THE CORPORATION

1. How can we ensure corporations are held accountable for their actions “ethically” and “legally”?

R// According to the documentary a corporation is a group of individuals working together to serve a variety of objectives the principle one is to earn large,growing, legal returns for the people who own the business, sometimes is quite difficult to ensure that they will act ethically and legally, since their main motivation is to generate profit even though there are several politics involve like national and international regulations and also the civil society (consumers) are an interest instrument that can establish limits, for example: by stop the purchase of goods or services that the company provide, forcing them to stop doing inappropriate things.

2. Should individuals (directors, employees, shareholders) bear any responsibility for the actions of a corporation? If so, to what degree?

R// I think that directors, employees and shareholders are in some way responsible of the actions of a corporation, because as I mentioned before, a corporation is a group of individuals that work together to obtain a goal. Also is important to clarify that all the decisions are not only taken by the CEO; their partners are also involved. Besides, an individual can be good person outside the institution he/she is just themselves but at entering at the institution the role changes in some cases since they have to act very aggressively (role of a monster CEO) if they don’t do so the competition will bring them down.

Milton Friedman (novel prize winning economist)said that corporates are an artificial legal structure, that actually a building can’t have moral opinions or social responsibilities but people that are involve with the corporation (employees, stockholders) should have those moral responsibilities.

3. What are the benefits of the corporate form? Could an alternative model offer these as well?

R// some benefits of a corporate are:

·         Owners' personal assets are protected from business debt and liability

·         Corporations have unlimited life extending beyond the illness or death of the owners

·         Tax free benefits such as insurance, travel, and retirement plan deductions

·         Transfer of ownership facilitated by sale of stock

·         Change of ownership need not affect management

·         Easier to raise capital through sale of stocks and bonds

They offer a way to increase standards of living of people that are from underdeveloped countries, gaining a lower cost in production (China & Bangladesh).  For citizens there is another way to obtain a better life quality “the government” if they provide opportunities people might have a better way of life without giving almost for free their work.

4. Search for a foreign multinational corporation that has operations in Colombia. Research if they are run under Colombian rules or regulations or if they have special regulations?

R// an example of a foreign multinational is BBVA from Spain, the regulation of FDI, one can say that Colombia has a very favorable legislation for foreign investment, which for all purposes is treated as national investment. In addition, to facilitate exports were placed ten zones, which offer tax benefits and in which there are no taxes on imports and exports, five special economic zones that provide incentives export-exchange, prosecutors, customs and labor-and Vallejo Plan, offering tax breaks to multinationals and guarantees for the commercialization of products and raw materials.

5. Should economic efficiency (Main argument for privatization) be the primary concern for commons and public services? Are there other criteria to determine who should own or operate them?

R// I believe that corporation (private institutions) brings efficiency to the economy; also it helps to make a good image of the country in terms of competitiveness. Somehow private institutions created a wealth and when they open a branch in another country this brings opportunities of work for the people but also are the public institutions the ones that creates very good benefits for people for example in periods of recession most of this institutions tried to keep their employees in good conditions but as corporations are mainly concerned of profits most of them make quick decision like firing people.    

References:

-Mark Achbar, Joel Bakan, y Jennifer Abbott (producers). (2003). The Corporation [DVD].

Available from http://www.youtube.com/watch?v=Pin8fbdGV9Y&feature=BF&list=PLFA50FBC214A6CE87&index=1

- Kine, John M. 2006. "MNCs and Surrogate Sovereignity" Brown Journal of World Affairs. 

- [authors of the film]. retrieved 2003 from: http://www.nodo50.org/tortuga/Documental-The-Corporation