Introduction
In recent times, it has been found that corporations are enjoying too much power and with power, there are several vital problems associated. It appears that they almost enjoy the power of running a parallel government, like corporate espionage. There are several instances of issues related to ethical, environmental, human, and labor rights. All these aspects are associated with the paradigm of corporate globalization where the sole intent of maximization of profit becomes the sole cause of issues. All these aspects are taking place due to the extreme growth of large business houses and transnational corporations and as a result, they have become the storehouse of power too great.
Arguments
Size of economic activity
The economic activities of the top corporate houses are at par with the most prosperous nations of the world. If the gross national product of a country is taken into consideration, it would be found that most corporations can easily rival in terms of yearly turnover. In a recent report, it was seen that out of the top hundred economies of the world, about half of the economies are some brand names or corporate houses. It was also reported that the “Royal Dutch Shell’s revenues are greater than Venezuela’s Gross Domestic Product. Using this measurement, WalMart is bigger than Indonesia. General Motors is roughly the same size as Ireland, New Zealand and Hungary combined” (Karliner and Lewis, 1).
Outsourcing
It should also be noticed that the firms that are implementing offshore outsourcing are not required to pay federal or state taxes for the employees working on the outsourced processes, neither are they required to pay compensations or benefits to them. The outsourcing companies are liable to take care of those issues. This becomes a vital advantage for the businesses which look for cost-reduction strategies. Although these cost-diminution strategies work in favor of growing businesses, the tax establishments do not receive the taxes they are entitled to acquire. This hurts several divisions of the national welfare, which experience loss of assets, and thus it takes its toll on the native economy. As these corporate houses are huge, the government is not able to control this. (Jones, 154) This proves the extent of the power of the corporate houses.
Sweatshops
Karliner and Lewis (2002) mentioned in their report, “These corporations profit from and perpetuate a racist global system that benefits the North, and a small minority in the South, at the expense of the vast majority of people in the South and a growing number of people (often of African, Latin American and Asian descent) in the North” (Karliner and Lewis, 1). It should be mentioned that big corporate like Nike behaved quite unethically when confronted by human rights activists and media. The company never reorganized or implemented humane approaches to its outsourced factories. It restrained itself from creating better working conditions, restricting the working-age limit to a minimum of 18, allowed independent monitoring, induce research funding, providing education, and implementing small business finances. (Jones, 39)
Similarly, in terms of working hours and leave schedule, there were no changes and the sweatshop continued. This ignited protests all over the western world urging buyers to boycott Nike’s products thus affecting the company in a bigger way. However, company policies are yet to be changed and corporations like Nike find themselves too powerful to pay attention to human values as the concentration is always on profit margin. Again, there are no effective regulations against such companies and this is again proof of the supreme power they possess in terms of economy and influence. (Rosner, 72)
Corporate espionage
The corporate structure has become so huge that it uses corporate espionage. Industrial or corporate espionage is spying activities carried out for commercial gains. It refers to activities like stealing trade secrets, subornment, blackmail, and the use of hi-tech surveillance. There exist various ways- ethical, unethical, legitimate, or illegitimate- through which many corporations attempt to procure the trade secrets of their different competitors to gain a competitive edge. The expression is different from legislative and ethical processes like reviewing corporate journals, web locations, patent filings, and other legally accessible means to assess the activities of a corporate organization which is usually known as competitive/corporate intelligence. (Willis, 43) Theoretically, the distinction between espionage and legal procurement of information is evident. However, in reality, it is rather complicated to separate legal and illegal techniques. In particular, on the ethical front of information procurement, the line delineating line becomes even more indistinct and difficult to define. Thus, it is clear that corporatism has become too powerful to diminish ethical values even in business. (Willis, 44)
Consumerism
In recent times, the upper class involves in a flagrant display of wealth. This upper class had emerged as a result of the increased industrialization that led to the presence of a differentiated society. In society, there is now the presence of a working-class and the entrepreneurs who own the wealth. The increase in machine shops and industries means that many people are producing the same thing and thus there is the need to advertise their wares. The people have money to use for their needs and also to waste in an attempt to show off their wealth. Consumerism means the likening of individual happiness and satisfaction to the purchasing and consumption of material possessions. In this new gilded age, there is a lot of self-indulgence in the display of wealth. All the industries need to do is advertise their wares to the consumers who are in turn ready and willing to spend their money on material possessions that can be used to exhibit their social class and wealth. As consumerism grew, the power of corporatism grew along with it and soon became huge and extremely powerful. This consumerism is cunningly monitored by corporations through strategic advertising and this proves that corporatism even possesses the power to control the human mind and mass psychology. (Jones, 231)
Telecommunication
Another cause of this growth is the rise of telecommunication. The involvement of these companies is not without reason. Telecommuting has a lot of advantages. Firstly, the marginalized population is hugely benefited from this form of job. This population includes the physically disabled person, fathers or mothers who have to look after small children, and people who live in areas where there is low availability of physical communication systems. Secondly, this form of employment breaks the barrier of international boundaries and time zone. As there are no time-bound working hours in general the office in this case can function for 24 hours and seven days a week. As a result, Telecommuting can well be defined as a form of job that is completely aligned with the work culture of globalization. (Jones, 78)
It can well be stated that globalization has brought some positive impacts and some negative impacts on the world market economy. As with all types of changes, this massive economic revolution has impacted the marginalized people as well along with the business. It is hard to say whether the impact has been positive or negative because there is a lot of gap and difference between the status in the middle and upper and lower-middle and low classes of business. Globalization has widened this gap to the extent that they look un-breachable. Whichever way you look at this transformation it is obvious that globalization is an economical aspect. And it is good that it is; the onset of globalization has kick-started a movement of liberalization of independent thought process, which due to the heightened global interconnectivity may prove more successful than it ever was in any of the past socio-economic and cultural revolutions and this respect Telecommuting occupies a fundamental part and almost the entire telecommunication system is in the hands of the corporate and this is another proof of corporate power and they are controlling the world with the help of telecommunication power. (Bissell, 112)
Information technology
Another great advantage in the hand of corporations was Information technology and its ability to take up outsourced jobs. Thus the companies involved in the area of Information technology can use offshore outsourcing methods. Similarly, other advantages that are attached to it can be enumerated as multi-fold. Information technology reduces absenteeism, enhances employee productivity, and allows employee flexibility. Information technology also reduces the working burden on a specified employee thereby allowing the employee to remain unstressed and thereby allow better and bigger production in the long run. Information technology, with its perspective of a virtual office, allows customer service processes and order-management re-engineering facilities.
It also allows an employer to hire personnel who would be not available otherwise and as a result Information technology allows an employer to keep employees who are valuable for the company. Apart from these, there are also advantages of cost-benefit in terms of the low cost of infrastructure maintenance and without the burden of provident funds and gratuity for the employees. These elements helped corporatism to generate huge profit and become extremely powerful and control half of the world economy proving them powerful beyond doubt. (Bissell, 125)
Control of power: WTO
All the big corporate houses hold enough power to control the policies of the WTO. The result is unethical and environmentally scary. Karliner and Lewis (2002) indicated, “There are 63,000 transnational corporations worldwide, with 690,000 foreign affiliates. Three quarters of them are based in North America, Western Europe and Japan. Ninety-nine of the 100 largest transnational corporations are from the industrialized countries” (Karliner and Lewis, 1). Alongside, it is also reported that “U.S. and other big business interests have succeeded in watering down and appropriating international environmental agreements” (Karliner and Lewis, 1). Thus, it is obvious that these corporations have grown too big and at this point, they are controlling policies that should have been controlled by WTO or non-profit making government authorities. These are extreme conditions in terms of economy and financial power.
Conclusion
There is no doubt about the power that the corporations possess after the discussion. However, this immense strength should be channeled in a proper if not a controlled. Karliner and Lewis propose that there should be “communication and trust among the trade union movement, progressive NGOs working on human rights and the environment, and community-based initiatives working for social justice, fair trade, renewable energy, organic food, etc” (Karliner and Lewis, 1). This would surely not restrain or control the power structure of the corporations but would at least provide a platform to monitor humane activities and use the power for humanitarian purposes.
Works Cited
Bissell, Ben. Information and Knowledge Management. Auckland: Ebsco publishing, 2006.
Jones, Ian. Outsourcing: A Comparative Analysis of Asia and The Western World. Wellington: LBT & Crooks Limited, 2007.
Karliner, Joshua and Ted Lewis. World Social Forum Conference on Transnational Corporations. CorpWatch. February 1st, 2002. Global Exchange. Web.
Rosner, Burt. ‘HR should get a clue. Workforce: Costa Mesa 80.4 (2007): 72-76.
Willis, Richard. ‘Corporate Cloaks and Daggers’. Management Review 2006: 41-45.