Table of Contents
Introduction by Ralph Nader
Part I: Corporate Crime and Violence
No Mind,
No Crime
Cracking Down on Corruption
No Shame, No Blame
On Foreign Bribery, Justice is Out to Lunch
The Competitor
is our friend, the Consumer our Enemy
Blue Cross, Blue Shield, Blue Criminal
Accident or Manslaughter
The Academic
Siberia of Corporate Criminology
Part II: The Corporate Attack on Democracy
Clean
Food, or Irradiated Dirty Food?
Visa and the Anti-Child Support Act
Big Tobacco's Ruse
Avoiding the Evil of Two
Lessers
The Citibank-Travelers Steamroller
Boom and Bailout
An Allergy to Democracy
Stacking the Decks
Part III: The Global Hunt for Mega-Profits
Sanctioning
Burma,
Sanctioning the United States
The Bailout of Banks
Truly
Retiring the Marlboro Man
When the People Speak, the Corporations Squeak
The Suharto-U.S. Corporate Connection
U.S.
Drug Imperialism
The IMF Corporate Welfare
Machine
Ending Wall Street's Reign
Part IV: Corporation Nation
Multinational Monitor's
10 Worst Corporations of the Year--1997
Corporate Fronts: An Epidemic with a Cure
The Corporate Takeover of a Consumer Group
The More You Watch, The Less
You Know
A Nation of Spectators?
A Tale of Two Mainers
When It Comes to Cancer, We're Not All in It Together
Pulp
Non-Fiction: The Ecologist Shredded
Neutron Jack Welch
Corporation Nation
The Price We Pay: Multinational
Monitor's
10 Worst Corporations of 1998
Part V: The Big Boys Unite
Merger Mania in the 1990s
Record
Levels of Corporate Mergers
Citicorp's Uncivil Corporate disobedience
Merger Mania Hits Oil
One World, One Company?
Part VI: Commercialism Run Amok
Smithsonian
for Sale?
Brinkley Shills for Corporate Criminal
The Corporate Takeover
of Public Space
Saving or Trashing America's Treasures?
Where the Wild Things Are
Wal-Mart and the Strip-Mining of America
Progress Without People
Part VII: Of Sweatshops and Unionbusting
Fighting
Back on Workers' Comp
Union-Buster Memorial Airport
Goodbye, Roberta: The CBS-Nike Connection
Michael Eisner vs. Vietnamese Laborers
NAFTAshock
Part VIII: Do I Have to Arrest You?
Corporations
and the Law
Judge
to GM: Do I Have to Arrest You?
The Corporate Seminar for Judges
Destroy the Dummy, Destroy the Child
First Amendment
Follies
Holding Gun Corporations Responsible
Democracy and Product Liability Deform
Dissolving Unocal
Smoked
Out: The Attorneys General Cave
In to Big Tobacco
Reviews
"The incisive and sharply focused snapshots presented here give a telling portrait of some of the most dangerous
forces undermining what is decent and hopeful in American and global society. A warning that should be taken very seriously."
--Noam Chomsky
Jim Hightower of Jim Hightower Radio
"Mokhiber and Weissman are veteran trackers of the corporate
beasts that pillage the globe. In Corporate Predators, they are on the tail of GM, Exxon, Philip Morris and other snakes,
showing how they prey on workers, the environment and consumers. Corporate Predators reveals Big Business perverting our justice
system, stacking the political decks, snuggling up to kids, inserting commercials into every nook and cranny of society, hawking
dangerous products, busting unions, endangering and brutalizing workers and subverting our democratic pretensions. To escape
from being snack food for the corporate godzillas, read Corporate Predators."
Inter Press Service
"Go[es] for the corporate jugular, unmasking, analyzing, and reporting about corporate crime;
big business and democracy; US companies abroad; rampant commercialism; and mergers. ... [T]he pages of Corporate Predators
are a quick read, packing one-two punches now and again in varied, topical columns."
Dollars and Sense Magazine
Ross Perot, the faux populist billionaire, predicted that NAFTA-induced job loss to Mexico
would emit a "giant sucking sound." Yet Perot's prominent ears failed to hear the even louder sucking sound emanating from
corporate towers -- the sound of record-breaking profits rushing ever upward. These profits were corporations' reward for
decades spent weakening unions, lobbying Congress for procorporate laws, and convincing the public that government, not business,
is the cause of their growing anxiety about job security.
Those thirsting for a well-researched guide
to the underhanded tactics used by corporations to accomplish these goals should pick up Russell Mokhiber and Robert Weissman's
new book, Corporate Predators. It is composed of well-researched, short pieces that were originally published as
the syndicated column, "Focus on the Corporation."
Corporate crime is mostly hidden from public
view, as the authors demonstrate with a glance at the program of the 50th Annual Meeting of the American Society of Criminology.
On its list of 503 sessions, Mokhiber and Weissman found that "fewer than 10... sessions dealt in any way with corporate crime."
Those that did largely focused on "crimes against corporations -- the traditional white collar crimes of theft, embezzlement
and the like, plus newly defined white-collar crimes like 'theft of time,'" by taking too long breaks, or writing a personal
letter on company time. Why the lack of academic interest? In part, they write, it is because "big corporations have marinated
our formerly independent institutions in corporate cash and influence."
If more researchers and reporters were to look
into corporate crime they might discover what Mokhiber and Weissman did in 1998: General Motors denying, despite recently
uncovered evidence, that they participated in the Nazi war machine; Mobil Oil loaning equipment to the Indonesian military
to dig mass graves for indigenous rebels in the Aceh province; and Royal Caribbean Cruise Lines admitting that it dumped oil
in the Atlantic and then lying to the Coast Guard about it.
Aside from a few case studies,
Mokhiber and Weissman do not offer many solutions to the deceit and atrocities they reveal. Nonetheless, their research offers
treasures to teachers, researhcers, and disillusioned activists who need a refill of indignation. --John Krumm
The American Reporter
The Fourteenth Amendment to the U.S.
Constitution stipulates that "No State shall make or enforce any law which shall abridge the privileges or immunities of citizens
of the United States; nor shall any State
deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction
the equal protection of the laws."
In the 1886 Supreme Court case, Santa
Clara County v. Southern Pacific Railroad Co., the Court declared
that a corporation was a "person" as interpreted by the Fourteenth Amendment. In a preface to the Court's argument, Chief
Justice Morrison R. Waite observed that all the Justices shared the opinion that the provisions of the Fourteenth Amendment
that applied to persons also "applied to these corporations," the corporate
defendants affected by the case before the
Court.
This 19th Century decision set a momentous
precedent. It gave an abstract paper construct, a corporation, the legal rights of a "person," though without binding these
legal persons with the same social responsibilities communities place on individual human beings.
Four
score and 14 years later, the Court de facto extended the progressively enhanced legal empowerment of corporations,
enabling them finally to design contracts that supersede and nullify an individual human being's protections under the U.S.
Constitution's Bill of Rights.
Not surprisingly, it was a government agency,
namely, the CIA, that pioneered the use of employment contracts to limit the fundamental freedoms of American citizens. In
Snepp v. the CIA (1980), the Court upheld an injunction enjoining Snepp from publishing any work concerning the CIA or its
activities without pre-publication review by the CIA.
The Agency had sued ex-agent Frank Snepp for
publishing his book, "Decent Interval," without submitting it to the CIA for pre-publication review. Although the book did
not contain any information that was not already part of the public record, when Snepp entered the CIA, he signed a secrecy
contract in which he promised not to publish any information or material relating to the agency without prepublication approval.
The Court
found that Snepp had not only violated his contract, but also breached a fiduciary duty to the government. It
imposed a "constructive trust" on the proceeds of his book. Thus, all the money Frank Snepp received from publishing his book
had to be turned over to the federal government.
Today, corporations are using the "contract
tool" to nullify the rights of citizens under the Constitution of the United States.
The best example of this occurs when insurance companies require patients to "waive" their Constitutional rights to due process
and submit to "arbitration" in a dispute with a doctor covered by the insurer. This de
facto deprives the human patient
of immediate legal due process as guaranteed by the same Fourteenth Amendment that gave life to paper corporations.
Through the years and a series of corporate-friendly,
perhaps socially irresponsible decisions, the Supreme Court has created a horde of monstrous predators, legal Dr. Jekyll/Mr.
Hydes.
At one level, corporations develop new technologies
and economies of scale. These may serve the economic interests of mass consumers by introducing new products and more
efficient methods of mass production. On another level, given the absence of political control today, corporations serve to
destroy the foundations of the civic community and the lives of people who reside in them -- here in the United
States, and everywhere else in the world.
In the struggle to survive, denial is strong.
Most Americans are frustrated by the gravity of the problem: legally, corporations have unlimited life, unlimited size, unlimited
power, and a whole lot of license to control the political, economic, and cultural destinies and
disparities of local communities
and of the world. Having no conscience for the community, corporations remain focused solely on their own "rational" self
interest in profit, respecting no human being that stands in their way, especially those lacking status, wealth, or power.
Mokhiber and Weissman's book, "Corporate Predators,"
is important for the information it contains about impact corporations have on you and I, our communities and the world.
Russell Mokhiber is editor of the "Corporate
Crime Reporter." Robert Weissman is editor of the "Multinational Monitor." The authors' agenda is clear, and "Corporate Predators"
is spiced with the kind of rhetoric one would expect from writers reporting on the evils of corporations. But you can ignore
the rhetoric, if you want. Facts speak
for themselves.
The book itself is a collection of the columns
the authors wrote during 1997 and 1998. The data it contains is a step toward raising public consciousness about the legally
accepted institutions that control their future. "Corporate Predators" contains facts and information about corporations that
rarely reaches the general public in a unified, coherent way. And the public can change the law, once people grasp the problem
and
unify to solve it.
"Corporate Predators" exposes the problems
in monitoring corporate crimes, for example. In "No Mind, No Crime," the authors write, "While street crime is reportedly
being brought under control in America's major cities, all
indications are that corporate crime and violence continue to skyrocket." Yet some legal scholars like George Mason Law School
Professor Jeffrey Parker argue, "Since a corporation has no mind, is can commit no crime." Then why give it the legal status
of a thinking human being?
According to Mokhiber and Weismann, "The FBI
does not issue a yearly "Corporate Crime in the United States"
report, despite strong evidence indicating corporate crime and violence inflicts far more damage in society than all street
crime combined." Indeed, the FBI "Crime in the United States"
report ignores corporate and white-collar crimes such as pollution, procurement fraud, financial fraud, public corruption
and occupational homicide, while it does document murder, robbery, assault, burglary, and other street crimes.
The authors also note throughout the book that
corporate crime and violence goes undetected or unprosecuted either because corporations can modify the laws to excuse them
from wrongdoing or they have enough power to influence prosecutorial actions and outcomes.
Yet companies do commit crimes. A few are uncovered
and sometimes prosecuted. Their column, "Blue Cross, Blue Shield, Blue Criminal," describes the 1998 case where Blue
Cross/Blue Shield of Illinois pled guilty to eight felony counts after admitting concealing evidence in a Medicare claim payment
investigation. In another case, Blue Cross/Blue Shield of Florida paid $10 million to settle charges that it falsified and
failed
to properly screen provider claims. These are not the only states wherein this particular corporation faced criminal charges.
The authors report in "Brinkley Shills for
Corporate Criminals" that in 1996 Archer Daniels Midland (ADM) pled guilty to criminal price fixing and paid a $100 million
fine. ADM hired David Brinkley to film a series of TV promos to repair the company's image. Our vocabulary has no concept
of working for a corporate felon.
In 1998 state testimony showed that General
Electric dumped a millions tons of PCBs (polychlorinated biphenyls) into the Hudson River, lining the
bottom of a 200 mile strip. The Oil Pollution Act, passed by Congress in 1990, required the National Oceanic and Atmospheric
Administration (N.O.A.A.) to develop a new set of rules and procedures to determine exactly how toxic cleanup sums should
be calculated.
As described in "Saving or Trashing America's
Treasures?" at issue for General Electric are the tons of PCBs that it dumped into the Hudson River.
G.E. wants escape responsibility for the environmental damage it caused and wants the rules changed before it is forced to
clean up this toxic environmental mess. The cleanup could cost the company $2 billion to remove from the river. GE says such
a cost is unfair, even though its revenues for 1997 alone reached a record $90 billion. Court cases are pending.
In "Dissolving Unocal" the authors describe
how a California citizens group petitioned the state attorney general (Dan Lungren)
to revoke the charter of Union Oil of California for pollution, OSHA violations, worker discrimination, and complicity in
human rights
violations in Afghanistan and Burma.
Of course, Lungren rejected the 127-page petition within a couple days. Revoking a corporate charter has happened only once
in California this century. Loyola Law School Professor Robert Benson explains,
"California attorneys general haven't often done it because they've become soft
on corporate crime."
While the public is becoming increasingly aware
of corporate control of the political process, the question of how to take back our government from corporations is a problem
the authors raise that requires a solution. Mokhiber and Weissman suggest, "Citizens activists forced to confront corporate
crime and violence in their community increasingly see that Big Business dominates both major parties."
In "Boom and Bust" the authors describe how
large institutional investors -- Merrill Lynch & Co., Goldman Sach & Co., Bear, Stearns, & Co. and Bankers Trust
Corp. -- call on the government for taxpayer bailouts when hedge funds with billions invested go bust. Calls placed to the
Federal Reserve Chairman or Treasury Secretary lead to orchestrated bailouts that benefit those with the millions in risky
investments. The
political party affiliation of the office holder has little significance -- the big guy can always get
an infusion of worker and middleclass taxpayer capital to reduce his risk irrespective of which political party holds power.
Similar kinds of political arrangements exist
in other industries, including oil, pharmaceuticals, gambling, and manufacturing. Meanwhile, forget campaign finance
reform. In Buckley v. Valeo (1976) and First National Bank of Boston v.
Bellotti (1978), the Supreme Court declared corporate political contributions as a person's exercise of free speech. When
the elections are over, it's time to legislate. And as the authors report, "If major corporations don't like a law, they can
invest millions
in campaign contributions, lobbyists, and political advertisements" to change the law.
Sometimes they just ignore the law. The 1998
proposed merger of Citicorp and Travelers Group is such a case. According to Mokhiber and Weissman, "This merger is flatly
prohibited by federal law that prevents banks, securities firms, and insurance companies from owning each other." But the
financial services industry fought for years to tear down the regulatory wall separating commercial banking from insurance
and
investment banking. The merging companies can tie up litigation for two to five years, while they lobby to change the
law.
According to Mokhiber and Weissman, "When Teddy
Roosevelt-era trustbusters broke up the Standard Oil monopoly, they were motivated by political as much as economic concerns.
They understood that concentrated economic power translates into political power, and that concentrated political power
in incompatible with democracy." Today, conservatism has buried the trustbusters.
In "One World, One Company" the authors note
that a recent United Nations report highlights the importance of recognizing the political implications of mergers and acquisitions,
especially American and European takeovers of Third World companies. Such acquisitions do not create
new jobs, generate new economic activity, or even represent new investments. Only the company name changes. Meanwhile, the
takeovers create private monopolies and oligopolies that sustain local price gouging, degradation
in living standards,
suppression of local independent innovation, and the maintenance of a hierarchical social structure with great disparities
in wealth.
People who've lived in the United
States through the corporate downsizing strategies implemented during recessions or as a
result of mergers understand how corporate consolidation and intimidation affect local communities.
During the Reagan years, a new climate for
Big Business emerged. The decision to fire the striking air traffic controllers broke the Professional Air Traffic Controllers
Association (PATCO). Union membership declined nationally. Congress passed the Garn-St. Germain bill, which deregulated the
Saving and Loan Associations. Taxpayers paid the $500 billion plus bill for the S & L collapse, resulting in increased
dissatisfaction with taxation: the politically desired result from the conservative, pro-business perspective.
Big Business still today capitalize on the
political and economic climate Reagan created. Corporations acquired enhanced power from increased capital mobility, foreign
competition, rapid technological change, and downsizing. After NAFTA, they could move to Mexico.
As Mokhiber and Weissman report, "Employers use threats of plant relocations to bust unions; rely on weak or non-existent
unions to permit downsizing;
they capitalize on technological change to speed restructuring and to shift production abroad.
Many workers are so intimidated that they fear unionizing or even asking for a raise."
The authors report a recent study showed that,
in companies subjected to union drives between 1993 and 1995, more than a third of employers fired workers for union activity,
38 percent gave special favors to those who opposed the union activity, and 14 percent used electronic surveillance of union
activists.
Moreover, as corporations have become strident
defenders of First Amendment freedoms in an electoral context, with increasing frequency they are intimidating citizens from
exercising their own free speech rights. More and more corporations are charging community activists who speak out against
alleged corporate wrongdoing with defamation, libel, slander, and other offenses, suing them for large sums of money. As the
authors suggest, "Most corporate suits fail, but they have the desired effect of
tying up activists' time, and intimidating
them and others from speaking out." Free speech is rarely allowed anywhere corporations control the message through their
financial power.
Public political culture is becoming less and
less a pure human endeavor and more and more a corporate product. Information control is an important corporate mission, as
politicians plan to privatize prisons, law enforcement, social security, and even components of the military.
In "Corporate Fronts: An Epidemic with a Cure,"
the authors tell the story of Sandra Steingraber, whose book, "Living Downstream: An Ecologist Looks At Cancer and the
Environment," was savagely reviewed by Dr. Jerry Berke from Ashton, Massachusetts,
in the "New England Journal of Medicine." Berke called the book, "a biased work" of an environmentalist. According to the
authors, "Steingraber soon learned that the Dr. Jerry
Berke who reviewed her book was in fact director of toxicology at
W.R. Grace & Co., on of the largest chemical companies in the United States."
The chemical pollution of this company was captured in the book, "A Civil Action," now a motion picture starring John Travolta.
Corporations are resorting to new tactics to
delude the public. Mokhiber and Weissman describe how corporations set up and fund think tanks like the American
Enterprise Institute and Hudson Institute. The set up front groups like Citizens Against Lawsuit Abuse or the Electric Consumers
Association. They fund "public interest groups" like the World Wildlife Federation or the Environmental Defense Fund.
Corporations have taken over organizations, like the National Consumers League. And they fund many national corporate-friendly
conferences with misleading themes,
such as "Focus on Youth: The New Consumer Power," sponsored by Visa USA, the Chemical
Specialties Manufacturers Association, the Chlorine Chemical Council, Monsanto, General Motors, and others.
At the same time, all media efforts are made
to block reports deleterious to corporate interests. The "old boy" network meets advertising.
In a lawsuit filed against WTVT, a Fox Television
affiliate in Tampa, Florida, two journalists allege that Fox executives ordered them to broadcast lies about Monsanto's controversial
bovine growth hormone (BGH), now being used by many dairy farmers across the country. Jane Akre and Steve Wilson had produced
a four-part series on BGH in the Florida milk supply. Several countries around
the world prohibit use if BGH in cows. When Akre and Wilson refused to include falsehoods in "adjustments" to the
script,
they were fired.
This case represents only one of many involving
issues focused on the media and a number of corporations. Self-censorship of the media is well known today.
Meanwhile, corporations have extended their
national cultural reach and control to museums, schools, and the arts. Corporations regularly sponsor exhibits at the
Smithsonian Institution, in Washington,D.C., where they
also block information that is critical to their interests. "Fund raisers" at cultural institutions throughout the country
are
faced with this problem.
Corporations are now providing study guides
and textbooks to public schools, and not without attempting to influence the contents. All the while, the flow of information
has become concentrated in fewer and fewer independent newspapers, radio stations, and television stations. National
bookstore chains threaten all local independent booksellers.
With the political control of the American
body politic in their pockets, corporations control the political state of the world by inducing foreign policies protecting
authoritarian regimes, oligopolies, and investment risks. At the international level, support for corporate interests while
sacrificing needs of people has become a permanent component of U.S.
foreign policy. Countries like China and India
have been able to maintain some modicum of political and economic independence due to the size of their populations and nationalist
policies of their political leaders. Other smaller countries from Argentina
and Chile to Nigeria
and Indonesia have had their authoritarian regimes installed
and sustained through American foreign policy designed to protect corporate
interests.
Bottom line, at a pure human level, corporations
represent the amoral, absence of ethics in human society. Some corporations try to balance their deeds with philanthropic
contributions of one sort of another. But this is not recompense for the damage and death done to communities and people throughout
the world.
The blind pursuance of corporate interests
leads to the devaluation of human beings, as the author describe, when they report that Occidental Petroleum is intent on
drilling in the Colombian rainforest on land considered sacred by the U'wa people, who say they will commit collective suicide
if the drilling doesn't stop. The same can be said for
companies that charge a price that is 10 to 100 times the cost of
producing the product, as is the case in the apparel and pharmaceutical industries. This is something the facade of occasional
conscience-easing corporate philanthropy cannot hide.
Corporations have large budgets for marketing
mendacity promoting dishonest "spins" that have become part of the expectation of doing business. They lie about their
products and maintain law-suit budgets to cover losses due to product defect judgments. As Mokhiber and Weissman document,
too many corporations get low performance scores for "decent treatment of workers, environmental preservation, respect for
human
rights, delivery of affordable and quality consumer goods and services and
adherence to the law."
Perhaps the most disastrous impact corporations
have in our lives is on the human personality. On one hand, the PR-driven marketplace degrades honesty and integrity. On the
other hand, democratic values of tolerance and open discussion become diluted in an organizational environment that fundamentally
emulates a feudalistic/militaristic
structure. The struggle to maintain a job occurs in the context of an asymmetric relationship
where obsequious sycophancy is highly prioritized.
Today, the Fortune 1000 corporations control
70 percent of the economy. When the nation was founded, the economy more closely approached a state of pure competition. Then
people dealt with people. Now supervisors manage their "human resources" as they manage raw materials, which are discarded
when they lose their usefulness.
Read "Corporate Predators." And
perhaps drop a line to your favorite Supreme Court Justice and inquire about how this march toward Corporate Feudalism can
be legally stopped, on the ethical assumption that we truly ought to "put people first." -- Charles Reid
Highlights:
Bib Business Sacks the Global Village:
How are corporations tightening their grip on the global political economy? How does this affect you?
Read Mokhiber and Weissman's Corporate Predators and find out:
Microsoft
Chairman and CEO Bill Gates' net wealth -- $51 billion -- is greater than the combined net worth of the poorest 40 percent
of Americans (106 million people).
Hundreds of hospitals are
"dumping" patients who can't afford to pay.
The feds are criminally
prosecuting big tobacco companies for smuggling cigarettes into Canada. (Never mind addicting young kids to smoke and thus condemning them to a certain, albeit,
slow, death -- can't criminally prosecute them for that.)
Prescription
drugs may cause 100,000 deaths a year.
Two Fox-TV reporters
in Florida are fired for trying to report on adverse health effects
associated with genetically engineered foods.
The U.S. Department
of Agriculture proposes that genetically engineered foods be labelled "organic."
Coal
companies continue to cheat on air quality tests as hundreds of coal miners continue to die each year from black lung disease.
The North American Securities Administrators Association estimates
that Americans lose about $1 million a hour to securities fraud.
Robert
Reich says that megamergers threaten democracy. Corporate crime explodes, but the academic study of corporate crime vanishes.
Three hundred trade unionists around the world were killed
in 1997 for defending their rights.
Corporate firms lobbying
to cripple the Superfund law outnumber environmental groups seeking to defend it by 30 to one.
Down
on Nike? Chinese political prisoners allegedly make Adidas products.
Blue
Cross Blue Shield Illinois is a corporate criminal. Chemical companies are testing pesticides
on human beings.
Senator Charles Grassley, R-Iowa, questions
whether the Pentagon's financial controls have suffered a "complete and utter breakdown."
Environmental
crimes prosecution are down sharply under Clinton/Gore. Bush/Quayle had a better record.
Bell
Atlantic buys Maurice Sendak's Where the Wild Things Are illustrations to sell telephone products.
Companies
that have workers die on the job continue to be met with fines. Criminal prosecutions still rare.
This
is the price paid for living in corporate-dominated society. Wealth disparity, megamergers and the resulting consolidation
of corporate power, commercialism run amok, rampant corporate crime, death without justice, pollution, cancer and an unrelenting
attack on democracy.
From union-busting to food irradiation,
from faulty air bags that kill but are kept on the market anyway to judges who take bribes, from the IMF to oil companies
-- wherever the corporate predators strike, Mokhiber and Weissman are there, reporting from a relentlessly human perspective,
sounding the alarm and calling people to action.
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