a given number of years in order to continue conducting business as a corporation. The State, acting on behalf of the people, could refuse to renew the charter of a company that was not acting in the best interests of a community and withdraw the special rights of corporations to protect their investors from personal responsibility. The investors could continue to operate as a business but they would be liable for their actions.

Today corporation can claim the people’s inalienable rights of freedom of speech, freedom of the press, free exercise of religion, freedom of association, and all such other rights of the people. But there is no there there. Corporations a shifty giants with enormous power for which no one can be held accountable. They have more money and power than local governments.

The People’s Rights Amendment seeks to correct this. It reads as follows:

Section 1. We the people who ordain and establish this Constitution intend the rights protected by this Constitution to be the rights of natural persons.

Section 2. The words people, person, or citizen as used in this Constitution do not include corporations, limited liability companies or other corporate entities established by the laws of any State, the United States, or any foreign state, and such corporate entities are subject to such regulation as the people, through their elected State and Federal representatives, deem reasonable and are otherwise consistent with the powers of Congress and the States under this Constitution.

Section 3. Nothing contained herein shall be construed to limit the people’s rights of freedom of speech, freedom of the press, free exercise of religion, freedom of association and all such other rights of the people, which rights are inalienable.

To sign a petition supporting the People’s Rights Amendment to the US Constitution:

http://www.peoplesrightsamendment.org/

Decentralized Governance of Corporate Intranets

Nielson Norman Group LogoOne of the newsletters I read is AlertBox from the Nielsen Norman Group, Jakob Nielson has long been considered the expert on website usability. NN/g does extensive research for major corporations makes the information available to the public. His newsletter this morning included a piece on trends in intranet portals, which make extensive corporate information available for use by employees. In this report I came across a surprise—a section on governance! Most often such reports refer to “management.” This one out and out uses “governance,” talks about “roles” as central in governance, and stresses that in the last year, decentralized governance has been found increasingly beneficial.

Governance Becoming More Decentralized

As enterprise portals mature and grow so does the need for more structured, yet disbursed, portal governance. Portal teams are learning that since the intranet portal touches all layers of the organization, so should the governance. The new case studies reveal a move toward a decentralized or matrix governance model, as opposed to past years where governance was more centralized — being created, communicated, and policed by the enterprise portal owners.

Some organizations find themselves creating governance where once there was none, while others flesh out more specific details of their portal governance structure to accommodate touch points across the organization.

For example, the Carle Foundation has created a governance structure that is both formal and flexible, with defined roles, responsibilities, and workflows. The governance team is drawn from all levels of the organization and has assigned tasks to staff from nearly every operational area across the organization. From the senior sponsor to the individual content contributor everyone has a role to play in ensuring the upkeep and ongoing development of the intranet portal.

Governance, like most aspects of portal development, is marathon not a sprint, and portal teams realize that governance must evolve, as does the portal. (Emphasis added.)

NN/g’s recommendations are based on 83 intranet portals. The corporations studied in this research report were:

  • The Carle Foundation
  • City of Olathe, Kansas
  • Coca-Cola Enterprises Ltd.
  • Consumer Financial Protection Bureau (CFPB)
  • FDC Solutions, Inc.
  • Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e.V.
  • Fraunhofer Heinrich Hertz Institute
  • Municipal Design and Survey Unitary Enterprise “Minskinzhproekt”
  • National Archives and Records Administration (NARA)
  • Northern Arizona University (NAU)
  • Palm Beach County Board of County Commissioners
  • Persistent Systems Limited
  • Resource Data, Inc.
  • Think Mutual Bank
  • Department of Transport (Canada)
  • Yara International ASA

Excerpt from “Intranet Portals are the Hub of the Enterprise Universe” by Patty Caya and Kara Pernice on June 29, 2014

Are Sociocratic Corporations Legal?

Sociocratic corporations are perfectly legal. All the laws that constrain corporate functioning can be met while applying sociocratic values, principles, and methods.

Laws governing corporations, both for profit and not for profit, are generally written to prevent abuses that corporations have committed in the past, often with investors’ or donors’ money. In writing the law, the government is presenting its solution to that problem. If you can determine what the law intended to prevent, you will have a good guide to functioning within the law and build a sociocratic structure.

For example, in the US, there is often a requirement that the Board of Directors function by majority vote. The law was intended to ensure that “at least” a majority were in favor of an action. It is a minimum standard, not a maximum standard. Consent contains within it the majority. There is no contradiction in the numbers.

Corporate legislation requires an organization to have a Board of Directors with full authority to govern the organization, but the board can delegate its authority. This is what higher circles do when they create lower circles.

The legal protection for investors and donors is that if the lower circles do not carry out their delegated duties, the Board has the authority to take control. The Board can delegate authority as long as it retains responsibility for the results. This is also perfectly sociocratic since a higher circle can decide to eliminate a lower circle that is not functioning properly.

Even if you are confronting an old law that protected someone 200 years ago, however, the worst thing you can do is to try to convince the government that they are wrong at the same time you are trying to become incorporated. Get legally incorporated, then demonstrate the superiority of the sociocratic structure. Until you have done that, no one will listen to you.

We had this problem with cohousing communities getting approved by town zoning boards. Most cohousing communities are legally structured as condominiums. There are very clear laws about “common interest” real estate in which each owner has a percentage interest. Instead of explaining how the cohousing project met all the legal requirements for condominiums and was financially sound, groups were going to banks and zoning boards talking about shared meals, consensus decision-making, supportive environments for children, changing the world, recycling, etc.

This information was distracting the banks and boards and creating uncertainty about totally sound real estate developments. Cohousing groups were routinely turned down until they found a conventional developing partner, a very sympathetic banker, or began sounding like the legally established condominium that they were.

To ensure that you are both within the law and not undermining the self-optimizing sociocratic structure, you only need a lawyer and a sociocratic consultant with the level of training required to set up a complex organization.